Here’s one opinion that not everybody will agree. I believe Bitcoin is still the most decentralized currency in the world, and it might become the currency of the internet if it stays that way. And no, I am not a Bitcoin maximalist. I am fully aware that nobody can predict the future, and Bitcoin’s popularity might be replaced by another cryptocurrency. But for now, it looks like Bitcoin has that huge advantage over everybody else. Let me explain.
Let’s start with fiat currencies. The problem with fiat currencies has always been about centralization. Currency is about power and control. When that power is centralized in the hands of a central bank, you are basically at their mercy. Many people have been losing their trust in the central banks, and thus they start to look elsewhere. They don’t want one entity to control their whole life and rightfully so. The history of fiat currencies has been full of breaches of trust.
And then, there’s cryptocurrency. Designed to be “decentralized,” cryptocurrencies bring back the power to the people (and again, rightfully so). There’s no one central bank that completely controls the entire ecosystem of a cryptocurrency. It’s much easier to trust a cryptocurrency that is decentralized because you know there’s no single point of failure.
Compare it with the banking system where sometimes you have to wait for hours just to transfer money when the centralized servers encounter some issues. In other words, you need to trust the centralized servers just to be able to transfer your fiat currencies. Cryptocurrencies have a much safer environment in this matter as long as they have distributed nodes all over the world.
Bitcoin vs Altcoins
And when it comes to Bitcoin, I can say it’s still the most decentralized currency, because it has no centralized influence. There are other great cryptocurrencies out there like Ethereum, XRP, BNB, and other big names, but none of them has as much decentralized influence as Bitcoin.
For example, Vitalik Buterin is the founder of Ethereum, and his social media influence pretty much affects the majority of the voices in the Ethereum community. XRP has Ripple as its biggest influence/decision-maker, and so on, and so on.
Bitcoin does not have any “head” because it was created by Satoshi Nakamoto, and nobody really knows who is the real Satoshi. And even if he still exists, he has disappeared from the public face, and thus, he can’t really influence Bitcoin supporters anymore. Read more about บา คา ร่า 1688 เครดิต ฟรี. Also, need to be mentioned that Satoshi never actually sold his 1 million Bitcoins. This is different from centralized figures of altcoins, where many of them have admitted they sold some of their own crypto holdings for fiat.
By having a faceless creator and no centralized figure that can influence everybody else, politically, Bitcoin is still the most decentralized currency in the world. I know the word “decentralization” usually means something else.
Many Bitcoin critics usually say that Bitcoin mining network is controlled by several Chinese-based mining pools, and thus it’s not really decentralized. However, in this specific article, I want to point out the decentralization factor only from political influences.
The Currency Of The Internet
You might be wondering, what’s the relationship between Bitcoin having no centralized figure and the currency of the internet? Well, it’s easy, actually. There are too many “rivalries” and “lack of trust” among people in this world. Countries vs. countries, corporations vs. corporations, and even celebrities vs. celebrities. People simply do not trust each other, especially those that they consider as rivals.
That’s why having a decentralized cryptocurrency with no centralized influence is quite important. Let’s take a look at Libra, Facebook’s cryptocurrency that’s backed by other huge corporations. Many people already criticize it even before its launch only because they don’t trust Facebook. Again, the problem here is that the influence of Libra is too centralized in the hands of Facebook. So, when people don’t trust Facebook, they automatically don’t trust Libra.
We can also use CBDCs (Central Bank Digital Currencies) as our other examples. It’s rumored that the People’s Bank of China is currently developing a digital yuan, Chinese version of cryptocurrency that will have no speculative value. Once again, it might work inside China, but many people outside the country might not trust this digital yuan only because they don’t trust the Chinese government.
Bitcoin As The Solution?
Blockchain technology supposedly helps to eliminate this “trust” problem, but it can only do so when there’s no central figure behind the same digital currency. And at this point, what’s better than Bitcoin in this regard? There’s no one single entity controlling the majority of its pre-mined supply, and there’s no one central figure that can tell everybody else what to do, just like what Twitter CEO Jack Dorsey said, Bitcoin is becoming the internet’s national currency.
You might agree or might disagree with what Jack Dorsey said, but he got the point in his statement. He believes the likes of Libra cannot become the standard currency of the internet because it was born out of a company’s intention. The majority of altcoins are also born out of a company or a foundation’s intention.
More often than not, these altcoin foundations have too much influence on the coins that they helped to create. And when you know a certain figure or group of people have too much influence over a certain cryptocurrency, you have to trust the same person or company before you can trust the coin itself.
Bitcoin And Its Advantage
Being trustless like Bitcoin is quite important because you don’t have to trust any central figure to trust the coin. You only need to trust the code. And that’s exactly why Bitcoin has the most potential to become the standard currency of the internet. When two entities or two countries don’t trust each other, they can just trust a currency that has no known central figure behind it.
Once again, nobody can really predict the future. It’s possible that one day we will have another cryptocurrency with better decentralization elements. However, Bitcoin is leading the race as of today.