After being initially published on Oct. 31, 2008, by an unnamed person or organisation known only as Satoshi Nakamoto, the iconic Bitcoin (BTC) white paper is celebrating thirteen years of financial upheaval.
The white paper, titled Bitcoin: A Peer-to-Peer Electronic Cash System, anticipated the need for a self-governing, secure, and limited-quantity peer-to-peer online payment system. On January 3, 2009, the Bitcoin network came to life, with each Bitcoin costing $0.0008.
While traditional financial institutions first saw Bitcoin as a danger, thirteen years of community support and a rising user base have turned Bitcoin into one of the most successful internet-era enterprises. After a progressive increase of 7,749,999,900% since its debut, Bitcoin now trades at a consistent market value far above $60,000.
The Bitcoin white paper suggests a way to avoid double-spending without relying on a third party. Moreover, it describes the usage of “honest” nodes that confirm transactions by outnumbering malicious actors in terms of raw computer central processing unit (CPU) power.
Intriguingly, the Bitcoin white paper has 15 “honest” and one “dishonest” mentions. Demonstrating the importance of honest nodes in ensuring transaction legitimacy. Likewise, Satoshi Nakamoto said it this way:
“We presented an electronic transaction system that does not rely on trust”. They (honest nodes) vote using their CPU power, extending legal blocks and refusing to work on incorrect blocks.”
Block 707542 was mined on the Bitcoin network, with a mining reward of 6.25000000 BTC.
The Bitcoin ecosystem approaches its hard limit, or maximum supply of 21 million BTC. Hence, the developer community will need to change the rules in order to reward miners. Who validate Bitcoin transactions on the blockchain. According to the white paper:
“With this consensus method, all required rules and incentives maybe imposed.”
Anthony Pompliano, a well-known Crypto Twitter entrepreneur, joins in the celebrations.
Despite continued opposition from a number of governments and institutions, El Salvador will be the first country to recognise Bitcoin as a legal tender this year. However, the long-term impact of Bitcoin on El Salvador’s bloated economy will decide if the asset becomes popular in other countries.
Bitcoin and other cryptos continue to attract investors
Bitcoin’s and the crypto ecosystems’ continued performance as viable investments continues to attract investors from all walks of life. For instance, Tesla CEO Elon Musk, one of the world’s wealthiest men, recently expressed his support for cryptocurrencies at the Code Conference in California.
“It is not feasible, in my opinion, to eliminate cryptography, but governments may stifle its progress.”
Musk also thinks that “cryptocurrency is basically geared at undermining the power of a centralised government”. This might be one of the reasons for Bitcoin’s sluggish widespread acceptance.
Musk has also had a significant impact on the price of other cryptos, such as Dogecoin (DOGE).