Imagine Tupac Shakur (also known professionally as 2Pac) coming back to discover modern rap music. At least he’ll have some questions,”What the fuck is the ‘Mumble’ rap?” Not that 2Pac invented rap, but he’s certainly a contender for the greatest rapper of all time, so assuming he’d have input is no stretch.
Something similar may happen when Satoshi Nakamoto comes back to discover modern “crypto”. Creating something as elegant and necessary as bitcoin, then realizing later that the market is hungry for countless imitations, can be confusing and humiliating. Nakamoto clearly had a vision.
Based on his own words and the specifics of bitcoin, we should feel confident when speculating on his vision. In other words, what do we think he was trying to achieve for generations to come? We can begin by clearing some general doubts. If his idle coins are any indicator, he was not driven by profits. His anonymity is clearly important to him because even after Bitcoin has become globally recognized, his identity is still unknown, so he is not motivated by fame or recognition (if he is still alive).
He cared about resolving long-standing issues within our financial system, which were clearly articulated during the 2008-2009 financial crisis. It is no coincidence that bitcoin was released to the public at the same time. Origin stories are important, especially when navigating something as confusing as modern cryptocurrencies. Altcoins didn’t exist when Nakamoto was inventing bitcoin, so he wasn’t throwing bitcoin in the ring with other cryptocurrencies, but instead going against the entire fiat network, meaning his vision was much bigger.
Bitcoin is both a reactive and proactive system: an attempt to remove trust from monetary networks and monetary policy by separating decision-making power from individuals and distributing power equitably throughout the community. He should know that bitcoin will eventually get out of his control, which has already happened. No monetary system has proven as decentralized and secure as bitcoin, even after 13 years and the creation of thousands of altcoins.
God knows how many years or decades Nakamoto has seen governments and wealthy individuals abuse the legal system – which is relatively easy to accomplish when centralization is the norm. Give absolute power to anyone (especially over money), and corruption is bound to come to the fore. We are only humans, so the only sure-fire solution is to initially set monetary policy, and enable the system’s security to defend itself against changes, which is the concept and operating standard of bitcoin.
“The fundamental problem with traditional currency is all the trust that is needed for it to work. The central bank must be trusted not to deface the currency, but the history of fiat currencies is full of breaches of that trust.” – Satoshi Nakamoto (February 11, 2009)
He identified an economic vacuum that undermines the quality of almost everyone’s financial situation – inflation. He chose the term “currency debasement” and then went on to design bitcoin in such a way that currency debasement would be nearly impossible. Of all the economic issues, inflation has the most damaging effect on the vast majority of society. Undoubtedly, other economic issues exist and need to be addressed. However, we cannot solve every issue at once, so it is only logical to prioritize.
Nakamoto’s priorities must have been straightforward, as he sacrificed scalability, among other features, to preserve and protect monetary policy. If we cannot change the behavior of those in power, we can completely snatch power from them. Some people benefit from inflation, but most people suffer. The credibility of the bitcoin network is a testament to our ability to put an end to the unjust practice of inflation. Although bitcoin is a complex technology, the monetary aspect is simple – fair and transparent monetary policy, which is a step towards the restoration of economic hope.
Many people live paycheck to paycheck with minimal savings and no investment. Relying on the purchasing power of fiat currency is the norm (and this is also a big problem). Bitcoin as a monetary tool offers equal opportunities to everyone – deposit and save as much money as possible and preserve money, large or small, without the worry of forfeiture or inflation of any amount, that is, the way There must be money. Saving fiat is not profitable, which gives rise to consumerism. If we ever want to achieve any kind of financial progress (especially in the lowest economic classes), our wealth cannot be continuously devalued over time.
Bitcoin fits within the framework of economic equality, which highlights Nakamoto’s intentions. As the network grows and develops, the integrity of bitcoin becomes more apparent. Apart from current and temporary market conditions, owning bitcoin is not risky. We can have high confidence in the prediction of monetary policy (issue rates) and network security, while having peace of mind our currency will not be debated any time soon, which is the exact opposite of fiat currency. Although many altcoins appear solid on the surface, none have the security of bitcoin.
For many people, there is no financial implication more important than preserving what small amounts of money we have. The paycheck is manageable from a living paycheck; The breakdown and further breakdown due to inflation is disappointing. Those who work hard should never fear not having enough purchasing power to afford basic things. Bitcoin’s 21 million supply cap may be the most important feature as we all know that an unlimited supply of fiat currency leads to higher and higher levels of inflation.
One could defend other cryptocurrencies as a solution to the inflation issue, and part of the argument would be valid. Although inflation is probably the biggest problem, it is not the only problem. Nakamoto’s careful selection of protocols aligns with the entire monetary package. First lay a strong foundation, then build. When analyzing Bitcoin as a complete set of monetary instruments, it is undoubtedly better than every other cryptocurrency on the market. We can debate this until Jesus returns, but the market unquestionably decides which cryptocurrency ranks #1.
Nakamoto’s mental state is clear – establishing and distributing sound electronic cash that empowers and maximizes self-sovereignty. Thinking back to the basics of adulthood, people want to work, spend some of their money while living and enjoying life, and save the rest for retirement. As with fiat currencies and altcoins, proper measures were not initially taken to ensure the protection of monetary policy and security, so we have no reason to hold long-term confidence. In other words, shortcuts were taken. Nakamoto was clearly focused on building a strong foundation, which takes time. Since the narrative of bitcoin has barely changed since its inception, early visions of bitcoin are still relevant, and likely always will be.
This is a guest post by Salvatore Norge. The opinions expressed are solely their own and do not necessarily represent those of BTC Inc. either . reflect the thoughts of bitcoin magazine,