Topic: Aren't we the reason why BTC is becoming too much centralized? - page 2. (Read 492 times)

Most of these investors found out about Bitcoin from a claim that it would give them profit. They don't have enough knowledge about how the community works. It really possible that these big influential personalities could control their decisions.

Its true that many investors are easily affected of negative news, influencers and FUD. They have a weak hands, probably lacking of informations on how things work on crypto.

Majority of panic sellers are new on crypto or plan to hold only for short term thus seeing the market in a situation they didnt expect lead them to sell at loss.

Thats why its a must to know what you're getting into to have your own understanding and decision. Negative news are quite normal, they just come and go but its up to us how to handle it.

Bitcoin is more decentralized when compared to any other cryptocurrency and there is nothing to worry about the centralization right now. A lot of the critics point to the fact that major mining pools such as F2pool, Antpool and ViaBTC control a large share of the mining hash rate. But what they ignore is the fact that not a single individual mining farm accounts to more than 3% of the total hash rate. And the miners can leave or join the mining pools as per their preference. So the stats for major pools are not very significant.

It’s everywhere and you can’t stop it. It is a normal thing that happens in every market, there are things that can happen and it will lead to the market either falling or going up, it’s just as it is and you can’t change it. Although I don’t think that’s a reason why the market would be either centralized or decentralized. And as for the big institutions, well that’s another thing, and I am aware that they have all been buying up  a lot of coins in the market. But, you also have to know that none of them would be ready to hold it forever.

There will still come a time when they will have to dump it ,and it will be retailers that will end up buying and it will still circulate. If they don’t, well, everyone is simply going to abandon it for them , there are already lots of other coins that people can invest in.

Centralization will always exploit decentralization, where there is control, there is power for those selfish people that want to rule something or anything.

On the one hand, it is easy, on the other hand, it is difficult to accuse newcomers that they want a quick and easy profit, because every investor would like a quick and easy profit. Another question is that the accumulated experience teaches that such a thing is rarely available and it is experience that allows you to avoid large losses from unsuccessful investments. But do not blame everything only for beginners, because panic sales are inherent in all markets with high risk, and the cryptocurrency market is included in this category, and if at first everything starts with profit-taking, then all this can end with sales in an effort to save at least part of the investment.

Well, you have a point @OP that, being influenced by institutions and whales to a great extent could form or make the system go into centralization with every individual,  the common man actually loosing his or her precious sats to institutions that could be monitored by the government. This already could be a failed scheme should we have the slightest government involvement as some sort of a strategy to actually get bitcoin away from the public. One thing I know fir sure about the government across tenors is that, they are never united. Each leader would want to be known for something unique and as such, wouldn't continue the plans and projects of the other instead, they abandon them and head for another.

Getting thy precious sats from the commo  man would be a very long and taking job to do and government can pass on this task from persons to persons, making it a failed endeavour already.

I think you're right to an extent, but perhaps in the future things will change. Like I said, I'm putting this in the perspective of USD going into the dirt, so people with money will look to put their net worth into something other than liquid cash. Middle class are a bit slower to diversify into other investments, but if they're forced to, I think they'll choose BTC over precious metals/stocks.

Thing that scares them is the volatility, but at some point USD becomes more unpredictable than crypto if you don't stop endless printing.

^ This is true because most of the newcomers in BTC investment are looking for this, they want an instant profit and all they had to want is to earn in a short period of time. Just like invested now and gain profit in the next day, that is not how BTC investment work, you should need to wait for a perfect time for that. However, regarding the punic sell, most again are those newcomers, they are very prone to this because we know that all of their concerns are profit in a short term.

Probably you are correct because we easily panic, that's the reason why the market can easily be manipulated by the whales. As of now, there's still not big improvement, crypto market is still a speculative market, we move on hype and FUD and that makes the price so volatile which makes it risky to invest.

However, since most of us want instant return, and it's possible in crypto, newbies are just too attracted to that reality, making them invest in a bull market, or at a peak instead of waiting for the price to dip before they'll invest.

As a result, whenever the price move opposite to their expectation, they panic as their focus on short-term profit.

I'm on a middle class and I understand the value of holding which I did since the last bull run, holding is not easy but if you are dedicated enough and know your goals for long term, that holdings can be easy for you. Don't blame yourself for the market being more centralized, you are just a small time player who always follow the trend and the whales, that's normal and we can't prevent this one. Government intervention are also growing, so we can expect a more centralized market especially when regulations take place.

