The post Will corporate ownership of Bitcoin lead to its centralization and loss of freedom? appeared on BitcoinEthereumNews.com.
As large corporations accumulate more Bitcoin, there is a risk of centralization, market manipulation, and increased government regulation that could undermine the original principles of decentralization and freedom in the future. In recent years, we have seen huge attention from large corporations towards Bitcoin, the celebrated currency for years as decentralized and peer-to-peer. It was the currency’s ability to function outside of central banks, governments, and large financial institutions that attracted people toward Bitcoin. Bitcoin was designed to be a decentralized digital currency owned and used by anyone anywhere in the world without the help of an intermediary. The increasing interest and participation of major corporations in the Bitcoin ecosystem raise concerns about its future in terms of decentralization and freedom. Rising corporate influence on Bitcoin Now, many giant corporations include Bitcoin on their balance sheets. According to CoinGecko companies like MicroStrategy hold over 444,262 Bitcoins, while Marathon Digital holds over 26,842. Marathon Digital is a Bitcoin mining company and owns 40,435 Bitcoins. Even Tesla holds 11,509 bitcoins. In addition, Galaxy Digital holding companies with over 15,449 Bitcoins, Coinbase holds over 9,183 Bitcoins, Bitcoin mining companies like CleanSpark hold around 6,154 Bitcoins, and Hut 8 also holds 9,102 Bitcoins and many more. This rising corporate involvement is an indicator of how Bitcoin is gaining importance in business strategies-whether as a store of value, hedge against inflation, or financial diversification tool. These companies can hold a big portion of the total supply since they acquire Bitcoin. For the simple fact that the total supply of Bitcoin is capped at 21 million, there’s the likelihood that a few companies own a large portion of Bitcoin that could significantly alter what the original intention of Bitcoin is-to be decentralized to everyone. Bitcoin becoming centralized This means that one of the most important concerns with this increase in corporate ownership…