It’s been a very long time since I wrote a weblog on this discussion board, not too long ago myself and one in all my shut pals SyntheticBear who doesn’t need to disclose the small print mentioned in some random chitchat session throughout night snack time, I assumed it could be helpful whomsoever studying it.
Inside be aware: This isn’t a whistleblower article or something to scare article. We simply wished to focus on the whole stuff we learnt so it will likely be helpful for somebody in some unspecified time in the future in time. [Hopefully, the article won’t be deleted]
Bitcoin was created to repair the damaged monetary system, however over time, centralized forces, politics, and manipulation have influenced its trajectory. Right here’s a deep dive into Bitcoin’s contradictions, strengths, and vulnerabilities.
- Banks lend out extra money than they really have.
- The 2008 monetary crash occurred as a result of this technique, creating cash out of skinny air.
- Bitcoin was created to unravel this drawback → A set provide, no middlemen.
🚨 Irony? Crypto exchanges & lending platforms are doing the identical factor!
- They lend BTC that doesn’t exist.
- Each 4–6 years, exchanges collapse as a result of individuals attempt to withdraw extra BTC than they really maintain.
- Examples: Mt. Gox (2014), Bitfinex (2018), Terra/Luna (2022), FTX (2022).
- This forces huge sell-offs, inflicting BTC crashes.
💡 Bitcoin shouldn’t be the issue, however centralized platforms recreate previous banking errors.
- Some builders wished to improve block measurement for extra transactions.
- Others (BTC Core) refused, saying it could result in centralization.
- This precipitated a tough fork → Bitcoin Money (BCH) was born.
🚨 Did BTC devs suppress the thought?[might be false too]
- Some say large gamers like Blockstream influenced the choice.
- Bigger blocks = Extra on-chain transactions = Much less demand for Lightning Community.
- If BTC had examined even a 2x or 4x block measurement improve, issues could be completely different at present.
💡 The block measurement cap limits Bitcoin’s on-chain capabilities, forcing individuals onto different Layer 2 options.
Bitcoin was designed to be decentralized, however mining is now managed by massive firms.
- Early BTC mining → CPU & GPU attainable
- Now → ASIC machines dominate, making solo mining inconceivable
- Few large gamers management BTC mining → Foundry, AntPool, F2Pool, Binance Pool, and so on.
- Mining is already centralized, however block measurement remains to be small? Why the double customary?
🚨 If ASIC centralization is suitable, why not scale nodes with bigger blocks and pruning?
💡 BTC’s authentic imaginative and prescient of “anybody can mine” is gone, however nodes stay decentralized.
- If mining is centralized, a authorities or company entity might take management.
- A 51% assault is feasible, however hasn’t occurred but.
- BTC’s safety is dependent upon its miners, but additionally on the incentives to behave.
- If a mining pool features an excessive amount of energy, nodes can reject unhealthy blocks.
🚨 BTC is resistant however not invincible. State-level assaults might disrupt its ecosystem.
💡 BTC’s survival is dependent upon miners staying trustworthy and incentives remaining robust.
It’s not {that a} 51% assault shouldn’t be attainable however the group can provoke a user-activated smooth fork to mitigate it. That was Satoshi’s genius not being depending on simply miners. By forking the chain
- Centralized exchanges don’t maintain all of the BTC they declare.
- When withdrawals exceed their reserves, they collapse.
- This has occurred repeatedly and precipitated market-wide panic.
🚨 Fractional Reserve Banking is being recreated in crypto.
- Leverage and artificial BTC create an phantasm of provide.
- When individuals panic, the system collapses each 4–6 years.
- That is not BTC’s fault however a problem of centralized custody.
💡 Not your keys, not your Bitcoin! Self-custody is the one actual solution to personal BTC.
- BTC was meant to be “peer-to-peer digital money,” however now it’s marketed as “digital gold.”
- Exchanges, miners, and massive firms now affect its course.
- Governments can regulate on/off ramps, proscribing monetary freedom.
- If BTC had been really free, block measurement experiments would have been allowed.
🚨 Is BTC a software for freedom or a managed simulation?
- If large gamers suppress block measurement will increase, what else can they suppress?
- If exchanges can create artificial BTC, is its shortage actual?
- If laws dictate entry, is BTC really unstoppable?
💡 Bitcoin is decentralized, however exterior forces (exchanges, devs, regulators) restrict its potential.
✅ BTC remains to be the most safe and battle-tested cryptocurrency.
✅ BTC’s mounted provide and decentralization make it distinctive.
✅ BTC is not the issue; centralized management round it’s.
BUT…
❌ BTC’s growth is managed by just a few influential gamers.
❌ Scaling options are being artificially restricted.
❌ Artificial BTC provide by way of exchanges will increase the danger of crashes.
💭 What’s the Future?
- BTC will doubtless survive, however with robust exterior influences.
- Different chains (BCH, Monero, and so on.) are exploring completely different approaches.
- If BTC is really decentralized, it should enable open discussions on scaling and enhancements.
Bitcoin was created to battle towards the issues of conventional finance. However human greed has discovered methods to recreate those self same flaws inside the crypto ecosystem.
- BTC’s code stays pure, however the system round it’s flawed.
- Exchanges & custodians create an artificial BTC provide.
- Political influences restrict BTC’s potential.
- Decentralization is being examined by large gamers.
👉 Will BTC stay really free? Or will centralized forces form its future? 🔥
Let me know your ideas within the feedback under! 🚀