The History and Philosophy of Bitcoin
In 2008, inspired by the idea of a decentralized currency and implementing his knowledge of programming, the anonymous creator, known only as Satoshi Nakamoto, created the first cryptocurrency, Bitcoin. At the time, even the most ardent supporters of cryptocurrency could not have predicted the massive success and the massive surge in value and popularity that Bitcoin would experience. It has certainly come as a shock to the many detractors, who are now forced to eat crow on the subject.
But just how did Bitcoin get to where it is today? In this article, we will take a look at, briefly, at the history of Bitcoin, and the philosophy that made it as popular as it is today.
Bitcoin was created by Satoshi Nakamoto, a screen name for the anonymous creator, or creators. The identity of Nakamoto is subject to debate, but what isn’t up for debate is that, whoever Nakamoto is, he had a big idea. In 2008, Nakamoto registered the name bitcoin.org and bitcoin was official by 2009, when the first block of bitcoin was mined, by Nakamoto himself. That same year, the first ever bitcoin transaction occurred, and the first recipient of Bitcoin was Hal Finney, a lifelong cypherpunk, and the creator of the first reusable proof-of-work system. At the time, a single Bitcoin was worth less than a dollar.
Today, a single unit of Bitcoin is worth $55.000, with prospects of that number drastically rising. The massive surge of Bitcoin’s popularity may be owed to the numerous trading sides that have been appearing online. Sites like https://bitql.org/ offer a user-friendly interface, that makes it super easy for new investors to start trading Bitcoin. On top of that, the site mentioned above guarantees the safety of its user base, and is powered by military-grade encryption, ensuring the investors’ cybersecurity.
In his blogs and white papers, Satoshi Nakamoto has identified on numerous occasions as a libertarian, and when it comes to Bitcoin, he has claimed that the main problem he can see when it comes to conventional currency is the trust one has to place in the banking system, and that the banks have not had a clean tract record when it comes to maintaining that trust.
Bitcoin wears its libertarian roots proudly and openly on its sleeve. The root beliefs of libertarianism have to do with self-reliance and minimal, government interference. The decentralized nature of bitcoin means that governments and banks have no control over the cryptocurrency, and so bitcoin traders are left up to their own devices to take care of their funds.
The economic roots of bitcoin can be traced all the way back to the Austrian school of economics, and especially the famed Austrian writer, economist and philosopher Friedrich Hayek. In 1978, Hayek published The Denationalization of Money: An Argument Refined in which he argues for decentralization, and denationalization of money. It is believed by many, including the European Central Bank, that Bitcoin has its roots in this book, and Satoshi Nakamoto has alluded to being a fan of Friedrich Hayek in many of his blogs.
To end the article, let us talk a bit about the creator of Bitcoin, Satoshi Nakamoto. As stated before, the identity of Nakamoto remains a mystery. Many have claimed that they’ve discovered Nakamoto’s identity, including the late John McAffee, who claimed Nakamoto is not an individual, but a group of eleven programmers.
There have been other candidates, however any claims as to Satoshi Nakamoto’s identity thus far have either been debunked, or pure speculation. Though the identity of Nakamoto is uncertain, one thing is certain. Nakamoto came up with an idea which many did not believe in, and they have all been proven wrong, as the massive success of Bitcoin stands as proof of the idea’s genius.