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Adam Back, the founder and CEO of Blockstream, has waded into the debate about whether or not Strategy Inc’s Bitcoin model is good for the market. This debate comes as few people believe the massive accumulation of Bitcoin creates potential centralization concerns.
Bitcoin is a free market
Hours ago, an X user with the handle @FreedomMemesIRL noted that he was getting frustrated with Michael Saylor and Strategy.
He posed a rhetorical question as to how he could be buying billions of dollars worth of Bitcoin with no impact on the price of the coin. He also pointed to the fact that Bitcoin was supposed to be widely distributed and not slowly concentrated in one company’s hands. In his assessment, he feels this is wrong.
As a long-term advocate of Bitcoin, Adam Back proposed a simple solution to the complaints, which is to "buy more" if the situation proves inconvenient. The early Bitcoin pioneer attested to the fact that Bitcoin operates on a "free market" that allows anyone to gain exposure with no restrictions.
Before the launch of spot Bitcoin ETF products, retail investors largely controlled the supply, with more intense volatility on record. With institutions now buying, concerns around market manipulation are beginning to rise.
Bitcoin scarcity at play
A few days ago, the total Bitcoin mined topped 20,000,000 units out of the total of 21,000,000 BTC. This feat comes despite the occasional shift in mining difficulty and the gradual pivot to the AI industry by miners.
With accumulation growing, a massive liquidity crunch is currently building for Bitcoin, one that proponents believe would help uplift the price of the asset in the mid- to long term.
As of writing time, the price of Bitcoin was trading for $69,386, down 1.5% in the past 24 hours. The coin has continued to trade in a range-bound motion amid macroeconomic instability.
Dan Burgin
Vladislav Sopov
