Recently, the globally recognized investment management company, BlackRock took a significant step in the world of cryptocurrency by releasing an informative video about Bitcoin. This is a milestone to be celebrated as it marks the recognition of Bitcoin on a colossal platform. However, a particular line in the video caused a stir among Bitcoin X (Twitter) users where it was stated that there is no assurance that Bitcoin’s 21 million supply cap will remain unchanged.
A critic known as HealthRnager from Natural News voiced concerns over this, claiming that Bitcoin has become overly centralized, and its algorithms are majorly controlled by an influential few. He even suggested that these individuals are revealing their future plans through such statements.
However, it’s essential to clarify the misinterpretations surrounding this issue. The uproar caused by the statement is exaggerated and the concept that BlackRock has the capacity or intention to alter Bitcoin’s supply is absurd. The statement, though technically accurate, is merely a legal disclaimer and does not imply that BlackRock is scheming to increase Bitcoin’s supply. Moreover, they lack the authority to execute such a move.
The 21 million cap of Bitcoin is a vital element and is not subject to modification. The entire Bitcoin network, including miners, developers, and nodes, operates based on this fundamental principle. Without it, Bitcoin would lose its identity. Despite being a financial behemoth with over 500,000 Bitcoin in its ETF, BlackRock’s sway over Bitcoin is virtually nil.
Bitcoin operates on a proof-of-work (PoW) system rather than a proof-of-stake (PoS) system. The power lies with the economic nodes and not with Bitcoin holders like BlackRock.
To further clarify this point, let’s consider a hypothetical scenario. If BlackRock were to suggest an amendment to the protocol to increase Bitcoin’s supply, the extensive network of nodes would simply reject it. Bitcoin’s past is evidence of this. Recall the Bitcoin Cash fork proposed by Roger Ver? Despite his substantial influence and holdings, his version of Bitcoin was disregarded, as the majority of the economic actors did not support him.
If Bitcoin could be manipulated by a single entity such as BlackRock, it would have collapsed a long time ago. The U.S. government could easily acquire 10% of the supply if that were the case, but this is not how Bitcoin operates. Its decentralized nature prevents any single entity, regardless of their power, from dictating its terms.
Therefore, there’s no need for concern over BlackRock’s ability to ‘change’ Bitcoin. Their influence has definitive boundaries. Even if they attempted to influence developers to modify the protocol, the nodes would dismiss it. The decentralization of Bitcoin is its strongest asset, and neither BlackRock nor anyone else can alter this fact.
The views expressed in this article are solely those of the author and do not necessarily reflect the views of BTC Inc or Bitcoin Magazine.
