If large holders, like ETFs and companies, store 9.53% of Bitcoin’s supply under centralized custody and face theft or loss, they might push for a hard fork to reverse transactions. However, this would conflict with Bitcoin’s principles of decentralization and immutability.
A hard fork is unlikely to succeed due to challenges in achieving consensus, risks of splitting the network, and the precedent it would set for future manipulation. Instead, improving custodial practices, such as using multi-signature wallets, cold storage, and decentralizing holdings, is crucial to prevent such risks and preserve Bitcoin’s trust and decentralized nature.
But If a hard fork to reverse Bitcoin transactions were to happen, it would require a proposal from influential stakeholders, consensus among developers, miners, and the community, and the implementation of a new version of Bitcoin’s software. This would result in a network split, with two competing chains. However, achieving consensus is highly challenging due to Bitcoin’s decentralized nature, and the market may reject the fork, undermining trust in Bitcoin’s immutability. Such a scenario is unlikely due to the strong resistance against changes that compromise Bitcoin’s core principles.
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