Who's in Charge Here?

One of the main distinguishing features about digital currency you'll hear is that it's a decentralized currency; that means it isn't controlled by any corporation, government or financial institution. While the independence that model lends to cryptocurrency is enticing to investors, it does lead to one often-asked question: If no entity is overseeing the currency, who's running the show for any one specific type?

There are two layers to the answer to that question. First, every type of alternative currency out there has its own website, and there's also the code driving the currency itself to be considered. If you're looking at it from that angle, yes, there are teams of people behind the scenes who take responsibility for the contents of those websites and the performance of the currency's code. So, in that aspect, there are people in charge of each type of digital currency.

The currency itself, however, is a different matter entirely. The developers of cryptocurrency will be the first to tell you that is has no value whatsoever unless you get a group of investors and merchants together who say it does. In a very real sense, the investors in digital currencies are its owners. In this aspect, the industry is somewhat “self-policing;” there are gonna be scoundrels and unscrupulous people who get into the mix, but the majority of investors will work to safeguard one another from those who might have less-than-honest intentions. After all, the investors want to see the currency succeed; it's in their best interest to do everything they can to see that happen. It's one of those “if one does well, all do well” situations. So, as an investor, when you ask who's in charge of your favorite type of digital currency, the honest answer is you.

Thank you for joining us in our look at the unique traits and markets of cryptocurrency! In the next section we  discuss the exchanges devoted to trading in this burgeoning market. You can also meet fellow investors, traders and enthusiasts who are discussing the industry right now now on our SliceFeeds social network, sign up is free and fast.   

Next Cryptocurrency Topic: The Status of Cryptocurrency in the United States

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