Consolidation sounds like centralization to me

[Itty Bitty]

Is bitcoin better off with 1000 people holding 1 bitcoin each, or "consolidating" to 10 people holding 100 bitcoin each?

The first case (1000 bitcoin holders) has 500,500 different combinations of people who can send bitcoin to each other.

The second case has 55 combinations.

Am I misunderstanding the word consolidation?

If I find out someone is involved in consolidation, should i jeer them, laud them, or just shrug my shoulders (as in, whatever, dude)?

Seems like consolidation might be good for bitcoin as digital gold (desire greater to hoard 100 units of something than 1 unit?), not so good as peer to peer cash transfer network.

[NeuroticFish]

The problems on the market are not created by the ones with 1000 BTC, it's made by the ones having 1000s ...

And about encouraging... imho the best is always somewhere in the middle: hold some (hopefully it'll help the price grow), spend some (to ensure liquidity).


Now for OP: I don't know the context where you've heard about consolidation, but one context is to consolidate the inputs. This means to send the Bitcoins to yourself if they were achieved from many transactions. The result would be all your coins are from one transaction, ensuring the future spending at lower cost. This was very popular when the transactions costs dropped back to normal after being extremely high in December (possibly caused by spam attack) and people were expecting the high fees (and the spam attack) would return, so consolidating the input could save big bucks.

[BrewMaster]

this is the first time i hear someone use the word "consolidation" in this context! it is either what NeuroticFish said above about inputs or in economical context it means this: https://www.investopedia.com/terms/c/consolidation.asp

it has nothing to do with distribution of bitcoin and there is nothing wrong with the way bitcoin is distributed because it was always fair and transparent. you can not blame someone who has taken a huge risk and invested his time and money in bitcoin so that he can own a bigger amount like 1000. you should blame yourself for hearing about bitcoin years ago and not doing the same.

for example in first days 1000BTC meant you should have ran your computer for 3 hour and 20 minutes at least to find blocks for something that didn't even have real value in the real world and was literary "virtual" money.
the way i see your argument is asking why someone like Hal Finney for example put his time and effort on something that now has a lot of value. and you imply that to be unfair.

[harrybell]

I didn’t get how consolidation define the centralization/decentralization. Hope it will be not make BTC as centralized curreny.

[vy99]

But i'd encourage Bitcoiner to spend their coins, even only for small goods.

Yup, hoarding all your Bitcoin isn't going to help the overall market. We need people to spend their coins so Bitcoin achieves it's true and original purpose...as a currency.

[Labyrinth Wraiths]

Bitcoin operates in a decentralized system and the users have full control over their money and transactions. It has always been fair and transparent to its users. So what others are doing and facing is nothing to bother about. In this situation, you can hold some and spend some. You will get your feedback soon!

[Mulbuggie]

Bitcoin is always transparent. It is also fair to its users. People using bitcoin has full control over it and thus they have nothing to do with what others are doing! In this situation, you can make a balance in your transaction. Hope that, you will get the best result.

[Jonsnowstark]

I dont get it why consolidation would be differentiated according to number of people holding bitcoin. Consolidation, in my own understanding, is merely, putting together ones assets or in crypto, putting all your altcoins into one coin like bitcoin for example.

[GhostAltCoin]

"There is no way that the price gets manipulated by the investors. The only factors that affects it, is the demand.
"

[Gravityle]

"There is no way that the price gets manipulated by the investors. The only factors that affects it, is the demand.
"

It can be manipulated by creating false informations. There are big players who can sell big amounts to scare the overall market and make people sell their coins as well.

[Wandly]

Well, bitcoin has always been transparent to its users. People are now independent in the BTC transactions. So it has basically nothing to do with what other people are doing. In this situation what can be done is to hold some and spend some. Make a balance and you will get the best result hopefully.

[pooya87]

"There is no way that the price gets manipulated by the investors. The only factors that affects it, is the demand.
"

It can be manipulated by creating false informations. There are big players who can sell big amounts to scare the overall market and make people sell their coins as well.

market manipulation is not as easy as you think. it is not about having a lot of funds, it is about knowing how to do it and knowing the trend of the overall market so that you don't go against it. for instance right now if a manipulator tries to push the price upwards he will be crushed but he has a better chance of pushing it down.

for instance last year during the $2000 breakout a couple of bearwhales on bitstamp tried to push the price down. there was a lot of FUD about how Bitfinex is going to be closed down and go away and price fall down while these whales kept on dumping on bitstamp. long story short they lost a lot of money because the market trend was a rising trend and they got crushed.

[Hozaim]

You got the concept of consolidation wrong here. The only force that can affect the price of BTC is demand. If demand falls, so will their price and vice versa.

[Alighway]

Consolidation is the idea of making something more solid or stronger through a correction. So, current Bitcoin consolidation refers to the correction of price which we are experiencing right now. Once the consolidation is done, the market will start functioning in it's normal way which was the case before the consolidation.

[Walter edmond]

Consolidation is usually referred to as an indecisive period when the price moves above or below the prices in the trading pattern. Bitcoin is a cryptocurrency which runs on decentralized system and builds peer to peer connection. If it remains consolidated have a definite group ofit will never get mass adopted, as it is not good for its overall development.

[herodrx]

I am not clear about you consolidation scenario. Wish you will help me any resource from where I can get a proper knowledge about it.

[johnethearn]

Why we talking about consensus or consolidation as we know BTC is based on the decentralization theory. But it is right, in future we will see the merge in banks with blockchain and decentralized system. But it will be the start point of BTC revolution which will make every money system under decentralized theory and BTC will be prime of all.

[Cobbabowga]

I believe you have got the wrong idea about the word 'consolidation' because in economic terms it stands for correction of the market which means whenever the price of a product increases for synthetic (false) reasons then the consolidation happens once the customers and investors get aware of the situation which was created by manipulation.

[hatshepsut93]

Bitcoin's protocol doesn't really care how many coins certain individuals have, it has no effect on other's ability to execute transactions and it doesn't play much role in consensus. We are not some PoS coin where distribution matters.

Huge concentration of coins can be used to affect the price, and the price plays a role in Bitcoin's protocol because it determines the total PoW, I think it's not realistic to expect that some huge percentage of coins will end up consolidated and then used to attack Bitcoin, it would be too hard and too risky to execute such attack, and in the end Bitcoin will recover.

[isllander]

For me, consolidation is a massive involvement. When on the development stage, the interests of 100 people weigh more than one. The bitcoin will work.