Why was Bitcoin created? Ask 10 people and you’ll most likely get 10 different answers. Bitcoin solves many problems, but what’s its greatest purpose?
I wrote an article last month titled, "Bitcoin -vs- Bitcoin Cash". It contained some of the information found here, however, this is important enough to warrant a completely separate, stand alone article with no distractions.
Many people today are investing in bitcoin solely to make money. I’d venture to guess 9 out of 10 bitcoin holders have no idea just how important this invention is to the world’s financial system. Keeping that in mind, lets dive right in...
Why was Bitcoin created?
Most people in the crypto community know the name Satoshi Nakamoto. While we know his name, the creator of Bitcoin has managed to remain anonymous. We may not know who this individual is, but most agree he’s a genius. Not just for creating Bitcoin, but for the vision he outlined in his white paper. If I could sum up Nakamoto’s vision in one word, it'd be “FREEDOM”.
Let's take a step back and look at most of the world's financial system today. No matter which country you live in, the value of government currency is at the mercy of politicians. The average citizen has little to no control over how their tax dollars are spent, or how much money their government prints.
Regardless of where you live, everybody is subjected to a system with which they don’t always agree. The truth is, all nations manipulate their currency. The degree may vary, but all of them do it. Politicians promise the world if you’ll just trust them with your tax dollars. They then waist most of your money on bloated government programs or rewarding their donors. This leaves tax payers with massive debt that’s almost impossible to repay. A 2014 gallop poll revealed Americans say government waists 51% of their tax dollars. In other words, over half of your tax dollars go towards needless and/or corrupt spending practices. Can you imagine running a business that way? You’d be out of business in less than a week. Yet somehow, governments all over the world get away with this year after year.
Source found here: http://news.gallup.com/poll/176102/americans-say-federal-gov-wastes-cents-dollar.aspx
As government debt increases, eventually there’s not enough tax revenue to pay it back. So what do these “wise” politicians do? They print more money in order to inflate away the national debt…and this happens over and over again.
Why is this a problem?
Because the more money that's printed, the less YOUR MONEY is actually worth.
This is most obvious in nations like Venezuela where hyperinflation has exploded over 440,000%. In The United States, the national debt has risen over 150% in the last decade. The federal reserve keeps printing money to keep up with out of control government spending. This is true in most countries today. At this rate, many government currencies will soon not be worth the paper they're printed on.
https://www.bloomberg.com/news/articles/2018-01-18/venezuelan-hyperinflation-explodes-soaring-over-440-000-percent
So how does Satoshi Nakamoto’s vision free us from government corruption and mismanagement?
It creates an open source, digital currency that’s controlled by EVERYONE…and therefore NO ONE. It goes even further by limiting the number of Bitcoin that can ever be created to 21 million. That means a currency free from government corruption and inflation. A currency that’s, in a word, DECENTRALIZED. This is the most important part of Satoshi Nakamoto’s vision. In my opinion, Decentralization is what gives Bitcoin most of its value. Like gold, Bitcoin gives people a place to invest their money as a hedge against inflation and government mismanagement. It also gives people the freedom to send money to who they want, when they want. You no longer need to go through a middle man (banks) to access your wealth. Furthermore, no one person can change Bitcoin’s core structure. Bitcoin has no CEO and its code is completely transparent (open source). You can clearly see why anything threatening the decentralization of Bitcoin would be a direct threat to Bitcoin itself. If power over Bitcoin is shifted away from the masses and into the hands of a few, its true value will disappear.
You can now see why Bitcoin is so much more than just an alternative currency. It’s purpose is to free people and give them back control of their lives. This is why so many governments around the world feel threatened. They dismiss bitcoin as a "Ponzi scheme". You want to know a dirty little secret? The real Ponzi scheme is government currency. Eventually, Bitcoin will expose that hard truth. I recommend you plan accordingly.
THE END
If you're interested in reading my article titled, "Bitcoin -vs- Bitcoin Cash, The Great Scaling Debate", you'll find it here: https://steemit.com/bitcoin/@workin2005/bitcoin-btc-vs-bitcoin-cash-bch-the-great-block-size-debate
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Disclaimer: I am NOT a financial advisor and this is NOT financial advice. Please always do your own research and invest responsibly.
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