After being initially published on Oct. 31, 2008, by an unnamed person or organization 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 was created, 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 percent 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. 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, indicating the importance of honest nodes in ensuring transaction legitimacy. Satoshi Nakamoto said it this way:
“We have proposed a system for electronic transactions without relying on trust. They vote with their CPU power, expressing their acceptance of valid blocks by working on extending them and rejecting invalid blocks by refusing to work on them.”
Block 707542 was mined on the Bitcoin network, with a mining reward of 6.25000000 BTC.
As the Bitcoin ecosystem approaches its hard limit, or maximum supply of 21 million BTC, 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:
“Any needed rules and incentives can be enforced with this consensus mechanism.”
Despite continued opposition from a number of governments and institutions, El Salvador will be the first country to recognize Bitcoin as legal cash this year. The long-term impact of Bitcoin on El Salvador’s bloated economy will decide if the asset becomes popular in other countries.
Bitcoin’s and the crypto ecosystems continued performance as viable investments continues to attract investors from all walks of life. Tesla CEO Elon Musk, one of the world’s wealthiest men, has expressed his support for cryptocurrencies at the Code Conference in California:
“It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement.”
Musk also believes that “cryptocurrency is fundamentally aimed at reducing the power of a centralized government,” which can be one of the main reasons for Bitcoin’s slow mainstream adoption rate.