What if One Group of People (Central Banks?) Buy All Bitcoin then Create Derivatives to Control All Transactions and All Money?
If one group controls all Bitcoin and creates derivatives to control all transactions and money, it would not only be unethical but also dangerous for a decentralized and transparent financial system.Â
Bitcoin’s main advantage is that it is decentralized, meaning that no single entity has control over it, and transactions are transparent and irreversible. If one group were to monopolize Bitcoin and its derivatives, they would essentially have complete control over the financial system, allowing for fraudulent activities to occur with no accountability. They would have total control.
Additionally, it could lead to a collapse in the value of Bitcoin, as its decentralized nature relies on a diverse network of users to maintain its value. If one group were to control all the Bitcoin, other users may move away from the currency or create a new one, leading to a loss in value for those who hold Bitcoin in the first place.
In summary, monopolizing Bitcoin and its derivatives will not only be unethical but also detrimental to the value and stability of the currency.
How Could This Happen?
- Over time, all consumers embrace Bitcoin.
- They continue to buy products and services from major retailers/providers like Amazon, Walmart etc. (Using Bitcoin).
- The Bitcoin flows up to financial institutions.
- The financial institutions eventually hold most/all Bitcoin then create a derivative product backed by Bitcoin.
- This new derivative product is used to pay salaries to workers, etc.
- Bitcoin is no longer used for trade.
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Is this a realistic scenario?Â
Could this happen?
If a situation like this did happen, would it be good, or bad?Â
Thinking of the future, and the future of freedom, what other scenarios could be possible?
