- Khadim Shubber's
The bitcoin drugs trade is highly centralised is based on Bitcoin Laundering by Tom Robinson and Yaya Fanusie. Shubber writes:
just three mixers and gambling sites account for 97 per cent of the volume in their categories and 50 per cent of the volume overall.
In short, the illicit bitcoin ecosystem is centered around a small number of services that could be subject to scrutiny, regulation and co-option by law enforcement.
- Nellie Bowles' Everyone Is Getting Hilariously Rich and You’re Not points out that:
The goal may be decentralization, but the money is extremely concentrated. Coinbase has more than 13 million accounts that own cryptocurrencies. Data suggests that about 94 percent of the Bitcoin wealth is held by men, and some estimate that 95 percent of the wealth is held by 4 percent of the owners.Where is the money flowing to the whales coming from? New Survey Reveals Staggering Number Of People Are Buying BitCoin On Their Credit Cards. Poor people's credit cards, that is. Bowles' whole article is very nostalgic for those of us who were in Silicon Valley for the dot-com boom. But this time it's different!
Tuesday, January 16, 2018
Not Really Decentralized After All
Here are two more examples of the phenomenon that I've been writing about ever since Economies of Scale in Peer-to-Peer Networks more than three years ago, centralized systems built on decentralized infrastructure in ways that nullify the advantages of decentralization: