# Who controls Bitcoin



## john luc (5 Dec 2017)

I have read all the comments here but what I have not seen answered is who controls Bitcoin. federal banks control the currency we use which we all understand but I have not seen anything saying who runs Bitcoin.


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## fpalb (5 Dec 2017)

john luc said:


> I have read all the comments here but what I have not seen answered is who controls Bitcoin. federal banks control the currency we use which we all understand but I have not seen anything saying who runs Bitcoin.



Nobody controls it, it's a voluntary open network. Anyone is free to participate, and the rules of the system are determined by what software the majority (a bit of a simplification) of participants choose to run. It's designed in a way that the participants have more to gain by playing by the rules maintaining the integrity of the system. Integrity and security is maintained by maths and cryptography instead of people in power or regulators.


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## fpalb (5 Dec 2017)

.


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## TheBigShort (5 Dec 2017)

fpalb said:


> Integrity and security is maintained by maths and cryptography instead of people in power or regulators.



I think this is a critical point. The history of finance up to the present day is littered with people in power and regulatory authorities in control, manipulating financial markets, financial products, etc to the benefit of some over others.
If bitcoin (or other digital currency) can deliver a financial system outside the control of any one person, group of people, or institution, then we are truly seeing a revolution in the international monetary system.
On the other hand, such a system will come under sustained attack over the coming years.
Can bitcoin withstand government interference if the status quo is to be maintained?


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## Merowig (5 Dec 2017)

TheBigShort said:


> I think this is a critical point. The history of finance up to the present day is littered with people in power and regulatory authorities in control, manipulating financial markets, financial products, etc to the benefit of some over others.
> If bitcoin (or other digital currency) can deliver a financial system outside the control of any one person, group of people, or institution, then we are truly seeing a revolution in the international monetary system.
> On the other hand, such a system will come under sustained attack over the coming years.
> Can bitcoin withstand government interference if the status quo is to be maintained?



Let me guess - should Bitcoin go against the wall and revert to its real value (zero of close to it) it will be the fault of the evil central bank, the government etc and not of the people who woke up from their hysteria?

I doubt that Bitcoin will be able to deliver a financial system.... e.g. who would be so crazy to borrow (or lend) in Bitcoins or get a mortgage in Bitcoins?


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## fpalb (5 Dec 2017)

A world without mortgage debt... oh the humanity!


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## TheBigShort (5 Dec 2017)

Merowig said:


> Let me guess - should Bitcoin go against the wall and revert to its real value (zero of close to it) it will be the fault of the evil central bank, the government etc and not of the people who woke up from their hysteria?



Cannot say yet. You may be correct, perhaps it will crash in price, maybe back to €1 or less, or even zero. It is pure speculation.



Merowig said:


> I doubt that Bitcoin will be able to deliver a financial system.... e.g. who would be so crazy to borrow (or lend) in Bitcoins or get a mortgage in Bitcoins?



I'm doubtful too. Doesn't make me right though does it?
You would be crazy to borrow or lend in bitcoin, today at least.
Perhaps the parasitic debt based monetary system is coming to an end?


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## Merowig (5 Dec 2017)

Hint: There is a big difference between taking (reasonable) debt for buying a house and living of credit cards and financing holidays etc via debt.

So it looks like that we can come to the conclusion that even almost 9 years after its introduction, Bitcoin is still not able to deliver a financial system as people are crazy enough to buy them hoping to make a profit when selling / speculating - but are not that crazy yet to take or issue debt in Bitcoin.

Also companies are taking loans/ or issuing bonds for financing in order for take overs/ projects/ orders. Or companies need start up capital. Or for invoice financing...

Debt is here to stay (about Bitcoin I am not sure). So far you can't pay your tax in Bitcoin, and practically you can't issue or take debt in Bitcoin. But here some are claiming Bitcoin is delivering a financial system... the proof (number of daily transactions and the points mentioned earlier) indicate this is clearly not the case.


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## ant dee (5 Dec 2017)

There are p2p lending platforms that use bitcoin. Default rate is enormous and the platforms go out of business. There are a couple of them left but combine the price increase, little background checks, pseudonimity of bitcoin, little to none legal help to collect a bitcoin debt etc, pretty much everyone is defaulting. Mainly a failure so far... Scammer's paradise.
Companies can take out financing by issuing their own tokens, startups can make a crypto - IPO, called an Initial Coin Offering. Again, scammer's paradise.

We will get those right though.

Objectively, the only things cryptocurrencies do right so far are immutable, censorship-resistant, permission-less, border-less transfers. Maybe a few more things, but that just my personal opinion anyway.

We don't need to destroy the banks, bankrupt the governments etc etc. All we need is for all the people around the world to have a choice, to be able to exit the current financial system forced upon them, to be able to choose another one.
Sure we here are fine now. What happens though if we are 3-4 elections away from becoming like Venezuela?


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## fpalb (5 Dec 2017)

Very well said ant dee. I will add that in 1990 the internet did not provide TV channels, or radio stations, or twitter or music streaming services, but it provided the basic platform on which all of those things would be provided eventually, because it was global open permission-less network which means anyone is free to try and innovate on top of it. This is a powerful thing. And as ant dee mentioned people are already trying things in every direction ICOs, alt-coins etc. Most will fail, but what will the winners look like?

What would the internet have been if instead of letting anyone create a website, there had been a government deciding what websites were built?


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## Lightening (5 Dec 2017)

Hi 

I wonder can you re phrase your post! 

Are you saying they will write to you end of month to say "if" you are impacted!


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