Who Controls Bitcoin?

We know that fiat currencies are controlled by governments and banks. So who controls a decentralized currency like Bitcoin? The answer is hidden in the word “decentralization.”

By definition, decentralization means “moving control of an organization or government from one place to several smaller ones.” The same is true for the Bitcoin network, but instead of “a few small places”, control of the system is transferred to thousands of nodes people who choose to run Bitcoin software on their computers.

No central authority makes decisions regarding the Bitcoin network; instead, everyone on the network makes the decisions. No one owns Bitcoin technology, so there is no hidden brain controlling Bitcoin.

Bitcoin’s Management

Those who control Bitcoin are users around the world. Everyone is free to improve and develop Bitcoin software. Likewise, everyone is free to choose which software version they want to run. However, to create a usable network, users must come together and run compatible versions of the software. In the end, a strong network requires everyone to work within the same rules, and that way Bitcoin consensus is reached by a majority vote.

Bitcoin controls: majority vote. Since all nodes in the network are equal, if the majority decides something, that thing happens.
If you oppose the change, you are free to participate in other systems. The strongest network always wins, so most of the users, miners and developers have an incentive to respect and protect this mutual agreement. It is in everyone’s best interest to keep the network active, safe and sound!

Impact on the Bitcoin Network

So who controls the Bitcoin network? We can say that there are developers discussing how the system should be developed and improved. Others are miners who choose which version of the software they want to run. But still, since there are no nodes or participants that receive any special or privileged treatment, it must be the majority that decides Bitcoin’s future. This is the nature of truly decentralized organizations. And apparently, it works!
To learn more about how bitcoin mining works, check out our guide on “what is bitcoin mining“.

Stay tuned to SinceCoin to learn more about Bitcoin and cryptocurrencies.

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