Concerns As China And The US Continue To Stack Up On BTC: What Does This Mean For Decentralization?
Latest News News

Concerns As China And The US Continue To Stack Up On Bitcoin (BTC): What Does This Mean For Decentralization?

  • The US government leads the race, holding over 200k Bitcoin (BTC) while China comes  as a close second, with more than 190k BTC.
  • Despite rumors that the DOJ might be gearing up to sell, the crypto community is concerned about decentralization.

The promise of freedom from centralized entities like governments(China and the US), banks, and other financial institutions fuels the entire cryptocurrency world. 

Bitcoin’s technology is undoubtedly sophisticated enough to take care of itself; however, the government’s increased stimulus plans have continued to raise issues. 

In general, bitcoin maxis and the cryptocurrency community are increasingly becoming concerned about the continued uptake of Bitcoin by larger economies like China and the US. 

Through the DOJ, the US government currently holds more than 200k Bitcoin, making it the leading country in BTC holdings despite needing clear backing for the course. 

Unlike the US, the Chinese government has repeatedly shown clear intent to own BTC. The Chinese government is the only country rivaling the US in the number of BTC holdings. 

See Also: Monochrome Applies for Australia’s First Spot Bitcoin ETF Via Cboe Listing

With approximately 190k Bitcoins, the two countries are positioning themselves as custodians of Bitcoin, raising questions about true decentralization. 

Potential Threats China and the US pose to Decentralization.

Bitcoin thrives on decentralization and freedom for its users. When large economies like the US and China continue to amass Bitcoin, there is a potential threat to centralize holdings, undermining the decentralized nature of cryptocurrencies in general. 

Additionally, the mass adoption of Bitcoin by authorities like China and the US can significantly impact regulation. 

The regulatory influence of these governments can hinder the natural growth of these cryptocurrencies. 

Continued adoption of Bitcoin by China and the US can create stricter regulations that can easily affect its use and distribution. 

Additionally, government involvement can easily shape mass opinion and alter market dynamics that are seemingly happening organically at the moment. 

Governance concerns can also become significant when different independent countries challenge the primary principles of decentralization. 

According to an X post by Blockworks, the DOJ has a lot of Bitcoin and might be planning to sell a large chunk of it. 

The tweet sparked a debate on Twitter, with many Americans expressing their discontent. 

Some crypto enthusiasts mentioned that the DOJ did not receive the enormous Bitcoin holdings legally, while others noted that Americans should at least get a share of what the government currently holds in BTC. 

Despite these sentiments, it is clear that Bitcoin still remains the pillar of cryptocurrencies and demonstrates the potential to revolutionize the financial scene. 

See Also: Solana Network Faces High Failure Rate in Transactions Amid Memecoin Mania

Looking at the maximum supply of Bitcoin (21 million), the current holdings by governments are negligible. 

The Top ten countries holding Bitcoin are the USA, China, the UK, Germany, Ukraine, El Salvador, Finland and Georgia. 

These countries hold  566,277 Bitcoin, with a current market value of $38,755,796,139. 

Out of the 21 million Bitcoins, these ten countries hold 2.697% of the total supply as of March 2024. 

These figures, however not threatening, should shed insight into the possible increase in BTC uptake by governments like China and the US, threatening decentralization.

Disclaimer: The information provided is not trading advice. holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.


#Binance #WRITE2EARN

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.