Chair of SEC Claims Bitcoin Is Not as Decentralized as Believed
The Chair of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has stated that Bitcoin (BTC) is not as decentralized as the public perceives it to be. In an interview with CNBC, Gensler emphasized that Bitcoin is “not that decentralized,” attributing this partly to the dominance of centralized crypto exchanges.
Centralization Concerns
Gensler argues that the concentration of power in a few major crypto exchanges contradicts the idea of decentralization. However, it is unclear how this relates to Bitcoin’s actual decentralization, which is rooted in its blockchain technology. The network’s decentralization is achieved through a distributed ledger managed by a global network of computers, with no single controlling entity.
Associating Bitcoin with Ransomware
Gensler echoes JPMorgan CEO Jamie Dimon’s previous assertion that Bitcoin is primarily used for criminal activities such as ransomware attacks. He states that BTC is the “leading market share in ransomware,” which is widely known. However, he fails to acknowledge that fiat currencies like the US dollar and euro are also used for illicit activities.
Bitcoin’s Transparent Ledger
Gensler suggests that Bitcoin’s transparent ledger may create an illusion of greater decentralization than it actually possesses. He dismisses it as merely an accounting ledger and advises against using it as a reason to invest in BTC.
Bitcoin’s Current Price
At the time of writing, Bitcoin is trading at $51,699, representing a 6.5% increase in the past 24 hours.
Featured Image: Shutterstock/arleksey/Sol Invictus
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