Blockchain technology has been heralded as one of the most significant technological advances of our time and forms the cornerstone of Bitcoin. However, the main question began to emerge: Has Bitcoin, the first and most famous descendant of this revolutionary technology, turned into the biggest casino in history? Bitcoin was originally introduced as a fully decentralized currency – a monetary system designed for the people that cannot be manipulated by any central authority.
This decentralization is Bitcoin's greatest appeal, and it creates the image of a fair financial sphere where power is evenly distributed. However, the current situation seems to be deviating from these ambitious goals. Bitcoin has increasingly been compared to a high-stakes gambling platform controlled by a small group of powerful entities known as "whales". These entities are said to own up to 99% of all bitcoins and can therefore skew the cryptocurrency market to their liking, just as casinos adjust the odds.
This effect is not limited to Bitcoin accumulation. These so-called whales also control most bitcoin exchanges, allowing them to manipulate future transactions and thus the direction of bitcoin's value. They make big profits every day, as if they are not only the biggest bets on the casino table, but also control the casino odds.
In addition, there are growing concerns about potentially illegal activities that some of these powerful entities may be involved in. Unfortunately, Bitcoin's anonymity makes it an attractive tool for financial crimes, obscuring the true spirit of blockchain technology. So how does this affect the average investor or someone new to crypto?
First, it's important to recognize the dichotomy between the advanced technologies that underpin cryptocurrencies and the contrasting realities of Bitcoin's current landscape. Therefore, it is important to exercise caution and be aware of the risk. Second, don't put all your capital in one place. Even in the volatile world of cryptocurrencies, the age-old advice of diversification still applies.
Finally, stay up-to-date and keep up with the rapid changes in the cryptocurrency space. Understanding the latest trends, market dynamics and cryptocurrency technologies will help you make informed decisions.
Overall, while Bitcoin marks a major development in financial technology, it's important to see it for what it is now, a high-stakes game where the odds seem to favor the house. As we enter this ever-changing field, let's remain optimistic about the potential of blockchain technology and consider the realities of the marketplace.
For a more detailed discussion on this topic, see this insightful article: How Centralized Is Bitcoin?
Author: Pooyan Ghamari, Swiss Economist & Visionary