A few hours ago, it emerged that Binance was delisting Bitcoin SV (BSV). This was followed by dump not just for SV but for the entire market as well. In the crypto community, reactions are mixed on this one. Holders of Bitcoin SV are not happy because their crypto is dumping, and is likely to keep dumping. That’s because, speculation is rife that other exchanges could move to delist it too. On the other end of the spectrum, there are those that are happy that Craig Wright is getting punished by the market.
Craig is not the most loved person in crypto for his claims that he is Satoshi Nakamoto. Many, including Cz_Binance, have claimed that he is a fraud. The fact that he has never moved a single bitcoin (BTC) from the original satoshis wallet has always added to the sentiment that he could be a fraud for claiming to be Satoshi Nakamoto. However, in spite of all these different perspectives on Bitcoin SV and Craig Wright, one thing stands out, power in crypto is too concentrated, and it could be destructive to this young market.
To understand this concentration of power, one needs to go no further than the current market situation. The market has dumped because one person has decided that a major Bitcoin fork isn’t worth of listing on his exchange. In a truly decentralized market, this shouldn’t be the case. The decision of a single individual or entity shouldn’t be in a position to wipe billions off the market. It goes to show that in crypto, power is much more concentrated than an average listed company. Another example of power concertation in crypto was during the hash war between Bitcoin cash ABC and Bitcoin SV. At that time, Craig Wright threatened to dump Bitcoin and push it to $1000 and billions were wiped off the market.
That’s a dangerous situation where very few individuals can influence the overall trajectory of the entire market. In a truly decentralized market, the impact shouldn’t be noticeable. In fact, it shouldn’t even cause a bump in the market. The problem with such heavy concertation of power is that it may scare off institutional money from the market. It’s hard for institutional money that operates under strict regulatory environments to enter a market where billions can be wiped off, simply on the basis of the emotions and egos of a few powerful market players.
But all hope is not lost. Decentralized exchanges are on the rise, and more investors are getting to learn of their advantages over centralized exchanges. As more transactions pass through them, power, especially exchange power will be neutralized. On top of that, now that coins like Bitcoin SV seem to on their way out, the power of individuals like Craig Wright will decline too. Ultimately the market will find a new equilibrium in a manner that conforms to the whole ideals of decentralization. The future remains bright for the crypto market, in spite of the many bumps along the way.