Solutions for this new centralization INSIDE Bitcoin?

The sender articulates a strong objection to the notion of controlling who can buy or sell bitcoin, arguing that such measures are overly restrictive and unjust. Instead of confiscating and redistributing coins to align with certain ideals, the sender proposes the creation of a new cryptocurrency that embodies these principles. This approach underscores the value placed on freedom and diversity within the cryptocurrency community, suggesting that fostering alternatives is preferable to imposing constraints on existing systems.

The conversation extends into the challenges of enforcing restrictions on cryptocurrency ownership, specifically addressing the concept of preventing "whales," or single entities, from holding major stakes. Drawing parallels with real-world regulatory circumventions—such as the misuse of identity for SIM card registration and evasion of travel restrictions—the sender illustrates the difficulty of implementing effective consensus rules in the crypto space. The discussion raises concerns about trust and reliability in the cryptocurrency ecosystem, especially regarding the potential reassignment of assets through a hard-fork, which could undermine confidence in the system's fairness and stability.

Furthermore, the dialogue delves into the technical aspects of managing digital currencies, mentioning the Unspent Transaction Output (UTXO) set as a fundamental component for tracking ownership without traditional accounts. The argument highlights the impracticality of enforcing widespread ownership changes, pointing out that such efforts could easily be negated by secondary layers and mechanisms designed to bypass controls, ultimately preserving the status quo of asset distribution.

Central to the discussion is the issue of growing centralization within Bitcoin, a development that contradicts the cryptocurrency's foundational ethos of decentralization. This concern is epitomized by a rejected proposal aimed at combating the influence of institutional and oligarchic centralization. The author seeks solutions to ensure Bitcoin remains decentralized, accessible, and equitable, avoiding domination by large entities or institutions. This challenge emphasizes the need for strategies that can maintain the core principles of cryptocurrencies as tools for financial independence and resistance against centralized control, reflecting a broader vision for the future of digital assets.