Even after ten years since the launch of world’s first cryptocurrency, the true identity of its founder still remains in the realms of speculation. While there’s plenty of speculation regarding the true identity of the man, the fact remains that the veil of secrecy and mystique surrounding this man is still intact. According to a P2P Foundation profile, Nakamoto is claimed to be a man living in Japan who is told to be born on 5 April 1975. He also created Bitcointalk forum and his first messages were posted in 2009, under the claimed name Satoshi.
A compilation of Satoshi’s quotes, emails, code, and forum posts have all been stored on a convenient database by the Satoshi Nakamoto Institute. The main reason being that people should make use of the wisdom he has shared. Though nobody exactly knows who he/she/they are, the wisdom of Nakamoto remains undead. The database begins with the Bitcoin white paper, published long back in October 2008.
Bitcoin is said to be created because of the fall of the fiat currency back in 2008 during the Great Financial Crisis. It was a coincidence or an act of wisdom to have launched Bitcoin at the same time is a matter of debate.
“Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts. Their massive overhead costs make micropayments impossible,” said Satoshi Nakamoto.
Satoshi further stated that fiat currency cannot be trusted very easily.
“The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust,” said Nakamoto.
To solve the global financial crisis, Satoshi came up with a plan of introducing a brand new financial system based on cryptography
“What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party. Transactions that are computationally impractical to reverse would protect sellers from fraud, and routine escrow mechanisms could easily be implemented to protect buyers… I would be surprised if 10 years from now we’re not using electronic currency in some way, now that we know a way to do it that won’t inevitably get dumbed down when the trusted third party gets cold feet,” added Nakamoto.
While fiat currency has no limitation to the number of prints, Bitcoin is limited to supply a fixed amount of money.
“Total circulation will be 21,000,000 coins. It’ll be distributed to network nodes when they make blocks, with the amount cut in half every 4 years. first 4 years: 10,500,000 coins next 4 years: 5,250,000 coins next 4 years: 2,625,000 coins next 4 years: 1,312,500 coins etc… When that runs out, the system can support transaction fees if needed. It’s based on open market competition, and there will probably always be nodes willing to process transactions for free,” Satoshi expressed.
He also predicted that the price of the coin will reach great heights.
“The fact that new coins are produced means the money supply increases by a planned amount, but this does not necessarily result in inflation. If the supply of money increases at the same rate that the number of people using it increases, prices remain stable. If it does not increase as fast as demand, there will be deflation and early holders of money will see its value increase. Coins have to get initially distributed somehow, and a constant rate seems like the best formula,” Satoshi added.
Image via Shutterstock
Join our telegram group