WHO CONTROLS THE BITCOIN NETWORK?

WHO CONTROLS THE BITCOIN NETWORK?

Bitcoin is not governed by any central authority hence nobody completely controls the Bitcoin network. It was invented in the year 2009 by a mysterious man who named himself as Satoshi Nakamoto. Nobody knows, who the real inventor of Bitcoin is since it is not governed by any particular entity or authority. It is run by the people who use it there are many players in this community and each play a significant role. Major players that are involved in the operation of Bitcoins are holders, Bitcoin miners, exchange, and developers.

Holders are those who do not trade Bitcoin they buy and keep Bitcoin for a long period of time. They look at Bitcoin as an investment option with the objective to earn high returns in the future. Bitcoin Miners are the people who use mining software to solve a mathematical problem once the problem is solved the transaction is recorded in the blockchain in return the miner is awarded Bitcoin.

Bitcoin Exchange is the platform which enables people to buy and sell Bitcoin. It ensures liquidity to the investors. Bitcoin software is freely available therefore, any developer can work on it and improve it. No developer can have complete control over the software because all of them have to follow the same rules.

Now you must have got a clear idea of how many players are involved in the operation of Bitcoin and the role that each one play. No one has complete control over the prices. There are many factors that are responsible for the fluctuations in the prices of Bitcoin such as the demand and supply of Bitcoin in the market, government imposing rules and regulations on Bitcoin trading, change in investors perception towards Bitcoin, strict regulations by banks on the purchase of Bitcoin there can be many other factors as well which directly or indirectly have an impact on the prices of Bitcoin.

Since there is no central authority that controls the Bitcoin network the fluctuations in the prices of Bitcoin is highly volatile. The Bitcoin network operates over the blockchain technology which records all the transactions in the ledger once the miner solves the mathematical problem. This ledger is visible to the public and which can be viewed by anybody.

Hence, we can conclude that Bitcoin is a decentralized network which is influenced by various factors which makes it highly volatile and less stable.

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