Cryptocurrencies have been in existence for more than a decade. However, it is not a false claim to affirm that the crypto market is still in its infancy.
Such a young market can attract so many challenges. By extension, this will expose the crypto market to an extremely high level of volatility, with the prices of various cryptocurrencies fluctuating significantly.
After all, when the demand for an asset exceeds its supply, there will be a great surge in price.
To many investors, with proper trading skills, this volatility can be harnessed. Besides volatility, what controls the price of cryptocurrencies? who controls these networks?
While fiat currencies are controlled by banks and governments, it is only right to discuss who controls cryptocurrencies.
This is simply answered by its decentralized nature. Everybody and nobody at the same time.
No authority is available that holds all the decision-making power. It is equally shared among all participants. This article will discuss how the cryptocurrency network works and how the decision-making authority is shared across all users of the network.
Who Controls Bitcoin?
Cryptocurrency networks were designed to remove the need for a central authority. Its decentralized nature ensures that the control of the network is not concentrated on a “single place” but spread among several “smaller places”.
For all cryptocurrencies, rather than transactions including third-party intermediaries or financial activities controlled by a central authority – as in traditional fiat currency transactions – the control of the system is delegated to a plethora of nodes, which include several users who choose to operate the crypto software on their Personal Computers. Simply put, no central authority makes decisions on crypto networks. Instead, all users call the shots.
There is no single owner of the crypto technology. No hidden mastermind controls cryptocurrency. You are given total control over your wallet with BitQT. With this platform, you can determine how and who you trade your coins with and be ensured of your security.
The Governance of Bitcoin
Cryptocurrencies are essentially governed by all users all across the globe. All members of the network are free to develop and improve the crypto software. Besides this, everyone is also free to choose the kind of software version they wish to run.
Yet, it is important for users to come together and operate compatible versions of the software in order to make the technology usable.
Eventually, to maintain a strong network, everyone must pool resources together, and operate within similar rules. That is how crypto consensus is reached: through the majority vote.
This is exactly who controls cryptocurrency: the majority. Since all nodes have equal voting power, if the majority arrives at a decision, it will happen. However, if a user wishes to oppose any form of change, they are free to join other systems.
In this case, the strongest network wins and for this reason, users, miners, and developers have a mutual agreement to protect. After all, every user wants the network to be active and secure.
Influence Over the Crypto Network
Who controls the crypto network? One might suggest that it is the miners, who are involved with how transactions are verified and approved. Some might say that it is the developers, who develop and improve the system. Others might even affirm that it is the investors (or whales), who buy cryptos in huge quantities – affecting crypto prices as a result. Yet, it must be the majority that will arrive at a decision on the future of the network. In a completely decentralized system, no nodes or users are given any form of special or preferential treatment.
Conclusion
Cryptocurrencies, in recent years, have gained so much recognition across the globe. People often wonder how these networks are run. Everyone contributes to the activity that runs in the network, which epitomizes cryptocurrencies’ decentralization. Apparently, this works!
