Okay, sure — at first glance, Tether doubling down on Bitdeer seems like a smart business move. Mining stocks are in the dumps, time to buy the dip, amirite? They netted $32 million of equity when Bitdeer’s share price was tanking. Seems like a smart play. We cannot allow ourselves to get blinded by the potential profits. It’s not only a cash grab, it’s about saving the soul of Bitcoin itself. My preferred option on Tether’s deal is to slowly sell it off, bit by bit.

Centralization: Whispers Turn Into Shouts

Your Bitcoin was created out of a longing to escape the grip of centralized authority. This was never Satoshi Nakamoto’s vision of a decentralized peer-to-peer electronic cash system, but rather a development path leading to a few mega-miners controlling the system. Tether’s growing interest in Bitdeer, now giving it control of over 90% of it, puts a spanner in that plan.

  • More power to fewer hands: The more hash rate controlled by a single entity (or a small group of entities), the greater the risk of censorship, transaction manipulation, and ultimately, a compromised network.

You might say, "Tether is supporting Ocean mining pool, isn't that good for decentralization?" It’s a nice gesture, but it hardly moves the needle. A big stake in a firm like Bitdeer could open up a vast amount of soft power. Unfortunately, actions speak louder than words and the money is washing in the direction of more consolidation. Ocean support for crypto mining pool looks like a PR stunt, I’m not buying it!

Small Miners: The Forgotten Foot Soldiers

Let's talk about the little guys – the independent miners, the hobbyists, the ones who believed in Bitcoin's promise of democratized finance. How do they compete when giants like Bitdeer, fueled by Tether's deep pockets, can afford the latest, most efficient mining hardware?

These smaller miners are how we maintain Bitcoin’s decentralization. By serving both long-haul and local markets, they provide network resilience and diversity benefits. As mining has become more capital-intensive, they are being crowded out. Tether's investment, while perhaps boosting Bitdeer's bottom line, effectively kicks the ladder out from under these crucial participants. It’s similar to Wall Street titans devouring Main Street entrepreneurs – efficiency gained at the cost of social fabric.

There’s a common misconception that Bitcoin needs big and well-ran mining operations. Yet these operations are essential to defend the network and pave the way for its expansion. That decentralization sounds great in theory, but in practice gets washed away by the rush of real-world pressures.

Freedoms vs. Needs: The False Dichotomy

Decentralization is security. It's resilience. In fact, it’s the root of the idea on which Bitcoin was first created. Sacrificing it at the altar of efficiency is a short-sighted gamble that could ultimately destroy what makes Bitcoin unique and valuable. It’s not just that we need these things—we deserve them, because they are our most basic freedoms. That freedom to engage with a global financial system permissionlessly, censorship-resistantly, and without the ever-present specter of centralized surveillance.

Remember, Tether has a history. A $32 million investment is a rounding error for them. They have previously been repeatedly investigated, fined, and settled concerning false statements made regarding the backing of USDT. Even though as of 2016 they started doing so with a Big Four accounting firm and publishing the resulting transparency reports, some habits are difficult to break. If we’re being honest with ourselves, that seduction of power and influence is an intoxicating one.

Bitcoin fluctuates between $83,000 and $85,000 recently. The enormous volatility alone is frightening enough to scare off new investors. That's not the real threat. The true danger lies not in blows like these, but in the pernicious erosion of its fundamental values, the stealthy march toward centralization concealed as innovation.

Let’s not make Bitcoin what it was meant to replace in the first place. Demand better, do more, and restore the decentralized ideal. Because if we don't, we'll wake up one day and realize that Bitcoin has become everything it was meant to fight against.

Bitcoin fluctuates between $83,000 and $85,000 recently. The high volatility is already scary for new investors. But that's not the real threat. The real threat is the slow erosion of its core principles, the gradual shift towards centralization disguised as progress.

What can you do?

  • Support decentralized mining pools: Seek out and contribute to mining pools that prioritize decentralization and fair participation.
  • Demand transparency: Hold Tether and other major players accountable. Demand greater transparency about their investments and activities.
  • Educate others: Spread awareness about the importance of decentralization and the risks posed by concentrated power.
  • Explore alternatives: Support and explore alternative cryptocurrencies and blockchain projects that prioritize decentralization and community governance.

Don't let Bitcoin become just another cog in the system it was designed to disrupt. Speak up, take action, and reclaim the decentralized dream. Because if we don't, we'll wake up one day and realize that Bitcoin has become everything it was meant to fight against.