Thread - Nostr Hypermedia

ภ๏รtг๏ภคยt Admin@nostrich.club 10 months ago

Because it was. I only have an 8th grade education and have issues clearly getting my point across to those much smarter than myself. How they could exit undue influence; 1. Price Manipulation * Pump and Dump: Imagine a group of whales (large Bitcoin holders) suddenly buying up a lot of Bitcoin. This could create a frenzy of buying, driving the price up artificially (the "pump"). Once the price is high enough, they sell off their holdings, causing the price to crash (the "dump"), leaving many smaller investors with losses. * Spoofing: Whales could place large buy orders to create the illusion of high demand, encouraging others to buy in. Then, they cancel those orders, causing the price to drop. * Wash Trading: Whales could trade Bitcoin among themselves to create the illusion of high trading volume, making the market seem more active and liquid than it actually is. This can attract unsuspecting investors who believe there's a lot of interest in Bitcoin. 2. Limiting Access * Hoarding: If a small group holds a large portion of the Bitcoin supply, they could effectively control the market. They could refuse to sell their Bitcoin, creating artificial scarcity and driving the price up even further. This would make it difficult for ordinary people to acquire Bitcoin. * Restricting Transactions: In the future, if Bitcoin becomes more widely used, these large holders could potentially collude to limit the number of transactions or set high fees, making it difficult for others to use Bitcoin for everyday purchases. 3. Regulatory Influence * Lobbying: Large Bitcoin holders could lobby governments to create regulations that favor them, such as tax breaks or favorable treatment for Bitcoin businesses they own. This could give them an unfair advantage over smaller players in the market. It's important to remember that these are just potential scenarios. The Bitcoin market is still relatively young and volatile, and it's difficult to predict exactly how it will evolve. However, the concentration of Bitcoin ownership is a real concern, and it's something that the community needs to be aware of.

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Replies (2)

vinney...axkl vcavallo@vinneycavallo.com 10 months ago

All that does is move the price some amount, and that's only if other people are still willing to trade sats for fiat. When the fiat illusion dies, all a "Bitcoin hoarder" will be able to do is buy things from fellow bitcoiners.

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ภ๏รtг๏ภคยt Admin@nostrich.club 10 months ago

However, even in a Bitcoin-centric economy, large holders could still exert influence, although the how changes: * Control of Essential Goods/Services: If a large holder controls a significant portion of the supply chain for essential goods (food, energy, etc.), they could effectively dictate the terms of trade. They might demand a higher "price" in Bitcoin for their goods, not in fiat terms, but in relative terms. They could effectively create a tiered system where those with less Bitcoin have limited access to essential resources. * Influence over Development: Even without fiat, large holders could still influence the development of the Bitcoin network. They might fund development teams that implement features favorable to them, or they might try to block proposals that threaten their holdings. This could impact transaction fees, privacy features, or even the fundamental rules of the protocol. * Early Adoption Advantage: Those who hoarded Bitcoin early on would still have a significant advantage. They could use their larger holdings to acquire valuable assets in the Bitcoin economy, giving them a head start in building businesses or acquiring resources. This could lead to a concentration of wealth and power, even within a purely Bitcoin-based system. * Collusion and Cartels: Large holders could collude to manipulate the market for specific goods or services. They might agree to only accept a certain amount of Bitcoin for their products, artificially inflating the "price" of those products in Bitcoin terms. * Reputation and Trust: In a decentralized system, reputation and trust are crucial. Large holders might use their influence to build a reputation that allows them to command higher prices or better terms in Bitcoin transactions. So, while the mechanisms of manipulation change in a purely Bitcoin economy, the potential for manipulation still exists. Large holders could still exert influence, not by manipulating fiat prices, but by controlling essential resources, influencing development, or leveraging their early adoption advantage. The challenge remains the same: how to create a system that is truly decentralized and resistant to the concentration of power, even in a world without fiat currencies.

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