Topic: Aren't we the reason why BTC is becoming too much centralized? - page 3. (Read 492 times)

All have the thought, also when crypto-currency withdrawal was banned in my country, that is you cannot withdraw or exchange bitcoin/crypto-currency to Fiat -naira- into any local Bank, this caused so many panic sells in my country, when many alternative lives on till now on how to go about it, I think we have given the government reasons to suggest more control wild dreams. Also the case of Elon musk is one am tired to even think of how we even got into that shoe, Influencers practically owning the success and has the failure road map of a crypto-currency.

There will always be people in the market that will panic sell. Others are aware of them. They also starts selling so that they can keep their profit and then buy when the crash is over after most people sell their coins. This is how the market works. No one cares if it is becoming centralized or remains decentralized. Right now most of the people are here just for making profit. A sad truth. By the way, I was expecting this thread to be about how the government are slowly imposing small policies that will eventually make bitcoin somewhat centralized.

There's a phenomenon that has been created in the last few years at least, and it's the fact that any kind of news means everyone should act in the same way the news are. Positive news? Everyone buys. Negative news? Everyone sells.

This is quite bad for the market, but I think it only happens because we're still few inside the market and it's still pretty easy to manipulate. And then, if you think about it, institutions who hate BTC actually love these kind of fluctuations. A wildly swinging market keeps some serious investors away from it.

We're to blame for this stuff for sure. I stopped taking action based on news a very long while ago, and my portfolio is healthier than ever before. As long as we don't fall prey to those manipulations, the phenomenon will be gone in no time. Why do we care about Musk's opinion? Why do we care about the FUDders? All I care is that Bitcoin brings me the financial independence I need.

Why are we measuring centralisation or decentralisation using the price movement and fluctuations? Just because people panic sell it doesn't means btc is centralized. When we talk about decentralisation of control, we talk about the ability to make transaction without any central authority and this quality of Bitcoin can never really be compromised. I am pretty much sure even Satoshi Nakamoto would have never thought of Bitcoin and it's price volatility due to FUD. He was concerned only about the transactional aspects.

You're so damn right! People go on and on about how Musk or other public figures manipulate the price of Bitcoin, but it would've never happened if people weren't so damn stupid and didn't swallow the bait. The human factor, emotions - this is the thing that makes, let's call it pseudo-centralization. Yes, there's no third party involved in price regulation, but people think the same, act similarly, that's why we are in this kind of situation today.
Hopefully, soon people will become more familiar with cryptocurrencies and won't make the same old mistakes.

I understand the emotions but that was never Satoshi's vision to have all the bitcoins as evenly distributed as they can be.

And this brings us to the decentralization part, you've said a lot of times we, we, we. There is no we, every single person in this whole world has a choice, of selling, buying of dumping, or holding, and unless you store your coins in some exchange there is nobody that can force you to do so. Despite the negative picture you're painting all of those users who have betrayed have done it at their own choice. Tesla, Micro, Winklevoss, or 50 Cent all have bought coins somebody has sold, there needs to be a buyer for this and this is the essential stuff in bitcoin distribution if miners wouldn't sell there would be no bitcoins to be distributed if people wouldn't part with their bitcoins there would be no services offering bitcoin payments (although this last one is going down the drain).

You have bought bitcoins too, right? Maybe on a smaller scale model, all us holders have done the same, rather than leaving 200k satoshi for everybody we're centralizing the coin!

If some entities gobbling up all bitcoins and the masses are selling them for pennies, it means one thing, the main thing that gives bitcoin value is diminishing, the trust is not there anymore, and I see it as a normal thing, as painful as it is, if nobody trusts the coin and dumps it, of course, it's normal for the value to go down, otherwise we would have had 1 billion altcoins with 1 trillion supply, worth each one a billion. This is true decentralization, everyone decides for himself and the entire userbase decides the price, if the bad guys want to buy all the coins and there is trust behind every coin they must be prepared to cough up all that money, will they manage to achieve such a thing it simply means the rules of the economy have prevailed, every asset has a price!

And if they do manage to end their pokemon bitcoin hunt by getting them all, what's stopping us to start again with a new coin? We are ten times richer and they are ten times poorer holding coins nobody wants 

Ok, I accept that we paid the price to get towards progress and adaptation. But then, why are they increasing the price of BTC? They should either dump it completely and keep it lower because then, these institutions will have a very fair as well as ranged BTC in order or buy from very low prices in futures and make much better returns.

There could be some weight to that, although you need to remember that not all of us are inclined to sell at a loss given that we know that most of these news are not news anymore, and just a ploy to push people to sell in order to move the price. Also, I don't think those sell-offs instigated by China and Elon Musk doesn't mean we're giving away our coins to the wealthy institutions, especially if there isn't really anyone buying those coins in the market. Perhaps in some instances, it is true, but for the most part I think it is not.

No, I think that's wrong thinking. You should never say that bitcoin is no longer decentralized just because someone manipulated its price in the market. Keep in mind that the bitcoin market is still in the process of growing and developing over time. They can toy with the price because it is quite financial while it doesn't change the decentralized nature of bitcoin. What the OP meant was that bitcoin users' thought and reaction became centralized because of the whale and FUD..

The difference between experienced investor and inexperienced investor (newbie investor) is how they survive FUD and whale game. It is clear that experienced investor will choose to stick with all the bitcoin they own because in reality the price continues to grow and reach new milestone over time.

