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Bitcoin expert warns of centralisation dangers

Bitcoin expert warns of centralisation dangers

GrafaGrafa2024/12/12 09:10
By:Liezl Gambe

Bitcoin (CRYPTO:BTC) educator Anita Posch has raised alarms about the centralisation risks associated with government and corporate actions regarding Bitcoin treasuries. 

Her concerns follow a suggestion from Michael Saylor, Chairman of MicroStrategy, who proposed that the U.S. government should purchase 20 to 25 percent of the Bitcoin network to catalyse its development. 

Saylor made this statement during a recent interview with Yahoo Finance, where he advocated for significant U.S. investment in Bitcoin.

This call for increased government involvement comes in the context of Republican Senator Cynthia Lummis’s plan, which involves purchasing one million Bitcoin, representing approximately 5% of the total supply. 

Saylor’s proposal would quadruple that amount and suggests a desire for the U.S. to exert influence over Bitcoin’s protocol development.

“Governments or corporations holding large amounts of bitcoin could try to influence human consensus and change the code to their wishes,” Posch cautioned.

“And please stop with the idea that Bitcoin will end wars. It won’t,” she also criticised the notion that Bitcoin could end wars.

While Saylor did not explicitly claim that Bitcoin would resolve international conflicts, he implied that U.S. influence over the network could mitigate tensions with countries like China and Russia.

“Buy 20 or 25% of the Bitcoin network on behalf of the U.S. government, catalyse the development of that world reserve capital network,” Saylor suggested, indicating that this could lead to foreign nations selling their assets to acquire Bitcoin.

Posch’s warning reflects broader concerns about centralisation within the Bitcoin ecosystem, including issues related to mining oligopolies and custody practices.

MicroStrategy currently holds 423,650 BTC, which is more than 2% of the total supply. 

“I’m going to be buying more bitcoin. I’m going to be buying bitcoin at the top forever,” Saylor expressed his commitment to continue purchasing Bitcoin.

At the time of reporting, the Bitcoin price was $100,538.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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