Bitcoin & Centralization | Bitcointalksearch.org

Linkkoin

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Quote from: Wysi on January 17, 2020, 10:12:39 AM

That's true it's already in progress there are numerous bounty and ICO who don't give out their details but request users for KYC even for bounty participants. I think this is a gradual step towards the centralization which is against the whole concept of cryptocurrency and if this continues then crypto will become just like centralized wallets and digital payment method.

Of course without privacy, just like with wire bank transfers. They would explain, that without this fighting against pump and dump (what is banned on stocks) is virtually impossible and that cryptocurrencies cannot be widely adopted thanks to their volatility caused by P&D.

And once it is done, we might even face a situation that trading cryptocurrencies above some threshold/trading volume (or trading specific cryptos) would require you to obtain a state-issued broker license. Only having such license uploaded to exchange in a form of KYC would unlock trading limits.

Wysi

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Quote from: Linkkoin on January 17, 2020, 06:41:43 AM

Quote from: puertorikosena on January 17, 2020, 05:50:59 AM

Perhaps centralization will solve the problem of mass adoption of cryptocurrencies, but then the whole point of using cryptocurrency as a whole is lost. Therefore, the struggle between state regulators and decentralized systems will be long and victory will not be on the side of the state.

Anyway, spreading the scope of legislation related to cryptocurrencies leads to some sort of centralization gradually. Do not be surprised if in the next couple of years authorities would require the same type of identity verification for wallets as now for opening bank accounts.

That's true it's already in progress there are numerous bounty and ICO who don't give out their details but request users for KYC even for bounty participants. I think this is a gradual step towards the centralization which is against the whole concept of cryptocurrency and if this continues then crypto will become just like centralized wallets and digital payment method.

Linkkoin

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Quote from: puertorikosena on January 17, 2020, 05:50:59 AM

Perhaps centralization will solve the problem of mass adoption of cryptocurrencies, but then the whole point of using cryptocurrency as a whole is lost. Therefore, the struggle between state regulators and decentralized systems will be long and victory will not be on the side of the state.

Anyway, spreading the scope of legislation related to cryptocurrencies leads to some sort of centralization gradually. Do not be surprised if in the next couple of years authorities would require the same type of identity verification for wallets as now for opening bank accounts.

puertorikosena

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Perhaps centralization will solve the problem of mass adoption of cryptocurrencies, but then the whole point of using cryptocurrency as a whole is lost. Therefore, the struggle between state regulators and decentralized systems will be long and victory will not be on the side of the state.

Tary12

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for the government, bitcoin is very detrimental and can be called anti-government. but there are also many people who really like bitcoin. hopefully bitcoin can be a decent place in the government and can be used as a whole.

Cimmy_revenger

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Quote from: mrquackquack on January 07, 2020, 08:55:55 PM

While most people tend to market bitcoin as being anti centralization, anti govt. so on and so forth, it occurred to me that it might just be centralized too. Seemingly we still have whales out there hoarding not just 1 5 or 10 bitcoins and its many many forks mind you (free Extra money) but with thousands upon thousands of bitcoins. So in all of this it's kind of a scary dilemma. What are you thoughts and comments on this seemingly true fact? Thoughts and comments are more than welcome.

decentralization does not mean not being subject to government regulations.
the creation of decentralization of many conventional banks that manipulate currencies with a variety of reasons.

outatime1

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There are a bunch of whales potentially with big wallets but that should change as they sell to lock in gains. It will eventually allow the 21 million coins to be distributed among more people over time.

CarnagexD

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Quote from: mrquackquack on January 07, 2020, 08:55:55 PM

While most people tend to market bitcoin as being anti centralization, anti govt. so on and so forth, it occurred to me that it might just be centralized too. Seemingly we still have whales out there hoarding not just 1 5 or 10 bitcoins and its many many forks mind you (free Extra money) but with thousands upon thousands of bitcoins. So in all of this it's kind of a scary dilemma. What are you thoughts and comments on this seemingly true fact? Thoughts and comments are more than welcome.

