When 50-75 people control 90% of Bitcoin supply, has it ever been decentralized

[solid12345]

This is the elephant in the room no one likes to discuss, alot is made about ghash gaining control of 51% of the hash rate, but what about the elite few who actually own all the Bitcoins? Are we not equally at their mercy as the big mining pools?

[ljudotina]

This is the elephant in the room no one likes to discuss, alot is made about ghash gaining control of 51% of the hash rate, but what about the elite few who actually own all the Bitcoins? Are we not equally at their mercy as the big mining pools?

We are.
They can, if they choose, drop down price to whatever level they want (by selling huge quantities of BTC on open market).
But, doing so would damage "them" more than it would damage "us", so it's kinda self healing / reapiring system. Not many are willing to commit economic suicide "just for funs".

[Beliathon]

This is the elephant in the room no one likes to discuss, alot is made about ghash gaining control of 51% of the hash rate, but what about the elite few who actually own all the Bitcoins? Are we not equally at their mercy as the big mining pools?

We are.
They can, if they choose, drop down price to whatever level they want (by selling huge quantities of BTC on open market).
But, doing so would damage "them" more than it would damage "us", so it's kinda self healing / reapiring system.

Correct, the Bitcoin network is an organic system that, like your body, is always seeking homeostasis. If you think you can hurt it, you are mistaken. You can delay it's development, mostly at your own expense, to the benefit of no one.

[Cicero2.0]

I seriously doubt that large holders would be irrational enough to hurt themselves financially. What would they gain from it? It is their interest that bitcoin does well.

I am sure there are some that would try to manipulate the market by dumping so they can buy at a lower price but that happens in all markets.

[Melbustus]

Umm... Where did you get those numbers? (Current thread title is: "When 50-75 people control 90% of Bitcoin supply, has it ever been decentralized".)

Are you just fudding, or are you quoting (or misquoting) some number you heard somewhere?


The thread with the most research on this topic is here:
https://bitcointalk.org/index.php?topic=316297.0

From that thread:
"100,000 owners with BTC10-BTC2,000 ($5,000-$1,000,000) hold 50% of the bitcoins."

[S4VV4S]

Umm... Where did you get those numbers? (Current thread title is: "When 50-75 people control 90% of Bitcoin supply, has it ever been decentralized".)

Are you just fudding, or are you quoting (or misquoting) some number you heard somewhere?


The thread with the most research on this topic is here:
https://bitcointalk.org/index.php?topic=316297.0

From that thread:
"100,000 owners with BTC10-BTC2,000 ($5,000-$1,000,000) hold 50% of the bitcoins."

You are forgetting that Satoshi alone holds around 1.5m BTC.
Where does he fit in?

[Willisius]

Not technically, but in an economical sense, we are "at the mercy," so to speak, of anyone who holds so much. The good news - for holders - is that people are very greedy, so they probably act (with no regulation) in whatever manner they can to drive the value of their investment up. The bad news - for Bitcoin itself - is that its "true" value as a store of wealth is concealed by this behavior.

[beetcoin]

Not technically, but in an economical sense, we are "at the mercy," so to speak, of anyone who holds so much. The good news - for holders - is that people are very greedy, so they probably act (with no regulation) in whatever manner they can to drive the value of their investment up. The bad news - for Bitcoin itself - is that its "true" value as a store of wealth is concealed by this behavior.

it's not just driving the price up. you can make money by speculating and driving it down, then buy them up and push them back to their original value.

[SomethingElse]

That is why I like NEM

[FlowerMatt]

If all the structure is made on a good basis it can be decentralized even with their 'contol'