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It was Forbes magazine that first talked about the power of decentralization and the power of blockchain, hence the power of Bitcoin. So, the real power control over Bitcoin is hard to pinpoint sometimes. Yet, in times of great fluctuation and price “turmoil”, one group of “Bitcoiners” appear stronger than other.
The so-called “hodlers” or investors seem to be the one who control the real value of Bitcoin. According to analysis by Forbes, they have so much power because of the power they exert on the supply of Bitcoin. Moreover, since investors are most interested in the long-term value of the currency, all major changes that occur in the protocol and “backend” of Bitcoin are supported and majorly influenced by the hodler group. While the Bitcoin community has to agree on a change for it to happen, investors seem to be driving the real value change of the “people’s currency”
Kyle Torpey of Forbes reported:
“In 2017, Bitcoin hodlers’ collective level of control over the network was put to the test as large companies in the space combined with more than 90% of the network hashrate in an attempt to move everyone over to a new network they would agree to call “Bitcoin.”
One very interesting observation is about the relationship between hodlers and miners. The mining community wants to mine the most profitable chain, of course: the one with the highest levels of activity and highest prices, hence the highest liquidity, as well. So really, it is the investors who have most influence on these factors and miners essentially “work” for the hodlers.
In addition, the whole idea about Bitcoin’s bright future is most proposed by long-term investors. While the hard data and technical part of the building and improvement of the currency are all valid and important, the “holders” basically level off the supply once traders start selling amid a “value crisis”. So, as with most asset classes, it is the belief and actual time invested in the currency that makes it so valuable. While the agreement among all members of the community is important, the hodlers seem to be having the last word when it comes to the real value of Bitcoin.