5 of the top 7 cryptocurrencies are centralized. Is decentralization even important anymore?

These are the top 7 cryptocurrencies by market cap.

1. Bitcoin (BTC)

2. Ethereum (ETH)

3. Tether (USDT)

4. Usd Coin (USDC)

5. Binance Coin (BNB)

6. Ripple (XRP)

7. Binance USD (BUSD)

Only 2 of these are decentralized – Bitcoin and Ethereum.

The goal of Satoshi when he created Bitcoin was to have a decentralized peer-peer payment system.

**So is decentralization even important?**

Decentralization is so important due to so many reasons – the main one being freedom.

At any moment centralized cryptocurrencies can suspend transfers or create 100 million more tokens making your stack worthless.

**Let me rephrase the question, is decentralization even important for a crypto to pump?**

Completely not. As of today, most crypto investors are here to make some quick cash. If you have good marketing, it doesn’t matter if it’s decentralized or centralized.

**What are your opinions on this matter?**

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40 thoughts on “5 of the top 7 cryptocurrencies are centralized. Is decentralization even important anymore?”

  1. Decentralisation is super important for a fairer system. I will not be investing in anything that isn’t heavily decentralised

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  2. Two entities build 75% of Ethereum. Bitcoin is about five entities. I wouldn’t call that decentralized by any means.

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  3. A good litmus test is how often do the network go down? With BTC it’s only gone down twice history. Its current functioning uptime of 99.985% rivaling even Google

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  4. **Counter Arguments**

    1. ⁠ETH + BTC is already 60% of the entire market.

    2. ⁠We are deep in a bear market and 3/7 mentioned cryptocurrencies are liquidity. They’ll drop in market cap when people feel more confident swapping into other currencies again

    3. ⁠The bear market has proven that centralized projects can fall way more then decentralized. ( examples LUNA and SOL )

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  5. My opinion is that stablecoins should be excluded from this analysis as that’s kinda by design, and they’re cryptocurrencies in name only. And 3 of those 5 are stablecoins. Exclude that and ADA, SOL and DOGE enter the scene. SOL usually gets a lot of bad rep for being centralized but I’d argue that the other two are fairly okay.

    That being said, what I think will be more important (although corollary) for each coin is the relationship with its founding entity for the purposes of the Howey Test and classing the coin as commodity vs security. Ripple is famously in court with SEC on that very issue, I believe the likes of Binance and Cardano Foundation/IOHK might have a similar battle ahead of them in the near future if they continue to operate in the US.

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  6. You do realize that Bitcoin and Ethereum account for almost 60% of the market.

    So yea, decentralization is important for more than 60% of the market.

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  7. How is Eth decentralized when the devs keep changing the protocol?

    There is nothing decentralized about it. I seriously don’t understand how people still think this.

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  8. 1 and 2 are decentralized where 3 through 7 are centralized.
    Are they the top 2 because they’re decentralized or because they were first? Difference in use cases also complicates your analysis.

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  9. Decentralization is best for the people long term and aligns with the original purpose of BTC. Centralized crypto can be an investment, but it doesn’t serve the same purpose. Any mistakes in this post I blame on the beer I am drinking.

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  10. I disagree, tokens like XRP was created for use case without promising profit.

    People keep decided to buy because they found it valuable…

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  11. Love it how you stop at 7. Such an odd number. Meanwhile #8 is probably the most decentralized and has plans to go even further.

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  12. Neither Bitcoin nor Ethereum are decentralized. I love crypto and I love Ethereum but let’s be honest with ourselves and each other. The economic incentives built into these cryptos have the effect of actively encouraging centralization. Both PoW and PoS have this problem. Sorry, you have to stop being emotionally attached to that concept. It’s not going to make you any money.

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  13. You’re using a very loose definition of centralization.

    It’s like how American politics became a two party system, but theoretically any party could become the top one.

    There’s no official government party, just unofficial, defacto government parties.

    Likewise in crypto, there’s no official central authorities of these coins, just defacto leaders. The difference is in how easily they are replaced if they stop serving the interests of those they represent.

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  14. I feel like for some projects it really doesn’t matter. I don’t understand the centralization hate vechain gets, when it’s using blockchain technology in the real world. we should be pushing for blockchain adoption, which has valid use cases for centralization and decentralization

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  15. Decentralization is important to me and that’s who I’m here for. Now ask yourself if it’s important to you? Now you know

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  16. What’s with the influx of shit-tier quality posts this week?

    I agree that a lot of people don’t really care about decentralization but four out of seven of these are stablecoins and another is a crypto exchange coin – and you’re talking about whether decebtralization is important for the price pumping. Are you out there trying to pick up USD stable coins on the hopes they might hit $2? Nice.

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  17. The point would appear to be to have it anyway you want, but given btc/eth with this much weight I’d say it’s a toss up

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