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Ethereum co-founder Vitalik Buterin has reignited debate within the crypto community after publicly criticizing billionaire investor Peter Thiel. In a post on X, Buterin stated that Thiel is “not a cypherpunk,” highlighting deep philosophical differences between the two figures.
This tension stems from Thiel’s application of Straussian thought. In a 2007 essay called The Straussian Moment, Thiel argued that intelligence and secrecy are key to maintaining world order. He envisioned the use of surveillance systems such as Echelon as the foundation of a new “pax Americana.”
Such statements contradict the cypherpunk ideals of privacy and decentralization that drove Bitcoin and Ethereum’s inception.
Reminder that Peter Thiel is, to put it mildly, not a cypherpunk pic.twitter.com/aZQ1AUUCOb
— vitalik.eth (@VitalikButerin) October 3, 2025
Buterin attached a link to the essay and noted its timing, writing:
“Note that this was from 2007, a decade before his more recent shifts, and two years before his quote ‘I no longer believe that freedom and democracy are compatible.’”
Thiel’s early life shows this philosophy at work. At Stanford, he studied with Straussite scholars and was co-founder of The Stanford Review, a conservative publication modeled on the distant elite political structures. His doubts on democracy were apparent as early as 2009 when he stated, “I no longer believe that freedom and democracy are compatible.”
Other community members noted that Thiel’s positions are complex. One user pointed out Thiel’s foreword to the 2020 edition of The Sovereign Individual, which is more akin to cypherpunk thinking, indicating that his views might have changed over the last years.
His business record follows the same pattern. Palantir, the surveillance company he co-founded, has become an important technology partner of U.S. intelligence agencies.
Within crypto, Thiel also holds big stakes: 9.1% of BitMine Immersion Technologies (BMNR), and 7.5% of ETHZilla, two of the largest treasury holders in Ethereum’s ecosystem.
Ethereum governance and calls for ‘ossification’
Buterin’s comments have sparked debate about the role powerful investors should play in Ethereum’s ecosystem.
Some members of the community voiced concerns about potential centralization risks and suggested that Ethereum should eventually “ossify” like Bitcoin, meaning it should stop evolving the protocol once scaling and clean-up are complete.
Buterin supported this idea of incremental stiffening, stating that Ethereum needed to become more conservative with major protocol upgrades. However, he stressed the answer is not in narrowing decision-making but in broadening research and development participation.
His stance indicates his belief in distributed leadership as opposed to centralizing authority among a handful of stakeholders.
ETH price target $5,000
Despite the philosophical debate going on, Ethereum has gained market strength. ETH surged past $4,500 in the last 24 hours and rose by over 3%. At the time of writing, the token is trading at $4,478.56 with a $540 billion market cap and a daily trading volume of over $45 billion, according to CoinMarketCap.
Technical setups support additional gains. According to TradingView data, the Ethereum RSI is at 62 and rising, with a bullish divergence on the MACD. Ethereum has rebounded off a key trendline near $4,000, and analysts are suggesting a new bullish channel.
Ethereum price chart. Source: TradingView
If the momentum persists, ETH may reach $5,000 by the end of October. Projections also point to targets of $7,000 and $9,000, with extreme bullish scenarios placing Ethereum above $11,000 before year-end.
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