How do we know that traditional fiat currencies are controlled by governments and banks, but who controls a decentralized currency like bitcoin anyway? The answer lies in the word decentralized – which means that the Bitcoin network is managed by nobody and everybody at the same time.
In this article, we will discuss:
Who controls Bitcoin?
By definition, decentralizing means "moving control of an organization or government from one place to several smaller ones."
The same goes for the Bitcoin network, except instead of “several smaller places”, control of the system is delegated to thousands of us – people who choose to run Bitcoin software on their computers.
No central authority makes decisions regarding the Bitcoin network; instead, everyone can deal. Nobody owns Bitcoin technology, so there is no hidden mentor that controls Bitcoin.
How does Bitcoin governance work?
It is users around the world who control Bitcoin. Anyone is free to develop and improve bitcoin software. Likewise, anyone can choose which version of the software they want to run. However, to make it a usable network, users must come together and run compatible versions of the software. In the end, a strong network requires everyone to operate by the same rules, and that's how bitcoin consensus is achieved – by majority vote.
This is who controls Bitcoin: majority vote. Since all nodes in the network are equal, if the majority decides something, it will happen. And if you oppose the change, you're free to join other systems (which is why there are so many bitcoin forks). The strongest network wins, which is why most users, miners and developers have an incentive to respect and protect this mutual agreement. It is in everyone's interest to keep the network active, safe and healthy!
Influence on the bitcoin network
But who controls the Bitcoin network? It can be said that it is the developers who discuss how the system should be developed and improved. Others say that miners choose the version of software they want to run. But then again – it must be the majority who decide on the future of Bitcoin, as there are no us, or participants, who receive any special or preferential treatment.
This is the nature of genuinely decentralized organizations. And apparently it works!