A recent viral post by Anita Posch warned about the risks of governments and institutions buying large amounts of Bitcoin. The main concern is that these big holders could influence the Bitcoin consensus rules to impose censorship. While mining centralization is a more direct threat to censorship, if economic nodes enforce censorship as new protocol rules, it can be considered a soft fork.
In this scenario, miners can’t revert from the censorship without splitting the blockchain, which would constitute a hard fork. This has led to concerns about governments and large institutions accumulating a significant share of the Bitcoin supply. However, it’s not clear if these entities would be willing to risk it all by betting on a censorship fork of Bitcoin.
The best countermeasure is to not sell Bitcoin to these institutions.
Source
<p>The post Censorship Concerns: Will Institutional Bitcoin Holdings Pave the Way for a Forked Future? first appeared on CoinBuzzFeed.</p>
