A path towards crypto’s inevitable centralization. – Hacker Noon

First talking about power, Binance for example, same as many other exchanges who got fat during the last bull(we fed them). Their VC leg is becoming one of the most influential players and the most powerful one, whoever got into their launchpad program is directly exposed 10 million users on their platform, that could be half of all population active in the crypto sphere. A spot every team is dying for, yet the power of deciding who got launched relies on a single few handful of people. And they have all the power to pick whichever project that fits their vision and have such tremendous influence on what the future landscape will be.

This put us again in the hands of tyrants, benevolent or not. Whatever their true vision is, how excellent or benevolent they have been doing is irrelevant. The relevant effects, however, is that they are becoming The single point of failure. As counter-intuitive it can get, the better job they do, the more centralized crypto ecology will become, Money begets money.

Secondly talking about dangers of centralization of money, take bitcoin for example, the price discovery is driven by supply and demand (or the wrestling between the “consensus” of how much it worth). Exchange can not set how much it worth directly, but they can manipulate the price by adjusting the total supply of it. All crypto flows to them anyway. This is even worse than banks, You give them your money, they pick where to invest it. your money in the bank is legally still yours, but the fees you paid to exchanges are not yours anymore.

Whether they try to manipulate the price or not is again, not a relevant subject of discussion, however, such centralization of wealth is a direct contradiction to the entire idealism of decentralization. But they can use this wealth for good right? Absolutely! Please see point Nr 1 for a how-to-for-dummies guide about exchanging centralized wealth for power.

Regardless where this ends up, I still believe bitcoin and crypto can be a very meaningful endeavor within our lifetime towards more freedom.

But not through forceful expansionism.

Live, and let live.

Always remember that power corrupts, Absolute power corrupts absolutely.

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