The whales can definitely manipulate the climate of bitcoin but not to an extreme extent that fiat is being manipulated by the top 1% of the richest. The whales can pump or dump but can only change bitcoin's flow by hundreds and rarely thousands of dollars. This is because of how bitcoin is secured and volatile, along with other factors that affect bitcoin more than these whales do.

Amel

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Quote from: blckhawk on January 10, 2020, 12:09:17 AM

Centralization to me is not within the shareholders, but instead in the nodes that run the network, which is.more of a concern to me rather than these whales. China has established a centralized network of nodes, consisting of more than 50% of the network. And outright ban by the Chinese government would bring adverse impact on the market, regardless of these whales.

Yeah right, I think like that, everyone's perspective is different about this centralization. But I am very confident that centralization in general is not seen from the shareholders, but from how the network is run, regulation is also a factor of centralization.

Wintersoldier

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Quote from: chaoscoinz on January 10, 2020, 07:17:14 AM

I really don't think that Bitcoin is centralized yet it is the mining share that has become centralize instead, because in order to really mine you need a warehouse of rigs just to make a good profit. Early birds who got within mining early on happen to culminate the field and they took over. This is way back when people were scared of a 51% attack. This is the sole reason I believe another cryptocurrency will eventual be poised to replace Bitcoin as the gloabl cryptocurrency, being that the Proof of work algorithm has been rendered outdated and rather costly to continue it's use. More Eco friendly and simpler algorithmic consensus solutions have been achieved like "Delegated Proof of Stake".

In addition, having this consensus is quite obsolete as you said to the point that many cryptocurrency is already utilizing more efficient consensus that they are using to efficiently generate transactions which mainly attracts more users to adopt to that particular currency. In my opinion, bitcoin being centralized is just based from the market manipulation which in the first place, indirect centralization because they really not control the funds you have. Thus, allowing you to freely decide for your choice.

Lanatsa

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Quote from: mrquackquack on January 07, 2020, 08:55:55 PM

While most people tend to market bitcoin as being anti centralization, anti govt. so on and so forth, it occurred to me that it might just be centralized too. Seemingly we still have whales out there hoarding not just 1 5 or 10 bitcoins and its many many forks mind you (free Extra money) but with thousands upon thousands of bitcoins. So in all of this it's kind of a scary dilemma. What are you thoughts and comments on this seemingly true fact? Thoughts and comments are more than welcome.

Having some whales doesnt signify centralization.It isnt really that equal nor a valid presumption.
There would be always people who would really have much more coins that on other people since we
know that we do differ when it comes to financial capacity.Jelousy isnt a bad thing but we shouldnt
conclude about centralization even though these whales can affect price but doesnt mean they can
control the entire market as they like.

chaoscoinz

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I really don't think that Bitcoin is centralized yet it is the mining share that has become centralize instead, because in order to really mine you need a warehouse of rigs just to make a good profit. Early birds who got within mining early on happen to culminate the field and they took over. This is way back when people were scared of a 51% attack. This is the sole reason I believe another cryptocurrency will eventual be poised to replace Bitcoin as the gloabl cryptocurrency, being that the Proof of work algorithm has been rendered outdated and rather costly to continue it's use. More Eco friendly and simpler algorithmic consensus solutions have been achieved like "Delegated Proof of Stake".

bitvalak

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It seems you misinterpreted decentralization and centralization.
What you're describing is capitalization, where anyone who has a lot of bitcoin can control everything about bitcoin.
Though it's not like that, even if you have hundreds of bitcoins it will never happen like that because bitcoin doesn't depend on anyone. There is no third party that can intervene in your bitcoin assets.

sovie

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Bitcoin market is not only about trading where whales or people who owns massive bitcoins are ruling, its a complete financial ecosystem where everyone has complete control of his funds. Crypto exchnages are no way decentralized rather they are centralized too. Do not look at bitcoin only from perspective of buying high and selling low.

