Tone Vays, a well-known Bitcoin proponent, spoke about Bitcoin [BTC] being unconfiscatable, in a Q&A session during the Tampa Meetup. He also spoke about what prevents countries and exchanges from gaining over 80% to 90% of the coins.
Vays stated that Bitcoin being unconfiscatable does not apply to cryptocurrency exchanges which are going to get regulated. He added that this creates a “big dilemma” as Bitcoin does not have a single price, quoting the example of the price on Bitfinex. The Bitcoin proponent went on to say that Apple stock and S&P 500 have one price because all the stock and supply is in one place, adding that only one exchange has Apple stocks who act like brokers. He said:
“so the problem is when it comes to the Bitcoin ETF I’m not happy with the fact that in order to have like a really stable price of Bitcoin, all the Bitcoin needs to sit in one place. Because that would stop, you know, someone with a few million dollars to move the market on a single exchange and then the rest of the exchanges panic.”
The Bitcoin proponent stated that having all the Bitcoins at one place creates huge risks even though it creates a much more stable market. This includes one single target for hackers, creating a same situation for gold in 1933, wherein the government confiscated gold from any US citizen who owned or traded it.
This was followed by Vays stating that if 50%-60% of Bitcoin are with regulated exchanges such as Coinbase, Gemini or is underlying in ETF, then it is a problem. This is because the governments could have the power to step in and confiscate it. He stated:
“So, I don’t see all of that Bitcoin would be under control of a single government. So, you know, all the government’s have to get together and agree to something which never happens or ah like the US would have to be dominant […] the United States is pushing the superpower limits, countries don’t usually stay as a superpower for over a hundred years”
He went on to say that it is a “concern” that a lot of Bitcoin is under the control of regulators and governments as people could start to lose faith in Bitcoin being a “fully independent and hard money” because it could be confiscated.