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Bitcoin is often presented as a fully decentralized system, beyond the control of banks and governments. However, reality on the ground reveals a darker side: technical decentralization exists, but its practical influence over the market has greatly diminished.
1️⃣ Technical Decentralization vs. Real-World Control
At the protocol and network level:
Bitcoin remains technically decentralized; no one can mint extra coins outside the rules, cancel transactions, or control the network.
At the market and financial level:
A small number of major institutions, investment funds, and whales own the majority of Bitcoin.
These entities effectively control price movements, liquidity, and timing of large trades.
2️⃣ Concentration of Financial Power
With concentrated ownership:
The market becomes subject to the decisions of a few major players.
Artificial price fluctuations can be created.
Individual investors often act as mere participants with little influence.
3️⃣ Role of Institutions and Governments
Large investment funds and ETFs wield significant economic power over the market.
Regulatory oversight and government policies further increase market centralization.
The practical reality: the market is dominated by a few major players, even though the network itself remains technically decentralized.
4️⃣ Final Conclusion: Decentralization Is an Illusion
In real-world terms:
Technical decentralization still exists… but its practical importance in the market has been severely weakened.
Major institutions and whales are the actual market controllers.
Bitcoin has effectively become fully centralized in practice.
⚠️ Investor Takeaways
Technical decentralization does not guarantee financial power distribution.
The market is now driven by a small number of institutions.
Any investment strategy must account for the fact that real control lies with whales and major institutions, not individual users.
The dark side of Bitcoin lies not in the code, but in the market reality controlled by concentrated capital. Decentralization has become an illusion in practice.
Article prepared and written by Giovanni – 19 February 2026
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