I think it's natural because if the news will have an impact on the crypto community, of course there will be panic. if we take the example of china ban bitcoin. what about binance? and many other big exchange there and the miner also. there will be price changes from that issue. Therefore, I think we need valid news, not just FUD. in bitcoin FUD and fake news still possible get hype from people.

What if we prefer peace over war? Then there wouldn't be any need for military and additional billions around the world wouldn't be spent on such an useless things. We are the reason of everything, without doubt, of both, good and bad.

The problem is that the quality of new investors is very low. I mean that majority of people who invest in bitcoin actually don't know what it is, don't support the project and have false/wrong imaginations about it. Some people still think that word blockchain means the platform blockchain.com so...

Just have a look at reddit, check some posts there, you'll clearly see that people want to become rich overnight and when they see some % fall, they start to sell. When one sells at 5% and others follow, then price becomes 6%, those who waited before 6% and saw 7%, think that it's better to sell now than later and it's like chain on chain, so, finally we get rise and fall.
The fac that you discovered that we are the reason, changes nothing.

While it is true that panic selling is a problem in the market at the end of the day people have the right to choose what they do with their bitcoin and if their decision is to panic sell then this means they do not really understand bitcoin and its purpose, this plays against us but at the same time it was inevitable that those institutional investors came to the market and tried to manipulate things to their advantage, something that is not new in this market as whales have been trying to do the same as well.

Being effecting by people by speech and tweets is what we can see on any market not just bitcoin and cryptocurrencies. For example, I remember a few years ago people were following Trump's twitter page and looking for gold signals to get some fundamental news. That's what some strong people do, they release some fundamental news via twitter or other social media and waiting for people to follow them, here they will get advantage from the market by manipulation the price and this is nothing to do with bitcoin centralization. However, recently, there were too much attention to Elon Mask and his twitter page, this made people think he is actually reason for any pump/dump in the market not anyone else.

I think that one problem is that there are too many people driven into crypto trading or even investing, people who don't know nor care what crypto is as long as it brings some easy money.

And a derived problem is that many trading wannabes have no idea what they're doing, and when a news with potential to change the trend, or (even more) if a whale sells then spreads FUD, they're completely lost. And since they have no idea what's all this, they will sell, even if it's at a loss.

But as already pointed out on the replies here, the number of people selling bitcoin and also the amounts are rather small and a vast majority seems to be HODLing.

Will this result in small volumes affecting heavier the price? Probably.
Is this "centralization"? I am not sure. I wouldn't say so.

Bitcoin is not decentralized anymore. There are few people manipulating the market which isn't good for small investors. If things are continue to go like this then soon it will be a currency of rich people only and it will affect small investors very badly. Stop selling your coins no matter what.

Judging by the supply available on exchanges, most people are actually hodling, so the selling is mostly done by short-term speculators who will instantly make trades based on the sentiment of the news, regardless if those news posses something fundamental or not. And this FUD is not only causing the price drop by making people sell, it also turns away potential buyers, so price growth starts stagnating, and speculators decide to sell when they see that the hopes for price growth are disappearing.

What is an indisputable fact is that most Bitcoin investors only want a profit - and the problem (if we can call it that) is that some of them invest with the goal of short-term profit - and therefore react to any news with panic sales to protect their investment. This is the price we pay with the constant entry of new people who do not understand BTC well enough and are very susceptible to any news served to them through the media.


I fully understand you in your thinking, and I agree that more and more BTC increasingly becoming the property of wealthy individuals, and thus centralizing and in some way becoming inaccessible to ordinary people. From the publicly released data of all companies and funds that have invested in Bitcoin so far, they currently hold just over 8% of the max supply - but I believe that is much more considering there are a lot of investments that are not public.

Yet the market is completely open, anyone can buy and sell BTC whenever and however much they want - and I have said so many times that ordinary people have 10+ years to invest in BTC, who to blame for not doing that? Satoshi has given everyone an equal opportunity, those who are poor and have only a few $ in their pocket, to those who have billions - now only those who are a little richer can afford 1 BTC - but that is the price of progress and adaptation.

can't do anything with that, that's just a nature of human to be afraid of incoming danger same thing happened in the stock market as well and
it's not such a rare sighting for a stock to get dumped due to fud just like crypto.
It's just the bigger capital you have the faster you grow your capital and that's how it is, not to mention these whales buying the dip also with high risk
while the people who sold at the bottom I guess happy enough that their money get "saved" and thinks that it's necessary cut loss.
One thing important though, I keep accumulating crypto so i'm not one of the people who helps centralizing btc.

I think that there's a misunderstanding.
Bitcoin centralization/decentralization has nothing to do with the Bitcoin price or the market trends.
Decentralization of BTC doesn't mean equal distribution of BTC among as many people as possible.
Decentralization means that no person or entity can control the blockchain and decide which transactions should be confirmed and which should be reversed.
The concentration of more BTC among a smaller amount of crypto whales and companies has nothing to do with decentralization or the way Bitcoin Core blockchain works.This is just how the market economy works.
Money/capital gets concentrated in the hands of a few and the majority of small investors/traders end up losing money/capital.

Maybe it is time for people involved in the crypto world to calm down whenever the bad news release does not impact the price. If we can do that, I am sure those who release the bad news about crypto will think that the crypto community is a solid people who do not think about them. So their strategy to make people in crypto will not work and they will use the other strategy to make us panic again. Even if they prohibit bitcoin in their country, that does not mean bitcoin or crypto will stop because I am sure that the other country will still support bitcoin and crypto. We can try to let them say anything they want, but we need to calm down.