0 sats \ 4 replies \ @Scoresby OP 6 Jun \ parent \ on: How much bitcoin owned by ETFs is too much? bitcoin
Good points. Perhaps I should have phrased the question this way:
How much bitcoin owned by a single entity could cause problems for Bitcoin?
(I didn't put it like that because it is not as snappy and I wanted to put it in the context of the etfs)
Keeping in mind that bitcoin exists in the freest market there is (anyone can buy it who finds a seller), my question is do you think there is an existential threat to bitcoin if one entity were to hold 10 million btc?
Nope. Bitcoin is not a democracy.
Might cause problems for the world, but generally, the more inequality there is in bitcoin, the better, because long term superwhales inevitably must hodl.
https://heaviside.substack.com/p/210-years-of-darkness-on-bitcoin
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Economic nodes play a big role in bitcoin. A node that has the private keys to 10 million btc can say that it will run a particular hard fork and can produce 10 million btc worth of sell pressure on the legacy chain. While I understand that bitcoin is not a democracy, this sort of sell pressure does have an influence on how these things play out.
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Think about it this way; if there was a single entity that held 10 million btc and they supported a fork that most bitcoiners didn't, a miner would have to think very carefully about which fork they mined on. Miners have real costs (energy). Faced with an entity that could depress the price of the legacy fork to such a great degree, it is unlikely any miner could weather that economic storm. Many would mine the new fork.
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But back to my point, even in the worst case, this is just another shitcoin. Even if it is dominant for 1000 years, eventually it would collapse.
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