Re: Bitcoin cannot be decentralized if the Internet is centralized
Satoshi's invention of a revolutionary form of money that would give people control over their funds back in 2009 (Bitcoin), turned out to be a success. While the cryptocurrency's PoW consensus is partially centralized (mostly dominated by the Chinese), it has a wide distribution of nodes all across the globe. Theoretically speaking, Bitcoin is decentralized where anyone can set up a node to support the Blockchain. With enough capital, it's possible to secure Bitcoin in our homes with sophisticated ASIC machines too.
So far, many people believe that Bitcoin is truly decentralized as "no one" controls it. But the harsh reality is that every single cryptocurrency and Blockchain network depends on the Internet to survive. It's no secret that in today's world, big companies like Google, Facebook, and even Amazon control the Internet. On the other hand, ISPs (Internet Service Providers) have a final say over what people can view or host using the Internet. This means that Internet is centralized, greatly defeating the purpose of Bitcoin and other cryptocurrencies of eliminating the middleman.
For Bitcoin to be truly decentralized, the Internet needs to be decentralized first. Once that's done, you could expect to achieve financial freedom that's out of the scope of oppressive governments, central banks, and large corporations alike. Until then, Bitcoin and all other cryptocurrencies will be subject to the risks of the Internet's centralization for years to come.
What are your thoughts?
It's an interesting line of thought, but I disagree. For one, it's not like it's impossible to do Bitcoin without the Internet. There are already some projects allowing the use of satellites, for example. Secondly, Bitcoin is mainly related to the financial sector. It truly offers a system that depends on demand and supply and nothing else. In this sense, it's a free market. And Bitcoin is decentralized in terms of this price formation first of all. You're right that mining is hardly concentrated in the hands of big players, for instance, and that the Internet is not decentralized while being a medium for Bitcoin transactions. So I believe we can still say that Bitcoin is decentralized, but that it's just not fully decentralized.So far, many people believe that Bitcoin is truly decentralized as "no one" controls it. But the harsh reality is that every single cryptocurrency and Blockchain network depends on the Internet to survive. It's no secret that in today's world, big companies like Google, Facebook, and even Amazon control the Internet. On the other hand, ISPs (Internet Service Providers) have a final say over what people can view or host using the Internet. This means that Internet is centralized, greatly defeating the purpose of Bitcoin and other cryptocurrencies of eliminating the middleman.
For Bitcoin to be truly decentralized, the Internet needs to be decentralized first. Once that's done, you could expect to achieve financial freedom that's out of the scope of oppressive governments, central banks, and large corporations alike. Until then, Bitcoin and all other cryptocurrencies will be subject to the risks of the Internet's centralization for years to come.
What are your thoughts?