There is no limit on how many people can own UTXOs. The only limit is the level of "consistency"... L1 will always be the highest and most expensive, but that doesn't mean that smaller regions are worthless... That is just absurd garbage, if your money is confirmed in the eyes of everyone you trade with on a monthly basis, you have all the decentralisation you need.
At this point I figure, autism is the worst risk to Bitcoin, when people can't see beyond the dichotomy of either global consensus or KYC "show me a video of your buthole to be able to spend" centralisation
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