Main to remember
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Bitcoin’s standard author Saifdean Ammous says that even if an entity had a huge amount of bitcoin, that would not harm the protocol
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Ammous reiterated large companies like Blackrock and Strategy do not have the bitcoin that they hold because it belongs to investors
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Ammous said that if these companies had abused their position, people would probably draw their money and invest elsewhere.
Michael Saylor’s strategy has hypothetically broke almost 48% of the total Bitcoin offer would present no risk for the Bitcoin protocol or its price, explains the author of Bitcoin Standard Saifdean Ammous.
“If Michael Saylor ends up with 10 million bitcoin, what will he do?
AMMOUS rejects Bitcoin holes of risks
“In the end, I don’t see how it would threaten the protocol in the serious sense,” said Ammous.
Ammous said that if Saylor had managed to accumulate 10 million Bitcoin (BTC), it would be unlikely to “wake up one day and say and say the difficult fork so that we can do 5 million additional bitcoins so that I can have 15”. He reiterated that this would decrease the value of its 10 million existing bitcoin.
Several players in the cryptography market have previously raised concerns about Bitcoin whales and when their assets could cause risks such as market manipulation, centralization or liquidity problems.
At the time of publication, Saylor’s strategy contains 538,200 Bitcoin, worth around 50.18 billion dollars, according to Saylor Tracker. Meanwhile, the BlackRock Ishares Spot Bitcoin ETF has net assets worth $ 54.48 billion, which is equivalent to around 585,000 Bitcoin, according to BlackRock data.
Collectively, the two companies hold approximately 5.3% of the total Bitcoin supply. However, Ammous said it was not a source of concern.
“It is not like Michael Saylor or Larry Fink has all these bitcoins. They have shareholders who have all these bitcoins, or FNB holders who have these bitcoins.”
“Insofar as Blackrock and the strategy hold them, they hold them because they do their fiduciary part of tasks towards their shareholders and the holders of FNB in a satisfactory manner,” added Ammous.
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Ammous explained that if BlackRock or the strategy was starting to manage their assets in a harmful manner for shareholders or FNB holders, or begins to abuse their position, it is at this point that investors would sell and seek other ways to expose themselves to Bitcoin.
On April 24, Cointtelegraph reported that Twenty One Capital, a new Bitcoin cash company, led by the founder of Strike, Jack Mallers with the support of Tether, SoftBank and Cantor Fitzgerald, seeks to supplant the strategy to become the “upper vehicle for investors in search of an exposure to the Bitcoin effective by capital”.
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This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.
