• Bitcoin does not need internal administration because it remains stable.
• The governance of cryptocurrencies could attract corruption to the digital market.
By 2008 a new form of commerce endorsed by Satoshi Nakamoto hit the market, including a Blockchain ledger. This new cryptocurrency was called “Bitcoin,” which was a decentralized electronic payment system. This technology stood out because it did not depend on a bank to work.
It is difficult to say how much Bitcoin and other cryptocurrencies have grown since 2008. With more than a decade in operation, many people wonder if cryptocurrencies need to be governed. Researchers doubt the free trade that applies to these cryptocurrencies.
Several of the cryptocurrencies have increased or decreased in price since Bitcoin came out. The promise is that the market will evolve with crypto ushering in a new beginning for digital transactions.
In recent years, the value that Bitcoin has gained is incredible, surpassing $50000 in 2021. This rise in price since its inception has made many traders get rich through the process.
The cryptocurrency goal is to bring an autonomous system. The decentralized market for transactions offered by Bitcoin is rooted in the Austrian Economics school. Then this system was embraced by Silicon Valley’s libertarian tail.
Investors see Bitcoin as a way to make secure, functional transactions without depending on a centralized entity. Although transactions are safe, it attracts a big problem, software improvement.
Hard Fork Analysis
ORISE member Benjamin Trump did a study that shows that cryptocurrencies need governance. The study shows a complex analysis on 800 Hard Forks, in which errors are seen for invalid transactions. These problems make the cryptocurrency lose steam, and eventually, it is difficult for them to survive.
According to Trump:
“Hard forks are a problem to maintain the operating system and more if you try to keep the cryptocurrency for daily transactions.”
Trump is very concerned about these problems and points out these fork increases are an obstacle to adopting cryptocurrencies.
Bitcoin excels in cryptocurrencies
Many analysts agree with Trump’s views, although this measure on cryptocurrency may also be exaggerated. At least Bitcoin has remained stable in recognition, trust, and stability, which avoids being governed. Perhaps, new measures will be taken to keep cryptocurrencies stable, but it is unnecessary for now.
One thing that sets Bitcoin apart from other cryptocurrencies is that it need not be governed. By having a transparent, unregulated, and free system, the cryptocurrency gains popularity every day. Bitcoin has become that cryptocurrency that fights against government corruption.
It is expected Bitcoin will handle the shock of its rapid growth. The energy consumption that comes with Bitcoin mining must be regulated. Although it is difficult to say that Bitcoin would be fine without governance, it is also questionable as to if the top cryptocurrency requires this interference.