Bitcoin is a cultural movement. Bitcoin is for people. In the case of Bitcoin, it’s a matter of principle.
…or at least this is the proposal, the CoinShares Chief Strategy Officer, Meltem Demirors, in a recent Twitter Thread has raised. In it, she poses the question: “How can we allow a greater involvement of(Bitcoin) by a third party, instances, without losing the message”?
Contents
Not your Keys, not your Bitcoins
Demirors points to the dichotomy between the Ideals of the Bitcoin Community and the reality of the industry. As a Community, we place great value on qualities such as choice and access, security and privacy. In reality, however, the largest part of the value created in the crypto-industry of intermediaries and third instances.
1/ in the crypto community, we love to talk about things like
choice and access
– self-sovereignty
– privacy and consent
– removing rent-seeking
but when we take a hard look at what we’ve built… the majority of value in our industry is being captured by intermediaries pic.twitter.com/PHmRn0hm9I
— Meltem Demirors (@Melt_Dem) 27. September 2019
Ultimately, the Power remains with those who control the Coins. If you consider the entire previously mined Bitcoin, it can be estimated are 17 percent in safekeeping by a third party. This is a conservative estimate, but even this percentage is quite high.
Third instances centralize the risk
Demirors declares that it centralizes the risk, if a small number of companies holding values of a large number of assets. In Altfinanzierungen this is dangerous, but not fatal. Bank bailouts and the fact that the US government has created as a response to the financial crisis in 2008, the category of sifis. In the case of Bitcoin however, this is both dangerous and potentially fatal, argues Demirors.
As Binance’s Hot Wallet with 0.03 percent of BTC in circulation in may was hacked, it was discussed a Rollback, but rather quickly rejected. But what is the Position if a third instance, a 5 percent (or even more) keeps all the Bitcoins will be hacked?
According to the Ethereum DAO-Hack 97 per cent of the ETH-holder for the Rollback voted against the minority, who believed that this violates the immutability of the block Chain. This is still BTC? Demirors is not so sure. This brings us back to our original statement.
Bitcoin is a cultural movement. Bitcoin is for people. In the case of Bitcoin, it’s a matter of principle.
Text evidence: bitcoinis, emilio janus