Why Bakkt, Fidelity and ETFs Bitcoin will harm the cryptocurrency? EA

In a recent publication, Diar is the founder of cryptocurrency Dogecoin Jackson Palmer has condemned the current changes in kriptonyte. In particular, he spoke about the launch of the custodian of the platform Bakkt and approval for a Bitcoin ETF. The opinion he argues that many are investing great hopes in events that largely depend on government decisions and interest of institutional investors. But I would have to take a step back and think.

According to Palmer, originally there were three pillars of cryptocurrency: centrosoyus, transactions without a system of trust and opportunity for everyone to check transaction history. This is the basis of technology and the essence of decentralization. Therefore excessive dependence on the government and interests of institucionales contradict the essence of cryptocurrency.

We have to depend on banking institutions – the epicenter of the real centralization. It leads us away from the full implementation of the decentralized infrastructure of Bitcoin.

Palmer claims that if suddenly someone grab Coinbase or exchange goes down, all users are immediately denied access to the so-called decentralized network of Bitcoin. That is, a centralized organization would have the authority and right to control the access to decentralized cryptocurrencies. They will be able to block not only individual users but also entire structures. Think how absurd it sounds.

Palmer also explains that the emergence of institutional custodial services by type Bakkt, Fidelity and reduces the reliability Coinbase cryptocurrency transactions. Because these platforms are in full control of investor funds even if it does not provide access to private keys.

Recall that many participants in the community link the approval of the ETF and getting started large companies with cryptocurrencies with the growth rates. Do you agree with them you? Go to the discussion in cryptcat.

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