Bitcoin's block size limit is a major bottleneck for scaling its transaction capabilities.
MicroStrategy holds approximately 423,000 BTC, raising concerns about Bitcoin's decentralization.
Critics argue Bitcoin's reliance on second-layer solutions deviates from its original peer-to-peer vision.
The changes in Bitcoin have caused concern among fans and critics of the digital currency. The decentralized virtual currency that was created as electronic money is now considered by many to be a digital asset. This has raised the question of whether or not Bitcoin has departed from the vision encompassed in Satoshi Nakamoto’s white paper.
Critics have claimed that Bitcoin's shift from a digital currency that can be used for barter to an asset more commonly owned by institutions has effectively made it incapable of revolutionary change to the current global banking or monetary policy. Critics have pointed out that doubts about the scalability of the second-layer solutions is a technical question and philosophical one.
Scalability and Decentralization Concerns
Among the persistent complaints about the coin is its scalability. This has remained a significant problem that looks set to undermine its capacity to process transactions as more blocks are added efficiently. Several consumers are convinced that including second-level solutions like the Lightning Network detracts from Bitcoin's essence, P2P transactions.
Another issue is the concentration of Bitcoin ownership. However, some people are concerned that most of the coins are concentrated by several massive investors such as MicroStrategy and high network centrality. The largest holder of BTC is MicroStrategy, headed by Michael Saylor, who has purchased about 423,000 BTC. This raises awareness of the impact of depending on a single company on Bitcoin’s sustainability.
Supporters Defend Bitcoin’s Evolution
Not all view these alterations as unfavourable. People like Mike Novogratz also claim that Bitcoin has followed the patterns that resulted from the market and coupled with the will of the majority of the community. According to Novogratz, Bitcoin's becoming a value storage instrument is a reaction to the economic environment rather than a deviation from its original purpose.
https://twitter.com/novogratz/status/1866490859036053770
Some also avoid criticism, while others emphasize the currency's adaptability to user preferences. They refer to Bitcoin's use around the globe as evidence that it still offers a high level of utility. Advocates argue that its value proposition is versatility because it is both a store of value and a payment system.
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