What Was Satoshi Nakamoto’s Vision of Bitcoin?
In a white paper published in 2008, Nakomoto writes, “A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.”. That statement would be the foundation for all of Bitcoin’s future narratives:
- P2P transactions: The electronic transfer of digital currency between two people was the primary principle behind Bitcoin’s invention. Since transactions are supported by blockchain technology, transactions are immutable as they are secured through encrypted codes. This setting of P2P transactions is carried out without any interference of a central banking system; your money is truly your money.
- Zero transaction cost: Earlier Bitcoin versions aimed to keep transactions free with no fees charged to users. However, this has changed with time; many exchange wallets do charge a small amount for transactions.
- Digital tokenization: The view that anything and everything can be tokenized with digital tokens through Bitcoins. Tokenization will provide a greater degree of liquidity, accessibility, transparency, and quicker transactions.
- Anonymous transactions: Bitcoin’s anonymous transactions took the crypto world by storm; this feature helped grow the coin’s popularity. However, this view took a back seat when chain analysis companies revealed the identity of a few anonymous users.
- Digital Gold: Many users viewed Bitcoins as digital gold; the view was that users could lock their digital currency for the long term and pass it on to the next generations.
- Emphasis on the network: Another popular view was that dependency on the central banking system would be replaced by the Bitcoin network. The banking system would even introduce a new cryptocurrency to jump on the bandwagon since this industry can soon transform into a strong competition.
Vision for Bitcoin Wasn’t Payments, Says Kraken Exec
Dan Held, Business Development Director at Kraken, believed that Bitcoin’s existence shouldn’t be limited to the “made for payments” narrative. According to him, Satoshi’s work from his earlier posts and whitepaper strongly points towards the store-of-value of Bitcoins, which can be viewed as digital gold. On the other hand, Craig Wright, a computer scientist and self-proclaimed inventor of Bitcoin, has a contrasting view, suggesting that the payment network would be VISA 2.0. Many investors and Bitcoin supporters believe that Bitcoin can compete with commodities like gold & silver as well as fiat currencies like dollars & pound. Even the investors and supporters are making good money through Bitcoin trading. You can also make good money through Bitcoin trading; Click Here to know more about it.
The fin-tech world stands divided over Satoshi Nakamoto’s vision for Bitcoin: Was it created to be digital gold or help build a secured payments network without government intervention. World events and techno-politico developments shape the current ecosystem of the crypto space, and cryptocurrency will likely undergo a transformation in the future due to factors that design the very fabric of the industry.