One of the reasons that millions of people around the world have been proponents of crypto currencies is the fact that it allows individuals to send and receive transactions without the oversight of a government or financial institution.
However, it appears as though there is some doubt as to whether true decentralization is a lofty ideal. The truth is that there are already companies, such as the Digital Currency Group, that have deep and extensive connections to various crypto currency projects that have allowed it to emerge as a possible “gatekeeper” for the cryptocurrency space, which many might consider a threat to the true principles of blockchain technology.
Consolidation of Power And Wealth
This is certainly a revelation, especially in a world where much of the money and power belongs to a select few. For example, the top 1% of the world (in terms of finances) now owns over half of the world’s entire wealth. This is a jarring statistic, especially considering that there are still billions of human beings without access to banks.
For example, U.S. media has consolidated over the decades, to the point where it is essentially controlled by 6 companies, and this has been the case for some years now.
Is this happening In Crypto?
The truth is that wealth inequality will affect even the crypto currency sector, which is championed as leading human beings into a future where central banks and governments do not have to control your finances.
A Twitter user by the name of @tangleblog, who appears to be a huge proponent of the IOTA project and also runs a website by the name of Tangleblog.com, tweeted about the fact that this is already happening in the crypto currency space. The center of his criticism seems to focus on DCG, or the New York-based Digital Currency Group, which is already easily one of the most powerful companies in the area.
For example, DCG acquired Coindesk, which is widely considered one of the leading companies with regards to crypto currency media and research, and also is responsible for Consensus, one of the most important annual crypto currency conferences in the world.
As a result, one must consider whether Coindesk will report fairly on DCG investments. The tweet clearly points out the conflict of interest, stating: “The DCG is the new establishment. Like a gated community. With their own press…” clearly referring to the DCG’s acquisition of Coin desk.
The infographic points out that DGC has connections to Coinbase and is also an early investor in various crypto currency projects. This suggests that DGC could potentially influence what is listed on Coinbase, which is one of the most-used platforms in the world when it comes to crypto currency.
In addition, DGC’s connection to cryptocurrency exchanges, credit card companies, and the NASDAQ also suggest essentially that they are attempting to become a “central authority” in the industry.
It is clear that @tangleblog is skeptical of DGC’s intentions. He sarcastically points out that this isn’t a real “emancipation from the banks”, and even states, “If this is the big DLT innovation, back to the banks.”
Days later, @tangleblog seemed to stick by his statements, calling those who disagree with him “basement-dwellers”, and insisting that true decentralization didn’t exist.