I have been doing a bit more research on the crypto universe and thinking about it a lot. One place that I've read a few articles from is https://cointelegraph.com/news/samsung-asic-chips-positive-news-for-miners
When I first started investing in cryptocurrencies, and it's only been a month but it seems longer, I was attracted by 2 things
As far as number 1 goes, the value of my holdings have gone backwards but I determined early on to be a Hodler so the money I've invested is money I'm comfortable with going up or down, although my preference is up. So at this stage I'm still pretty relaxed.
It's with number 2 that I'm getting a bit jittery about, and number 2's is probably appropriate with some of the news I have come across.
What concerns me is what appears to be a continual slide to centralisation. South Korea and China are regulating the crypto markets, the USA and UK are looking at doing the same, and no doubt many other countries around the world will do the same.
I understand that some regulation is required thanks to human, nature which always delivers some who will scam the system. But when government's regulate financial markets they inevitably get advice that is heavily weighted in favour of the established banking system, the very banking system that brought the world to its knees during the 2008 GFC, the same banking system that never paid the price for its criminal behaviour and has continued to enrich itself.
And it is not just regulations that are a threat to crypto decentralisation.
Mining is becoming centralised through organisations like Bitmain, a group that currently accounts for almost 30% of global mining. In addition to this cryptoexchanges are acting like banks with their fees and their positioning as the middle man between buyers and sellers.
So despite the crypto intention of decentralisation there is an undercurrent of centralisation happening throughout the crypto environment.
Let's hope this trend doesn't become the norm.
