Bitcoin is said to have been hijacked by financial capital. What is the reason?

The idea that Bitcoin has been “hijacked” by financial capital refers to several key reasons:

1. Centralization

Bitcoin was originally designed as a decentralized digital currency, but the concentration of mining power and the rise of large exchanges have led to increased centralization. Large mining pools and exchanges can significantly influence Bitcoin’s circulation and price.

2. Involvement of Major Financial Institutions

Traditional financial institutions and investment funds have entered the Bitcoin market, injecting large amounts of capital and attempting to exert control over the market. This has made Bitcoin’s price movements more closely tied to traditional financial markets, increasing the risk of price manipulation.

3. Financialization

Bitcoin is increasingly being treated as a traditional financial product through ETFs (Exchange-Traded Funds) and futures contracts. This has strengthened its role as a speculative asset, moving it away from its original purpose as a decentralized currency.

4. Regulation and Control

Governments and financial regulators worldwide are strengthening regulations on cryptocurrencies, including Bitcoin. While this can enhance market stability, it also contributes to financial institutions gaining more control over Bitcoin, potentially limiting its freedom.These factors contribute to the criticism that Bitcoin is moving away from its initial vision of being a decentralized and free currency. However, some argue that these developments are part of Bitcoin’s evolution, making it more widely accepted in mainstream finance.