Bitcoins Has A Reason To Be Fearful - The Miner Takeover Is Here

We are much familiarized with centralized virtual currency Bitcoins. It has been in news since it was first introduced and many people have presented their views on threat to invest in Bitcoins. This time, the threat is on credibility of Bitcoins as an independent currency, due to something known as a “Miner Takeover”.

Bicoins works on the fact of solving a block chain by various computers by using their resources, which makes the transactions irreversible and thus offer a more secure way as a payment processor. The computers are made to work together via mining pool. GHash, a British- based mining pool is now responsible for more than fifty percent of Bitcoin’s computing power, which could enable them to control the flow of transactions, throw people out of the network and control over everything about the virtual currency. The miners are usually responsible for generating more bitcoins and solving a series of millions of computations in order to confirm the transactions.

GHash is controlled by CEX.IO Ltd. , who ensures that they want to preserve the Bitcoin, for which they will arrange a “round table” meeting in July with an aim to find the solution of this problem and address decentralization of mining.

The value of Bitcoin fluctuates every now and then which makes many people fear to invest in them. Recently, the value dropped by six percent in just a week which makes people fear more about the miner takeover by GHash. However, this is a small fluctuation, which may be just normal. Due to a low payment processing fee as compared to other payment processor such as Paypal and maintain anonymity of users, Bitcoin seems as a better alternative.

How many of us use Bitcoins for transactions? Do you fear about the miner takeover? Let us know through the comments section below.

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