BlackRock’s Bitcoin Video Stirs Controversy Over Supply Claims

A recent educational video from BlackRock about Bitcoin has sparked significant debate, particularly over one line: “There is no guarantee that Bitcoin’s 21 million supply cap will not be changed.”

Public Reaction and Misunderstanding

HealthRanger from Natural News expressed concerns, stating, “Bitcoin has become far too centralized, and now the wrong people largely control its algorithms.” He suggested there is a plan to alter Bitcoin’s supply.

The Real Story: BlackRock’s Influence is Limited

This claim is exaggerated. The assertion made in BlackRock’s video serves as a legal disclaimer, not an indication of a plot to inflate Bitcoin’s supply. Even if the company wanted to, it does not possess the authority to change the fundamental principles of Bitcoin.

The Foundation of Bitcoin

The 21 million cap on Bitcoin is a core tenet of its existence—it’s not something open for negotiation. The Bitcoin ecosystem, including miners, developers, and nodes, functions on this principle. Despite BlackRock’s considerable holdings of over 500,000 Bitcoin through its ETF, it holds little sway over the cryptocurrency.

Understanding Control in Bitcoin

Bitcoin operates on a proof-of-work (PoW) basis. Regardless of how much Bitcoin BlackRock possesses, it is the network of economic nodes that retains power.

A Hypothetical Scenario

Let us consider a scenario where BlackRock attempts to propose a change to Bitcoin’s supply. The network of nodes would reject such a change outright. Bitcoin’s history supports this outcome. For instance, during the Bitcoin Cash fork, Roger Ver, despite his significant influence and Bitcoin holdings, saw his version of Bitcoin fail because the majority did not support it.

The Nature of Bitcoin’s Decentralization

If Bitcoin could fall under the control of an organization like BlackRock, it would have failed long ago. Even powerful entities like the U.S. government cannot dictate terms simply by acquiring a portion of Bitcoin. Its decentralized structure ensures that no single authority can impose its will.

Conclusion: No Cause for Alarm

We should not be overly concerned about BlackRock potentially “changing” Bitcoin. Their influence is limited. Attempting to push for protocol changes would meet resistance from the broader network. The decentralized nature of Bitcoin stands as its strongest protection against any centralized control, ensuring that neither BlackRock nor individuals like Michael Saylor can alter its core principles.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.