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11% Of Bitcoin Supply In Coinbase’s Hands: Analyzing The Potential Risks

Author: Content Editor
Coinbase, one of the largest cryptocurrency exchanges, holds 11% of the total Bitcoin supply, which is approximately 2.275 million BTC worth $129 billion. This concentration of Bitcoin within a single entity raises concerns about the potential risks associated with centralization. Critics argue that if Coinbase were to face security issues, legal pressure, or other crises, it could lead to systemic risks. The implications of a disaster at Coinbase, such as a hack resulting in the loss of customer funds, could undermine public confidence in crypto and trigger a bear market. While some experts believe that catastrophic loss is unlikely due to Coinbase's advanced security measures, the risk of custodial centralization remains a concern. The idea of a Bitcoin fork to recover lost assets has been suggested, but experts believe that the decentralized nature of Bitcoin's network would likely reject such proposals. It is important to monitor and prevent scenarios like these to avoid a catastrophe similar to the Mt. Gox incident.

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