My friend, Carlos, having read the above and messaging me:
>are you concerned how a ton of BTC is held by a small amount of users?
>like concentrated amount a small pool of ppl?
>so if they sell BTC tanks?
*So I responded…*
“yeah this article is very misleading, i can break down every one of their points
this will be fun here we go
**#1 “This inherent concentration makes bitcoin susceptible to systemic risk and also implies that the majority of the gains from further adoption are likely to fall disproportionately to a small set of participants.”**
so, they clearly haven’t looked at the trend which would easier disprove this. It’s getting less centralized as more people participate, not more centralized. they would need supporting evidence to back this claim since the evidence ive seen suggests the exact opposite
other than mining pools, but even mining pools are debatedly decentralizing since anyone include you and me can join them to make a profit. Pools are where everyone pools together mining power into a conglomerate so that you can get paid since if you tried mining alone you’d never mine a single block in 1000 years
as far as mining pools centralizing risk, the china ban kind of showed thats not an issue. Mining took a rocket to the chest and it came back like that metalic android from terminator 2
**#2 Researchers found the biggest 10,000 bitcoin holders held around 27% of the total 18.6 million coins in circulation at the end of 2020, with a high degree of concentration among crypto exchanges and so-called miners—those that secure the bitcoin blockchain in return for freshly-minted coins.**
this is kind of what i mean with trends. 10,000 is waay up from where it was and rising. and 10,000 is VERY decentralized, lol, especially if those are exchanges and miners
exchanges aren’t gonna dump the market, they’re literally holding the coins for millions of people!!
even if one did there’s thousands and many of them are giants, very decentralized
i mean, that’s like saying what if wall street as a whole just dumps on us??
its like dude they are making the trades for 100+ million americans, they cant just dump everyones stocks without their permission
what are we even talking about??
**#3 The top 10% of miners control 90% of the bitcoin mining capacity, with just 0.1%—about 50 miners in all—contributing 50% of this.**
so yeah this is the mining pools thing again. it’s just a long tail graph, it’s the same as saying “coinbase, kraken, binance, gemini, bittrex, and bitfinex exchanges hold the majority of the exhange volume!”
its like yeah i know. chase also like 20% of the entire banking sector
then wells at like 10%
then i dunno US Bank at 5%
eventually you get to the top 10% have the vast majority of people’s money and then there’s thousands of tiny banks
mining pools are made up of many individuals mining. they aren’t going to agree to tank their own network… they’d just switch to a mining pool that isnt evil
**#4 and final: “pointing to many of the early mined bitcoins that are likely all controlled by bitcoin’s mysterious creator Satoshi Nakamoto but are spread across some 20,000 different addresses.”**
Satoshi’s coins are the only real risk, and that’s estimated to be around 500K-1MM coins, or up to 5% of the supply
which is not a lot and with the liquidity these days would most likely be absorbed pretty easily
might dip us down like 25-50% for a few months worst case
thats assuming he DUMPS
which he wouldnt
he would sell here and there over time so as to get a decent value
hes not gonna be like
you know what i wanna do
sell my coins way cheaper than i have to
ive got an emergency and i need my 100 billion TODAY
>yea haha i dont think a person typically needs to withdrawl $1 billion in cash at the ATM