Wind_FURY

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Quote from: mrquackquack on January 07, 2020, 08:55:55 PM

While most people tend to market bitcoin as being anti centralization, anti govt. so on and so forth, it occurred to me that it might just be centralized too. Seemingly we still have whales out there hoarding not just 1 5 or 10 bitcoins and its many many forks mind you (free Extra money) but with thousands upon thousands of bitcoins. So in all of this it's kind of a scary dilemma. What are you thoughts and comments on this seemingly true fact? Thoughts and comments are more than welcome.

I already said this before, but if financial institutions, exchanges, and custodial services control most of the coins in circulation, then Bitcoins as a permissionless, censorship-resistant cryptocurrency would fail.

blckhawk

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Centralization to me is not within the shareholders, but instead in the nodes that run the network, which is.more of a concern to me rather than these whales. China has established a centralized network of nodes, consisting of more than 50% of the network. And outright ban by the Chinese government would bring adverse impact on the market, regardless of these whales.

hatshepsut93

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People often talk about whales as if it is some hivemind that manipulates Bitcoin and can even control it, but it's far from the truth. Whales are individuals, many of them probably don't know each other, many of them are probably anonymous, and they can have very different views on Bitcoin - some might fully believe in its cause, others might be just here for profits, some think how to short it, others want to buy more and so on. So, I'm absolutely not concerned about whales being a centralizing factor in Bitcoin.

crossabdd

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actual information referred to in decentralized system on bitcoin is not from who holds most bitcoin. or whales that have thousands of BTC. but more than a personal control center. Bitcoin does not have a central control. but every bitcoin holder is in control of their assets. no matter they have 1 million BTC or 1000 satoshi. full control is in the holder. as well as privacy, large transactions. all not monitored by the government. all transparent, but there is no centralization of the middle man. all goes under personal control. so this is purpose of decentralization. if it's about price. then all crypto is in whales centralization. it's not about price alone. but more on benefits and uses.

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Quote from: mrquackquack on January 07, 2020, 08:55:55 PM

While most people tend to market bitcoin as being anti centralization, anti govt. so on and so forth, it occurred to me that it might just be centralized too. Seemingly we still have whales out there hoarding not just 1 5 or 10 bitcoins and its many many forks mind you (free Extra money) but with thousands upon thousands of bitcoins. So in all of this it's kind of a scary dilemma. What are you thoughts and comments on this seemingly true fact? Thoughts and comments are more than welcome.

I don't believe that whales manipulate the market. I remember something about the first 100 richest addresses having the vast majority (90% or something) of BTC. However, most of these addresses don't belong to people, they belong to exchanges and other crypto companies. They move money sometimes, but it doesn't affect the prices. And this is still a big amount of people that would have to agree to make a big move, often without knowing who is who (we don't know to whom some addresses from the list belong).
Bitcoin is thus but centralised, at least not in terms of coins distribution. Mining is, and it is a bit disturbing, but it's a suicide for a mining company to attempt to affect the market.

Wintersoldier

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Quote from: mrquackquack on January 07, 2020, 08:55:55 PM

While most people tend to market bitcoin as being anti centralization, anti govt. so on and so forth, it occurred to me that it might just be centralized too. Seemingly we still have whales out there hoarding not just 1 5 or 10 bitcoins and its many many forks mind you (free Extra money) but with thousands upon thousands of bitcoins. So in all of this it's kind of a scary dilemma. What are you thoughts and comments on this seemingly true fact? Thoughts and comments are more than welcome.

I think you misinterpreted the meaning of centralization but in some points are true, because being decentralized in bitcoin is having the freedom for a person to have their bitcoins and to avoid being controlled by any third parties, but thinking deeply about being controlled, in market, if we indulge ourselves too deep to earning profit, we could still be controlled by the whales who set the market price of bitcoin, though, in fact, we really have the freedom on deciding what to do to our bitcoin. So to avoid being confused, these technical terms should remain properly used, or explain further to avoid misconception.

Topic: Bitcoin & Centralization (Read 636 times)