The story behind Bitcoin
Satoshi Nakamoto, an unidentified persona, person, or organization, first introduced Bitcoin. Numerous speculations surrounding the presence of Nakamoto makes us wonder, and no conjecture is more believable than others. To make up an opinion, we need to better understand the story behind Bitcoin.
The Whitepaper
Nakamoto or an associate registered the domain name bitcoin.org on the 18th of August 2008. A whitepaper was later announced titled; “Bitcoin: A Peer-to-Peer Electronic Cash System” on the cryptography mailing list at metzdowf.com. None of the associated colleagues contributing to the development have ever witnessed Satoshi Nakamoto due to exclusively digital communication.
Bitcoin was developed, put into production, and rolled out. In the beginning, it was exclusively Nakamoto himself mining from his computer. Later on, he encouraged several of the developers to mine. The mining of Bitcoin proceeded to increase; today, there are millions of machines mining Bitcoin.
Moved on to other things
Working on the first version of the software back in 2009, we know that Nakamoto was involved in the initial stages of the development. Nevertheless, a year later, it all ended with an email explaining that he had “moved on to other things.” The lack of background and personal details made it impracticable to find out the actual identity of Nakamoto.
The estimated value of Bitcoin in Nakamoto’s possession may exceed $50 billion, thought to be roughly 1 million Bitcoins. They haven’t moved since they were extracted; Nakamoto would disclose his identity if these were to move. This may indicate that he is either alive and has strict self-discipline, lost control over his wallet, or deceased.
Moving on to the following frequently asked question. Why and what was the reason behind the development of Bitcoin?
The financial crisis in 2008
Bitcoin was invented as a response to the financial crisis in 2008. Banks gambled with clients’ money, disaster struck. This led the authorities to deplete the banks, some of which were saved by taxpayers’ money.
Loans were issued and presented by the bank as something it was not, playing with non-existing money. The authorities printed money to such a degree that they now are caught in a spiral forcing them to print innumerable sums to keep up the facade.
Printing massive amounts of money will sooner or later lead to crippling inflation. 30% of USD circulating today was printed within the last 12 months, and this mainly goes straight into the stock markets. There is inevitable inflation ahead of us.
Bitcoin, the new gold
Companies making up the index on the stock exchanges have increased their earnings by 30% in the last ten years. Their valuation has increased by 400%; the money does not come from increased profits. The funds must originate somewhere, and which can protect us from the inevitable inflation. It has previously been gold, by which is limited. Gold has always been a safe “value” that has been a security against ordinary money. In the last ten years, gold has decreased in market value. Bitcoin, on the other hand, has risen one million% in the same time.
The myth of Satoshi Nakamoto lives on
We may never know who Satoshi Nakamoto is, but we do know his work will continue to grow and have a significant impact on the future.