The majority of institutional Bitcoin investors don’t seem to know or care about the Bitcoin Core vs Knots debate that has been raging on for the past few months, according to Galaxy Digital’s head of research, Alex Thorn.
The debate centers on arguments about what Bitcoin (BTC) should be used for and whether non-financial transactions should be excluded, and has been sparked by the recent Bitcoin Core v30 update, which some have argued opens up the “floodgate” to spam.
Supporters of Knots nodes said this type of “spam” should be filtered out, as it could open the door for bad actors to embed illegal and immoral content into the blockchain.
However, Bitcoin Core believes that any restrictions could fragment the network, confuse users and contradict one of the key principles of the technology.
More than half don’t know, or care
In an X post on Monday, Thorn said he came to the conclusion after conducting a poll with 25 institutional Bitcoin investors Galaxy works with and found that 46% said they weren’t aware of the debate, 36% said they don’t know or were ambivalent.
Of the remaining 18%, all the respondents signalled a preference for Bitcoin Core’s argument.
“Real capital, real investors, service providers, even government officials see no problem at all or are unaware there’s even a debate at best it’s a hypothetical problem, and their proposed solution does nothing to solve the (fake) problem they claim is real,” Thorn said.
“Even if it is adopted all their legal theories are mumbo jumbo and the fears about them are ones that everyone got comfortable with years ago during early debates over the legality of permissionless decentralized systems.”
Bitcoin poll was small, but representative, says Thorn
The poll only involved 25 institutional Bitcoin investors, so when a user questioned the validity of the poll’s sample size, Thorn responded that it was a “fair question,” but assured the user that his poll reflected what he had been seeing.
“I won’t reveal their identities but I will say yes, and the results from that poll line up exactly with my conversations with other whales, investors, leaders at miners and service providers, and government officials over the last several months,” he said.
Thorn added that while he “didn’t poll miners but I know most of the big ones closely and also nobody cares or is following at all.”
Three outcomes on the horizon
Last month, a Bitcoin improvement proposal for a soft fork sparked outrage on X over a section that appeared to threaten legal consequences for those who reject the fork.
Related: ‘Attack on Bitcoin’ — Bitcoiners slam ‘legal threats’ in soft fork proposal
However, Thorn thinks the argument will end in one of three ways, one of which could cause serious harm to Bitcoin adoption.
The first way, according to Thorn, is “no one cares and they fade into obscurity.
“The second most likely outcome is they incept the problem they fear into existence by scaring everyone away from Bitcoin, and still their fork ideas fail.”
“A third and exceedingly distant likelihood is that their proposed changes become adopted… but even in that unlikely scenario, their solutions fall short. And because their solutions fall short and they will have scared the world into fearing permissionless systems, Bitcoin adoption will be irreparably harmed.”
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