The decentralized cryptocurrency was exclusive, but gradually it is becoming the same monotonous one. There is no revolutionary change in what happened with the decentralized cryptocurrency. Cryptocurrencies have always been famous for the reason that it has the underlying blockchain technology involved in it. The decentralized factor of this currency makes the cryptocurrency stand out in the crowd of the other currencies.
But the decentralized system is gradually losing the charm, and now people do not find it as exciting as it used to be. Hence, it is said that the decentralized cryptocurrency is dead. We will take a dig as to how it is being said so.
Rewards Will Create Inequality
When you allow someone else to run your network, then you are giving away your powers to someone else. When you give away your power, the entire system becomes unbalanced naturally. If you have walked into the field, then you will realize that there are few influential players and many powerless players. The system will lack if there are more powerless miners and less powerful miners.
Bitcoin already faces this problem, very few miners mine the maximum amount of the bitcoin. This itself makes the system pretty weak, plus on the other hand, you need to give away rewards, which also makes it even more vulnerable.
Inequality Will Cause Centralization
Cryptocurrency has become another activity of the wealthy ones to invest in. It also means that the decentralized currency, which seems to be decentralized, is ultimately controlled by the ones who can afford to buy it. These wealthy asset holders are the ones who are manipulating the currency largely. As long as mining of the currency pays off, it would be broadly accepted by all means.
The only motivation the miners have is the extra reward. This keeps them running to do the same work year after year. The miners do not care about the coin; all they care about is the reward they get. They do not care if bitcoin is good or altcoins are good. They care about the coins which they get after mining the cryptocurrencies.
The bottom line is that even if some developers decide to develop the bitcoin mining system, the miners will not help them do it. The miners will stick to their selfish motive, and they would want to mine more coins and get rewards like they do and control everything in their hands.
Centralization Would Kill Cryptocurrency
There are very few individuals who control the cryptocurrency’s destiny. This means that there is no such difference between the cryptocurrency and the current monetary system that we have. In fiat currency, you have a central bank; in cryptocurrency, you have primary miners.
The power was in the hands of the miners, and the miners have successfully killed all of that. The miners ultimately manage each of the cryptocurrencies. They are no longer decentralized as we had thought it would be. From now on, whichever coin comes out, all of them are destined to the same fate.
We Can Understand the Better Future
After knowing what is happening and what is yet to come. I hope all that you expect is that the cryptocurrencies hold on to their values. This is only possible if they remain decentralized under all circumstances.
No one must be allowed to disobey the current system or rather the most initial system. There must not remain any difference between users and the miners. Each member should have an equal right, and they must be treated equally.
We need to stop the rewards; only then the inequality would be curbed. Once the difference is terminated, then you can also prevent the decentralization from dying. We live in an age where we are the most jealous kind of species, and we look for more and more money. If we want a better future, we will have to stop using the asset we are doing. Each step taken today will result in a better future.