# kaal:claim:3406323-023

**Claim.** Because cryptocurrencies embody a transferable store of value, the exercise of power over that value inevitably leads back to centralization through economies of scale, creating core points of attack that undermine the very nature of decentralization.

**Type.** failure  **Support.** argued

**Holds when.**

- any currency or transferable store of value, not only cryptocurrencies

**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, *Decentralization - A Primer on the New Economy* (2019), V. Obstacles, page 13

**Cite as.** Wulf A. Kaal, Decentralization - A Primer on the New Economy (2019). SSRN: https://ssrn.com/abstract=3406323

**Verify.** sha256 of source PDF `6293780b57a1ae1de17ec00f99cc94295d4f72ea4d08b17a5c08c44772b221db` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Decentralization%20-%20A%20Primer%20on%20the%20New%20Economy.pdf

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

**Topics.** decentralization, economics, consensus-and-security

**Keywords.** recentralization, store-of-value, economies-of-scale, attack-surface

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3411897-028
- extends: https://wulfkaal.github.io/claims/3405401-023
- extends: https://wulfkaal.github.io/claims/3266953-012
- extends: https://wulfkaal.github.io/claims/3405401-022

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