Who Controls Bitcoin?

Who Controls Bitcoin?

There is so much mystery that surrounds Bitcoin.  First, no one knows the real identity of the original developer.  The developer, who could have been one person or a group, used the pseudonym Satoshi Nakamoto.  Satoshi disappeared after a while without a trace.  This makes one wonder, who controls Bitcoin?  For sure, nobody owns the Bitcoin network; users around the globe manage the network. Developers also play a huge part in the Bitcoin network. While miners work out complex puzzles to mine more Bitcoins, developers work to improve the Bitcoin software.

There has been a massive power struggle in the Bitcoin world for a long time now as the two factions try to take control of the network. Just recently, Forbes published a report highlighting the danger of investing in the cryptocurrency. Rumors that an oligopoly would control the Bitcoin network caused widespread panic recently. As you know, the Bitcoin market operates on an equilibrium of competing interests.

What’s the Fuss All About?

Bit Coin

For over two years, there has been a tough debate regarding how to scale the network. On average, the current system can handle several transactions per second with a data limit of 1MB for every 10 minutes.  Participants or if you like the miners, want to increase the block size by raising the data limit.  On the other hand, the developers want to maintain the current 1MB limit but improve the efficiency of the system so that every block will process more transactions.

The participants, who are miners in the ecosystem, process transactions in the network by recording them into the public ledger, the blockchain. Miners get a reward every time they process a transaction known as the block reward (about 12.5 bitcoins). Also, every time a user sends Bitcoin, a miner gets small transaction fees. The developers probably want to push for a decentralized financial system; one that is not under control of any entity, be it the law or a group of miners.

Although the two groups need each other, none trusts the other. They have conflicting interests, and the struggle for power between the two factions is causing uncertainty in the Bitcoin market.

As a consumer, investing in a mysterious cryptocurrency like Bitcoin with no clear center of management can be risky.  Bitcoin has become dangerous since criminals can use it to commit fraudulent activities.  Apart from that, it is exceedingly volatile. Just recently, when the news about the power struggles hit the industry, Bitcoin’s price dropped by 25%.

Consumers want to know the person/company they are doing business with. The want to know background information about the companies they are doing business with.  Rather than invest in a currency you are not sure who controls its network, it is better to go for a currency being controlled by known a management.

OneCoin is one of the cryptocurrencies that offers consumers transparency. There are no mysteries with OneCoin. Users know who is operating the company. So, should you join the OnceCoin family and start transacting with the digital currency, you will feel safe since if anything goes wrong, the management will intervene.  With Bitcoin, you don’t have this guarantee.

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