The Satoshi Nakamoto Institute has compiled all of Satoshi’s quotes, emails, code, and forum posts into a convenient database, so future generations can read the wisdom of the creator of Bitcoin. Satoshi may have dropped off the face of the Earth and no one knows for sure who he, she or they are but the wisdom left behind continues to be immortalized. The database stretched all the way back to October 2008 when the Bitcoin white paper was released on a cypherpunk mailing list.
One of the main reasons Bitcoin was created is thought to be the deficiencies of the fiat system. Bitcoin’s launch coincided with the 2008 Great Financial Crisis when the global economy nearly collapsed, due to out of control money printing and immoral investment practices. Satoshi said, “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.”
Further, Satoshi said, “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.”
Satoshi laid forth his plans for a new financial system based on cryptography, to solve the global money crisis. Satoshi said, “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.”
One of the main points of Bitcoin is it has a fixed money supply and a fixed rate of money printing until mining ends, as opposed to fiat which can be printed at will by central banks. Satoshi said, “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 accurately predicts that the Bitcoin price will go up long term due to increasing users: “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.”
Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews
Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.
Image Courtesy: Pixabay
