Feb 05, 2021

Bitcoin Coming Close To Consensus On Taproot Upgrade

Cryptocurrency is a very diverse and volatile market, making it hard to keep up to date on each and every token. It is vital to be able to ask simple questions to decide where to invest and what to avoid. One such question is simple but underrated.

The topic we are talking about is the decision making process. Before you buy a cryptocurrency, you should ask "who decides how many of the tokens will be issued and what further features will be developed?".

Not being able to find an answer to this question is a big red flag. If such decisions are made in a very centralized way by a small group of people, you should also be careful. A proper solution should involve the community, either directly via mining or voting, or indirectly by its representatives.

Decentralized control is better, both to avoid scams and for regulatory reasons. Centralized cryptocurrencies like XRP can be at some point classified as unlicensed securities.

Bitcoin is a good example of a decentralized steering process. You can find an example of it in the Coindesk article about recent upgrade discussions. Such a process of making decelopment deicions is not ideal but contributes greatly to the resilience of the world's biggest cryptocurrency.