A top crypto proponent pushes back against criticism from Bitcoin maximalists who claim XRP is centralized due to Ripple’s involvement.
Tensions between the Bitcoin and XRP communities have skyrocketed recently following reports that the U.S. government is preparing to establish a national digital asset reserve.
Feud Between XRP and Bitcoin Communities
Ripple is advocating for a level playing field that could include XRP and other crypto assets in the reserve alongside BTC. Meanwhile, some Bitcoin proponents claimed that the company was advocating against the premier cryptocurrency. Consequently, they embarked on a FUD campaign, spreading negative narratives about XRP and Ripple.
For instance, Bitcoin maxi Pierre Rochard of Riot Platforms labeled XRP a threat to the national digital asset reserve initiative. Furthermore, he slammed Ripple for undermining Bitcoin’s decentralization ethos through its control over XRP, particularly its large XRP holdings.
According to the latest quarterly report, Ripple remains the largest holder of XRP, with a holding of over 42 billion XRP.
Critic Says Large Bitcoin Holders Pose Centralization Risk for BTC
As this narrative gained momentum, Lester Pyle, a crypto enthusiast, pushed back against the criticism. In a recent tweet, Lester contended that if Bitcoin proponents are worried about Ripple’s control over XRP, they should also be concerned about the potential centralization risk associated with BTC due to its several large holders.
He cited BlackRock, MicroStrategy, Bitcoin pseudonymous founder Satoshi Nakamoto, and other Bitcoin whales. It is common knowledge that these entities hold large amounts of Bitcoin.
While MicroStrategy holds 471,107 BTC as part of its diversification strategy for its corporate treasury, BlackRock’s iShares Bitcoin Trust ETF holds 582,873.7 BTC.
Additionally, Bitcoin’s pseudonymous creator, Satoshi Nakamoto, owns 1.1 million BTC. In addition to the aforementioned entities, other whales also have large amounts of BTC across different blockchain wallets. Critics see these as contributing to Bitcoin’s potential centralization risk.
Meanwhile, Bitcoin proponents often countered that the percentage of BTC supply these individual entities own is less than 5% of Bitcon’s total supply. This contrasts steeply with Ripple’s nearly 50% supply control over XRP’s max cap.
Yet, Lester declared his support for large Bitcoin and XRP holders, emphasizing that they help to promote both ecosystems rather than harm them.
Furthermore, the user dismissed other concerns about Ripple’s XRP holdings as FUD, urging people to stop spreading negative narratives about the third-biggest cryptocurrency.
