Satoshi Nakamoto, the anonymous creator of Bitcoin (BTC), once explained why he believed the digital currency was unlikely to fail in comparison to previous similar products.
His explanation, posted on the Nakamoto Institute website exactly 14 years ago today, outlines the unique features he envisioned would set Bitcoin apart from earlier attempts at creating digital currencies.
Satoshi acknowledged that many people dismissed ‘e-currency as a lost cause’ because of the failures of centralized systems in the 1990s, arguing that they were centrally controlled, an aspect that doomed them to failure. In contrast, he believed Bitcoin’s decentralized, non-trust-based system makes it more resilient to failure.
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“A lot of people automatically dismiss e-currency as a lost cause because of all the companies that failed since the 1990’s. I hope it’s obvious it was only the centrally controlled nature of those systems that doomed them. I think this is the first time we’re trying a decentralized, non-trust-based system,” Satoshi wrote.
Nakamoto’s Bitcoin’s plan
Notably, the quote by Nakamoto has gained prominence in the crypto circles as it highlighted the anonymous creator’s plan to establish a system that can act as an alternative to traditional finance.
As reported by Finbold, Nakamoto was also involved in Bitcoin transactions. In particular, 14 years ago, the first Bitcoin transaction was initiated by Nakamoto, who acted as the sender.
The transaction on January 12, 2009 saw Nakamoto transfer 10 BTC to computer scientist Hal Finney, the first-ever recipient on the Bitcoin blockchain.
In line with Satoshi’s projection, Bitcoin has evolved to become a global phenomenon at one point, controlling a market cap of about $1 trillion. Indeed, Bitcoin’s features have made it an attractive alternative to traditional currencies and payment systems while getting use cases such as an investment product, or more recently, also offering DeFi utility.
With that being said, Bitcoin’s journey has been hampered by various obstacles, including regulatory uncertainty and high price volatility. However, the asset has still managed to stand out among the best-performing assets over the past decade.
