Has Bitcoin Finally Lost Its Decentralization? - page 5.

SquirrelJulietGarden

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Quote from: mrquackquack on August 30, 2024, 05:03:55 AM

Thats a question we all would like to know. Has Bitcoin been finally sold out to big businesses, corporations, investment groups and even countries??

The Pareto principle says 80% of bitcoin would belong to 20% Bitcoin owners. This principle works for many areas and cases, I believe it continues to work rightly for Bitcoin distribution too especially if we only count unlost bitcoins.

https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html
https://www.bitcoinmagazinepro.com/charts/hodl-waves/

If you use the second chart for HODL waves, and account for possible unlost bitcoins, you will see Pareto principle works.

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Has Bitcoin Finally Lost It's Decentralization?

No. Its decentralization still exists, with network hash rate distribution and with Bitcoin full node distribution.

https://buybitcoinworldwide.com/mining/by-country/
https://bitnodes.io/

pooya87

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You may be confusing bitcoin with fundamentally flawed altcoins such as ethereum.

This is one of the reasons why the Proof of Stake (PoS) protocol is fundamentally flawed. If someone controls a large number of coins of a PoS coin they gain a lot of power in that chain. Good news is that Bitcoin is using Proof of Work (PoW) algorithm not the flawed PoS that some shitcoins use. Which means it doesn't matter how much coins any entity has, it gives them no power over Bitcoin. The only thing they can do with large amounts of bitcoin is to influence the market and that's pretty much it.

Zlantann

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Quote from: mrquackquack on August 30, 2024, 05:03:55 AM

Thats a question we all would like to know. Has Bitcoin been finally sold out to big businesses, corporations, investment groups and even countries?? In the last few years these things have resonated louder than ever. Investment groups buying thousands and even millions worth of Bitcoin at a time, countries even making the once comical like currency its very own currency for everyday life. So the question once again is asked... Has Bitcoin Finally Lost It's Decentralization? Let us know of your thoughts and comments on this and thanks again.

Bitcoin is still decentralised because no single entity can claim to control it. But I cannot deny that the massive investment of some institutional investors such as the ETF providers would not influence the sector in the future. These firms are massively acquiring Bitcoin and might be able to influence the price movement with their inflow or outflows. But Bitcoin will always decentralised because there is a silent majority that is using Bitcoin without these centralised intermediaries. Like Nwada001 rightly said, the system will become centralised only if the government make policies that will promote censorship which might result in the blacklisting of wallets or addresses.

Nwada001

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How do big companies and investors buying and holding large amounts of bitcoin move Bitcoin from being decentralised to centralized? The amount of Bitcoin that those said organisations buy and hold is the only set of Bitcoin they have total control over.

The Bitcoin blockchain itself is decentralised, and it has not changed from that yet. Being decentralised means there is no central control over the network, like the developer of most alt coins can control and freeze your asset because it's in your wallet.

The only time I can argue and believe that Bitcoin has been centralised is if censorship is introduced and implemented, which actually is against the purpose of Bitcoin.

Charles-Tim

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Bitcoin network is not centralized. This is what we should related to centralization. Since many years ago were centralized exchanges and custodial wallets which are all centralized but the purpose of bitcoin to be used for P2P on noncustodial wallet has not changed. Also no organization is controlling bitcoin.

mrquackquack

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Thats a question we all would like to know. Has Bitcoin been finally sold out to big businesses, corporations, investment groups and even countries?? In the last few years these things have resonated louder than ever. Investment groups buying thousands and even millions worth of Bitcoin at a time, countries even making the once comical like currency its very own currency for everyday life. So the question once again is asked... Has Bitcoin Finally Lost It's Decentralization? Let us know of your thoughts and comments on this and thanks again.

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