Because power exercised over a store of value inevitably produces economies of scale, cryptocurrencies and any other transferable store of value drive networks toward centralization.
Source quote, verbatim
Because of the store of value entailed in cryptocurrencies (and really any currencies or store of value), exercise of power over such value inevitably leads to centralization due to economies of scale.
From
Craig Calcaterra, Wulf A. Kaal, Gopinath Sivalingam, Reputation Protocol for the Internet of Trust - Conceptual Whitepaper (2018), Reputation as True Decentralization, p. 10 https://ssrn.com/abstract=3266953 · source PDF
Cite as
Craig Calcaterra, Wulf A. Kaal, Gopinath Sivalingam, Reputation Protocol for the Internet of Trust - Conceptual Whitepaper (2018). SSRN: https://ssrn.com/abstract=3266953
Holds when
any fungible store of value, not only cryptocurrencies
Classification
mechanismsupport: arguedfailure: value transferability drives centralizationfamily: recentralization-driftdecentralizationeconomics
Related claims
restated_bykaal:claim:3405401-023 Because cryptocurrencies, like any currency or store of value, entail transferable value, the exercise of powe...
extended_bykaal:claim:3411897-028 Because cryptocurrencies embody a transferable store of value, the exercise of power over that value inevitabl...
extended_bykaal:claim:3406323-023 Because cryptocurrencies embody a transferable store of value, the exercise of power over that value inevitabl...
extended_bykaal:claim:3405401-021 Solving the trust problem in decentralized commerce requires an intangible value system, not a further transfe...
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