blockchainyogi on Nostr: Is Bitcoin becoming more centralized? 🔸 Mining Power – A few large mining pools ...
Is Bitcoin becoming more centralized?
🔸 Mining Power – A few large mining pools control most of the hash rate, increasing the risk of collusion and making the network more dependent on a small number of players.
🔸 Node Infrastructure – While running a node is permissionless, many rely on cloud providers like AWS, introducing a point of failure if governments or corporations decide to intervene.
🔸 Custodial Holdings – More Bitcoin is being stored on exchanges and custodial wallets, shifting power to centralized entities that can freeze or censor funds.
🔸 Development Influence – Bitcoin’s open-source development is led by a relatively small group. While anyone can contribute, major decisions are often shaped by those with technical expertise and financial backing.
🔸 Scaling Solutions – Layer 2 solutions like the Lightning Network improve efficiency but often depend on large hubs, creating new centralization risks.
Decentralization isn’t automatic—it requires ongoing effort. Are these trends reversible, or is Bitcoin’s future destined to be more centralized?
#bitcoin #nostr #thoughts
🔸 Mining Power – A few large mining pools control most of the hash rate, increasing the risk of collusion and making the network more dependent on a small number of players.
🔸 Node Infrastructure – While running a node is permissionless, many rely on cloud providers like AWS, introducing a point of failure if governments or corporations decide to intervene.
🔸 Custodial Holdings – More Bitcoin is being stored on exchanges and custodial wallets, shifting power to centralized entities that can freeze or censor funds.
🔸 Development Influence – Bitcoin’s open-source development is led by a relatively small group. While anyone can contribute, major decisions are often shaped by those with technical expertise and financial backing.
🔸 Scaling Solutions – Layer 2 solutions like the Lightning Network improve efficiency but often depend on large hubs, creating new centralization risks.
Decentralization isn’t automatic—it requires ongoing effort. Are these trends reversible, or is Bitcoin’s future destined to be more centralized?
#bitcoin #nostr #thoughts