Cryptocurrency experts dig into the Decentralization of Bitcoin. Is it true as it claims to be?
The Decentralization of Bitcoin
One thing that the most popular cryptocurrency promised its investors, is the Decentralization of Bitcoin. This concept attracted a lot of its current patrons, thinking that with this currency, it is the users that control ng currency, not the banks, not the government, and especially no sole financial institution. Anyone can join, play their cards, invest and trade, transact, a combination of actual money and stock investments.
But the question still sticks, is the decentralization of Bitcoin a marketing strategy, or is it the actual deal. Cryptocurrency researchers dig-in to Bitcoin and see how it circulates to different users, and if there is really a monopoly for this currency.
A typical blockchain consists of three main elements, the wealth/class distribution, hash power/ mining power, and the platform for exchanges.
In wealth distribution, it measures how the users are being distributed according to purchasing power. Despite having big players in the Bitcoin market, it is found out on actual data that still, the majority of Bitcoin users come from small accounts not exceeding $100.
Mining power, Bitcoin transaction passes through miners that verify every transaction of the Bitcoin blockchain. As of now, there is no single company that handles more than 51 percent of the total miners handling cryptocurrency exchanges. Thus, it concludes that there will always be resistance and imbalance in case a dominant group of miners suddenly charge more than the usual percentage for Bitcoin transactions.
Cryptocurrency exchange platforms, the platforms where trading and investing of cryptocurrency happens. We might think that they can monopolize the currencies and impose higher charges whenever they please, but, the good thing with a successful competition, there will always be someone to match your deals.
For now, all these criteria are well met by Bitcoin, still, researchers are constantly testing the water for this cryptocurrency, and for what the future holds for it.