Bitcoin Forum

I know that decentralized currency means that no central bank can control the money supply.

But what if 2-3 major players own 40-50% of all the bitcoins.

Do you still think that the currrency is "decentralized" if 2 or 5 or even 10 big players can control the btc price

just by selling and buying large amounts of bitcoins.

What do you think about that?

In case they are also miners this is very bad. If they just own 40 - 50% of bitcoins, I do not think that they will be interesting in degradation of this technology or lower down the price. If price will be higher we all will be in good profit.  ;D

Yes, it's decentralized. The system is. It doesn't matter about how much you own, what could make the system centralised iis if one miner has control of 51% or more of the mining Power, or if a group/entity had this power.

It is decentralized in a sense that noone can increase or decrease the total supply or creation of coins.
Price may be manipulated by big players who have large holdings but that is another thing and it doesn't makes bitcoin less decentralized

As far as i know the biggest play has about 5% so this is not worrisome and i am sure we will be fine in the future.
More concerning would be a miner with 51% mining power, which already happened before with mining pools if i remember correctly.
But the community corrects this situations usually very quickly, since it is not good for anybody. Not even for the 51% miner since he is at risk loosing all because of bitcoin using its value.
 

Bitcoin is decentralized , not sure miner always hold more 51 percent , it is always buy and sell method , and people whoever using bitcoin they want this technology to be retained in future also . it looks there is no issue with bitcoin and not to worry  :).

That's right the decentralized is just having a relationship with the system of bitcoin and not having relationship with how many you are having the volume of bitcoin but maybe having a lot the volume of bitcoin is make possible for your to giving a big impact for bitcoin especially for their price.

Understanding
Bitcoin
Cryptography, engineering, and economics
PEDRO FRANCO


My comment: yes, whatever you will think of Bitcoin is decentralized. Go back to your fiat money if you don't like it.

Yes right i does not depending on any government or authority and as you are talking if some one hold about 30-40% bitcoins it still wont matter and this only cannot make it centralised.Bitcoin is decentralised and never will be in control of one person or a group of people.

Bitcoin/blockchain is decentralized system and there are many nodes opertor worldwide which is supporting bitcoin network that means bitcoin ledger information is actually stored in many location in world making bitcoin completely decentralized. Price can get manipulated but network can't be manipulated or centralized.

Yes bitcoin is decentralize there are many site bitcoin came from and the government can not control the bitcoin movement that is why the price of bitcoin is not stable and also not all country are using bitcoin.

price can be manipulated, but network cant be manipulated, but stable and centralized!!!

Bitcoin is the first decentralised currency. It doesn't really matter as to how much BTC you own. Even if you own 90% of Bitcoin, it isn't going to make the cryptocurrency any more centralised.

However, a problem could arise if only one party controlled 51% or more of mining power. This could harm the current decentralised system.

 :)

I am still not convinced that the current bitcoin could be centralized. bitcoin system is anonymouse, and bitcoin is controlled by all stakeholders.

The concept of a decentralized currency has nothing to do with ownership distribution. That's typical socialist mind confusion. The fluctuations in (fiat) price are totally irrelevant to determine if a currency is decentralized or not.

The essential aspect of Bitcoin is that the verification of ownership is handled in a decentralized way. It also means that no single entity can manipulate transaction flow or monetary supply. Every owner of Bitcoin can only exert control over his/her own Bitcoin - owning a large amount grants no special rights.

In contrast to fiat money there is no central bank that controls money creation (and thereby inflation). Bitcoin is not dependent on government's monetary policy, because it's parameters are handled by an algorithm that the whole network mutually agrees on. Therefore it is decentralized.

ya.ya.yo! 

Yes.


I think:

• You don't understand what the intended meaning is when bitcoin is described as decentralized
• Those attempting to control the price will eventually run out of bitcoins

doesnt matter how much big players, they will eventually run out of bitcoins. it's like what we are seeing in ETH vs ETC, the ETC holders are trying to destabilize the price, but, even if they crash to 1 satoshi, if the market is strong enough they will absorb all and the price will come back.

i secondly that this!!!

owning that much bitcoin doesn't mean you could control bitcoin,everyday a new bitcoin was mined and generated so the total of bitcoin always increasing day by day,if you own about 50% of bitcoin today,maybe next year you'll holding 40% of bitcoin and it'll keep up until the bitcoin reward which those miners get from mining is none
although the key that makes bitcoin decentralized is the miners not depending on how much you're currently holding now,and it's how blockchain system work in my opinion

i guess when a government can't control bitcoin,it have nothing to do with the unstability of the price,unless they creating some new regulations,it'll giving an affect if it's quite big news whether it's bad or good

well if governments dont control it then people control it and make the price not stable, bitcoin is really decentralized and i think that it is going to be like that

A few people or groups could control Bitcoin. If that happens, it could be the end of Bitcoin. It's in everyone's best interest for that to not happen.

This is actually the hole about decentralization.
If a person/group with enough power/money actually goes and tries to hoard in 51% of supply and mining power, then it would be centralized to them as they would have the most influence to move the value either up or down.

when you get to the root of it, its all about who can "hack" / access / move funds of private keys.
as long as there is no encryption exploit funds are safe( by this i mean about you holding ur own privkeys)

as for businesses that run on the outside edges of the bitcoin ecosystem. well thats not bitcoin but just currency businesses

i personally dont care about daily fluctuations of prices.. i see the bigger more longer term picture. but if you only care about how much fiat you can get for bitcoin then thats your flaw.. but lets deal with that..

in 2009-2011 there was only 1 exchange. so for the "price control" concern, the bitcoin price has become more distributed with over a dozen well know exchanges recently. and more coming each year.

soon people will be less reliant on these exchanges and people will be able to barter better and more adhok. ofcourse the ability to compare prices between different layers, services, gateways is just another situation that is not really about bitcoin but about currency businesses.

the real question is..
if you want bitcoin to be sooo different then fiat. why do you care about a fiat valuation rather than bitcoins abilities that dont need to convert/touch or care about fiat

Bro Even World economy have the same hole to control the over all business sectors and world. Bitcoin is also having the same defect like that. all the pump and dump of the bitcoin price is according to that only.

OK, so now you own 40% to 50% of all Bitcoins and then the miners just start mining more every 10 minutes. If you hoard all those Bitcoins, the price will just go higher and you will not be able to buy

any more... So your 40% to 50% will just decline, until you own only 10% to $20... What did you achieve? Nothing. You just increased the price for a short period, and other people profited, while you

were sitting on the Golden Egg.  ;D ;D ;D