Oddbean

A new (to me) concern is that institutional/state control of a large percentage of utxo’s provides them an opportunity to use a subset of miners and effectively isolate those coins to their approved and kyc’d network. They just don’t broadcast txns outside their domain. A network fork I guess.

Andreas was talking about this sort of thing years ago it seems unlikely to be valuable to create a walled garden within the network but regulatory capture is a real thing https://www.youtube.com/watch?v=KSv0J4bfBCc

Interesting, I’ll watch this tonight. But right now, I think it’s uncomfortably likely. They don’t need to overpower the existing network. Once they have say 10 million to 14 million btc under control, they just start using a subset of nodes running their own validation filters. And only sending txns within their network. If they never spend to an unauthorized address then those coins are effectively lost to the existing/organic network. They use their own chain fork going forward. I guess the original network could keep going, but it would be stunted.

@Kanzan bullseye. Yeah, that’s what I’m concerned about. I was also against etf’s for some of these reasons plus some or all of them are going to try the paper bitcoin game. Didn’t realize he was saying this 6 years ago though.