# kaal:claim:3411897-028

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

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

**Holds when.**

- applies to 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 - Past, Present, and Future* (2019), Part 2: The Present, Decentralization Neutralizers, page 35

**Cite as.** Wulf A. Kaal, Decentralization - Past, Present, and Future (2019). SSRN: https://ssrn.com/abstract=3411897

**Verify.** sha256 of source PDF `82f0aea026b3e3a526ec51bc073b3b864dc06cd9083ff9c54c550037045edaa9` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Decentralization%20-%20Past%2C%20Present%2C%20and%20Future.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.**

- restates: https://wulfkaal.github.io/claims/3406323-023
- 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.