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What is decentralization in Bitcoin?

Anyone who has heard of bitcoin and other altcoins has probably also heard that decentralization is what makes these crypto assets valuable. With no one in control, these systems are able to operate in a permissionless manner. What does decentralization really mean in the context of bitcoin?

Should you entrust your bitcoin to a centralized institution?

This is especially true if you are entrusting a centralized institution, such as Coinbase, with the private keys associated with your bitcoin.

Should investors consider the level of decentralization behind altcoins?

Looking ahead, investors should consider the level of decentralization behind any altcoin they’re thinking about purchasing on an exchange. Without a proper amount of decentralization, the point of a particular coin or blockchain project can become unclear. Get Kyle Torpey’s “The Big Picture” every week in your inbox.

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