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280 sats \ 6 replies \ @k00b 18 Aug 2023 \ on: Do large institutions threaten Bitcoin's decentralization or enhance legitimacy? bitcoin
Both.
That's true. Double edge sword. Let's hope the positive outweigh the negatives in the long-run.
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In what way do you think they threaten decentralization?
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They are centralized and powerful. The question wasn't if it's definitely centralizing. The question was if it threatens decentralization. They will seek more control over bitcoin than they deserve and that will "threaten" decentralization.
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The "frontrunning the institutions" thing creates an interesting phenomenon though.
We hold almost all the BTC and they own none or little; the earlier you got in, the more you have. And the earlier you got in, the more aligned you are with the Bitcoin ethos, the better you understand it etc. Statistically speaking, of course.
Much BTC is held by cypherpunks, anarchists and other anti-establishment folks.
If large institutions put their money in it, it will empower them, but it will empower the current holders even more. If BlackRock or similar put 2% into BTC, it will pump our bags 10x; you get the gist. Their money will become our money multiplied. The more power they try to gain, the more power they will give to us, making us harder to defeat.
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Your reasoning makes sense. I suspect it's a likely outcome.
I just prefer to assume we might be missing something for prepping's sake.
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This is my perspective as well.
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