kaal:claim:3782198-024

Bitcoin proved that a decentralized peer to peer network can manage valuable assets without a central authority, but the centralizing force of competition concentrated power anyway, as economies of scale produced large mining farms in place of millions of individual members maintaining the ledger.

Source quote, verbatim
But the centralizing forces of competition led to concentration of power in the Bitcoin network, as econo- mies of scale led to large computer farms devoted to mining for bitcoins, instead of millions of individual network members maintaining the ledger on their laptops.
From

Craig Calcaterra, Wulf A. Kaal, Contemporary Decentralization (2021), Blockchains, p. 21
https://ssrn.com/abstract=3782198 · source PDF

Cite as

Craig Calcaterra, Wulf A. Kaal, Contemporary Decentralization (2021). SSRN: https://ssrn.com/abstract=3782198

Holds when
Classification

failuresupport: arguedfailure: recentralization-through-mining-economies-of-scalefamily: recentralization-drifttokenomicsdecentralizationeconomicsconsensus-and-security

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