Ten years ago, Satoshi Nakamoto gave birth to Bitcoin, the coolest kid on the block since the World Wide Web. But the name Satoshi Nakamoto is a pseudonym.
To this very day, people speculate on who the genius inventor of Bitcoin really is, and why he’s so enigmatic.
Back to the Beginning
At the end of October 2008, a ground breaking whitepaper was published. It delved into detail exactly how Bitcoin would operate. Just a few months later, the corresponding software was launched. The first block in the Bitcoin blockchain, the genesis block, was created on January 3rd 2009.
You can download the nine-page whitepaper here.
Satoshi worked on Bitcoin until 2010. He then handed the project over to Gavin Andresen, a software developer.
Fast forward a few years, and Bitcoin has become the most successful electronic cash system in the world. Since its inception, Bitcoin had no system failure, and it’s never been hacked. The system runs reliably, a prerequisite for worldwide acceptance and recognition.
The inventor of Bitcoin is regarded as a genius. Through mining, the so called mining a fundamental problem of electronic currencies has been solved: copying and double-spending the same money twice.
Computers that are mining surveil and confirm valid transactions. As a reward, miners receive newly minted Bitcoins whenever they add a new block of transactions to the blockchain.
In total, 21 million Bitcoin will be distributed to miners by the algorithm until the year 2140. After 2140, no new Bitcoins will be issued. With fixed maximum supply, Bitcoin is a scarce asset. Unimaginable, where the price might move, if only 10% of humanity want to own a full Bitcoin.
Bitcoin received world-wide attention last year when the price shot from $1,000 at the beginning of the year, to $20,000 at the end of the year.
Today we’re at the same level we were at a year ago at around $6,300. The future price depends on many factors. No one can make a serious projection where the price will go moving forward.
Unfortunately, Bitcoin serves as a speculative instrument for many people, who are hoping to get rich quickly. But slowly more people realize the true value Bitcoin offers. It’s a technology that enables one to transfer value online quickly, securely, and without the involvement of third parties. The more people use it, the more valuable it will become.
Many institutional organisations are now starting to look for exposure.
Independent of speculation, the idea and technology behind Bitcoin is leading the way and will succeed in the medium term. With Bitcoin and other cryptocurrencies, people are able to transact online regardless of where they’re based or whether or not they have a bank account. This is innovation at its finest.