# kaal:claim:3405401-023

**Claim.** Because cryptocurrencies, like any currency or store of value, entail transferable value, the exercise of power over that value inevitably leads to centralization through economies of scale.

**Type.** mechanism  **Support.** argued

**Holds when.**

- any transferable store of value, including fiat currencies

**Source quote.**

> 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.** Wulf A. Kaal, *Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed* (2019), VI. Decentralized Reputation as the Solution, page 7

**Cite as.** Wulf A. Kaal, Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed (2019). SSRN: https://ssrn.com/abstract=3405401

**Verify.** sha256 of source PDF `bc2d6f0ddc0852fb4085c4543c7c1dec19aaf8745eb67e3acc637e552bd7fb7d` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Decentralized%20Commerce%20%E2%80%93%20A%20Primer%20on%20Why%20Decentralized%20Reputation%20Verification%20Systems%20Are%20Needed.pdf

**Failure mode.** value-driven-recentralization  (family: recentralization-drift)

**Topics.** decentralization, economics

**Keywords.** centralization, economies-of-scale, cryptocurrency, store-of-value

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3266953-012
- extended_by: https://wulfkaal.github.io/claims/3406323-023
- extended_by: https://wulfkaal.github.io/claims/3411897-028

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.