Solutions for this new centralization INSIDE Bitcoin?

The discourse revolves around the complexities and challenges associated with imposing restrictions on cryptocurrency ownership, particularly focusing on the idea of preventing a single entity from amassing a majority stake (termed as "whales" in the crypto community). The author argues that implementing consensus rules to restrict ownership would be ineffective, drawing parallels with real-world scenarios where regulations are easily circumvented. For instance, the ease with which individuals can misuse others' identities to register multiple SIM cards demonstrates a potential loophole for bypassing any similar restrictions in the crypto space. This analogy extends to the observation of how people found ways around health-related travel restrictions during 2021 and 2022, suggesting that determined individuals can always find methods to sidestep regulations.

Furthermore, the discussion touches upon the implications of enforcing ownership limits through a hard-fork—a significant modification to the blockchain that could lead to the redistribution of coins contrary to the original script rules. Such an action raises concerns about trust and reliability within the cryptocurrency ecosystem. If assets can be arbitrarily reassigned once, stakeholders might legitimately worry about future occurrences, undermining confidence in the system's fairness and stability.

The conversation also delves into the technical aspects of cryptocurrency management, specifically mentioning the Unspent Transaction Output (UTXO) set. The UTXO model is crucial for tracking ownership of digital currencies without the need for accounts, instead focusing on individual transaction outputs. The argument posits that any attempt to enforce widespread ownership changes would not only challenge the foundational principles of cryptocurrencies but could also be rendered moot by the creation of secondary layers and mechanisms designed to evade such controls, thereby restoring the status quo of asset distribution regardless of any interventions.

In essence, the narrative critiques the feasibility and desirability of imposing anti-whale measures within the crypto domain, highlighting both the ease of circumventing such measures and the potential damage to trust and functionality inherent to these digital assets.