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Bitcoin’s Centralization Threat: How Financial Giants and Coinbase Risk Undermining the Revolution
- The rise of financial giants in the Bitcoin world is a threat to decentralization.
- Coinbase holds 11% of the Bitcoin supply, posing a risk of centralization.
- This risk has worsened since the approval of Bitcoin Spot ETFs in early 2024.
- Most public companies holding Bitcoin trust Coinbase and don't even make an effort to secure their BTC themselves.
- The FBI has raised concerns about North Korean hackers targeting the thousands of units of BTC held by American Bitcoin Spot ETFs, which are centralized on Coinbase.
- If Coinbase were hacked, the entire Bitcoin industry would be severely impacted.
- The collapse of FTX would be a laughing matter compared to the risk of the end of the Bitcoin revolution.
- Individuals who have their private keys to their Bitcoin can't do much to mitigate the risk of centralization by Coinbase.
- The Bitcoin revolution highlights the importance of decentralization in enabling humans to regain power over their data, social networks, and other areas.
- Bitcoin as a store of value vs. Bitcoin as a medium of exchange is a clash that will play out in the years to come.
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