A middle class would never go for hodling option TBH because they look for quick gains rather than long holds as they have a family they need to look after while also maintaining that "upper middle class" image in the society. Such people can't afford to buy 1 full BTC ATM because of its price of course, but they won't even buy a fraction of it after watching too many negativity spread in the markets as well as quick selloffs if they're new to this. They will fear of losing some % of their capital and then would need to redeem their fiat in loss.

Panic selling has been around in this industry ever since I can remember. And this does not apply only on new comers as what many people may say. Obviously most does this but there are some that actually know what they are doing or some that are invested on good insider groups. To clarify, even veterans sometimes sell out of panic depending on the situation and the type of fud being spread out. These cycle of events happen always and will do so for many years to come since it mostly is a great contributor in making this industry thrive. Better enjoy the volatility instead of hating on it which would do no one any good.

Now about the centralization, I do not think that big institutions alone can make bitcoin widely centralized since these big institutions themselves like to keep some things secret specially things that bring lots of benefits. Although centralization seems like a nightmare to any bitcoin enthusiast, sooner or later something just has got to give. And that obviously will be bitcoin since centralization is such a vital thing if we are to really make bitcoin get adopted fully world wide. But of course that won't mean it will be fully centralized since I do not think most crypto enthusiasts will agree to it. Specially now that more and more big names are intertwined with bitcoin. Anyway, only time will tell. We may not even be able to live long enough to see this happening for real. But just in case, there's still coins like monero, sovryn and more. So don't go stressing your self too much about this.

I think it was a property of the wealth in the past, and was, kinda, in recent times but with USD and other currencies beginning to crash, expect more and more of the middle class/averaging working man to start picking up on BTC, either as a long term investment or something they expect to use often. The poor can't afford the price swings like the rich can, but the middle class is usually a bit more resistant.

Exactly bro, i think the crypto community should be able to recognize this and stop being used by this big whales, people should learn to ignore whatever fud this guys will come up with and continue as nothing happened, especially something as little as a mare tweet from a none crypto OG can get people scared to the point of selling off their coin they bought with their hard earned money, by doing this, the crypto community appears vulnerable and also show that they can be easily manipulated into selling their assets. About time people change such behavior.

I think bitcoin is not being centralized as people gets influenced by FUD or commit panic selling, as you convert bitcoin into fiat, by then it will be consider as centralized as it gets converted into a centralized currency. Nevertheless, we should never tolerate falling into baits or FUDs no matter how big the influence of a certain individual is. You should make sure that your decisions are not based on assumptions or speculations alone, go ahead and work on it yourself so that you can have a firm decision when it comes to your investment.

Not to mention that besides the manipulation, they even celebrate this influencers getting in the market not knowing that they have an ulterior motive. Plus, decentralization won't last because companies won't stop getting into the market because there is an opportunity.

No matter what institutions and wealthy individuals buy through OTC, it is not possible to hide the outflow from crypto exchanges and the law of supply and demand increases the price. Besides, $35 000 is probably a lot of money for you and me, but for a fund with billions of dollars, it's actually a trifle - the current price for such players is not a problem - but things will change when the OTC market can no longer keep up with demand, and then we can expect the price to rise sharply.

Nothing in life is perfect, Bitcoin and everything around it should not be considered something that has no flaws - and people have always had some crazy need to twist everything they touch - it comes down to the fact that Bitcoin is not what Satoshi imagined, but it will be what those who use it in one way or another will make of it.

I agree with everything OP says. He is 100% right, but at the same time it is the reason why it is decentralized as well. If we all panic sell when Elon tweets that doesn't mean we are centralized, I understand that you think we are giving Elon a right to drop or increase the prices, but it is once again we the people who decide if we want to sell or not, Elon can't drop the price all by himself, that would be centralized, it is the people who make a decision and decided that they care about what he tweets, so it is still decentralized even while he has the power to up or down the prices with a tweet because We give him that power.

So instead of federal bank causing dollar to be worthless, it is Elon that decides on bitcoin and I know that sounds similar and make you think it is centralized but who does he get that power from? Us. Which is why it is still better than fiat.

  A whole lot of people see Bitcoin as Ponzi scheme and treat it as one so once the price drops the panic and sell of their coins. Overcoming FUD especially for newer investors is quite challenging and so selling comes first to their minds once any negative tweet or ban treat pops up against Bitcoin. I was once a victim of this it really took me a whole lot of decipline to put my emotions in order realizing Bitcoin is an investment.