The Misunderstood Relationship Between Crypto and Web3

One of the most persistent misconceptions about Web3 is that it exists solely for cryptocurrency, and that cryptocurrency itself is inherently a scam. Headlines dominated by price swings, market speculation, and financial controversy have shaped public perception, often reducing an entire technological movement to a single, polarizing use case.

But Web3 is far broader than cryptocurrency. In reality, cryptocurrency is just one application of blockchain technology- and not even the most transformative one. To understand why, we need to separate the technology, the financial layer, and the social meaning behind ownership in Web3.

The Rise of Cryptocurrency

For many people, their first exposure to blockchain came through dramatic stories about digital coins rising and falling in value. Because of this, Web3 became synonymous with trading NFTs, speculative investing, financial risk, and regulatory debate. Bitcoin in particular has dominated the conversation due to its financial utility and its reliance on scarcity. Most recently, Bitcoin has hit all time highs in late summer and fall of 2024, followed by a dip that cut its value in half, creating salacious headlines filled with doubt and scrutinity.

Cryptocurrency has captured global attention for a simple reason: money is emotionally powerful. Financial systems affect everyone. When a new form of digital scarcity appeared, one not controlled by governments or banks, it sparked intense reactions ranging from excitement to skepticism. Scarcity makes cryptocurrency ideal for finance because limited supply can create perceived value, ownership can be transferred without intermediaries, and participation in the network can be rewarded. These traits made cryptocurrency the fastest way to demonstrate what blockchain could do. But they also unintentionally narrowed the public narrative around Web3. This narrow framing overlooks the foundational innovation of blockchain: a decentralized system for recording ownership and participation without relying on a central authority. Cryptocurrency, specifically Bitcoin, is simply the first large-scale use case of that system and not the definition of it.

The True Meaning of Cryptocurrency in Web3

If we look past speculation and price charts, cryptocurrency reveals a deeper idea.

Ownership. Cryptocurrency introduced the concept that individuals can directly own digital value without intermediaries. This same principle now applies to digital identity, data, and online presence.

Participation. Holding tokens often enables users to interact with and shape a network, whether through governance, staking, or contribution. Web3 expands this into community decision-making, creator economies, and shared digital infrastructure.

Stake in the Network. Cryptocurrency aligns incentives between users and the systems they use. Instead of being the product, participants become stakeholders in the ecosystem’s success.

These ideas matter far more than price volatility. They represent a structural change in how the internet can function.

Another overlooked reality is that different blockchains serve different purposes. Some prioritize payments and financial settlement, while others prioritize programmability and more. It's important to remember that Bitcoin is just one blockchain platform among many, and it was built with finance in mind. Reducing all blockchain activity to the value of Bitcoin’s cryptocurrency ignores the diversity of innovation happening across the space.

Reframing the Conversation Around Cryptocurrency and Web3

To move forward, the conversation around Web3 must evolve from “Is cryptocurrency legitimate?” to “How does decentralized ownership reshape the internet?” When viewed through this broader lens, Web3 becomes less about speculation and more about self-sovereignty, interoperable digital identity, and transparent participation. Cryptocurrency helped open the door, but it is not the ultimate destination.