Since the beginning of the internet, humans have relied on banks to serve as trusted third parties to process electronic payments. However, since financial institutions always have the ability to open disputes against past transactions for indefinite periods of time, no escrow process can every truly be complete on the traditional banking rails. With the possibility of chargebacks several years after a trade occurs, the need for trusted third-parties spreads.
Created in 2009 by a pseudonymous cryptographer Satoshi Nakamoto, Bitcoin is the world's first trustless money. It is a purely peer-to-peer cryptocurrency and the first successful implementation of a blockchain. In October 2008, Satoshi published a white paper called "Bitcoin: A Peer-To-Peer Electronic Cash System," outlining his proposal and the mechanics of what we now commonly refer to as Bitcoin's blockchain. The Bitcoin network has run continuously without a hack or notable security breach since its launch on January 3, 2009.
With a fixed supply of 21 million, Bitcoin is the world's first precisely scarce money. Bitcoin gives people living in high-inflation countries the unique ability to protect their financial assets from inflation. Bitcoin has earned an annual rate of return of 198% for a decade, making it the best-performing investable asset class in history.
Stock-to-flow models for Bitcoin show price predictions in the $1 million range for Bitcoin within the next decade, sustained by large institutions warming up to Bitcoin as an inflation hedge and an alternative investment to gold, silver and precious metals. Many analysts praise its digital store of value, earning its reputation as digital gold. Crypto market capitalization hit $2 trillion in April 2021.
Bitcoin is controlled by a decentralized network of miners that dictate changes to the codebase and its energy consumption portfolio. The more CPU power that is connected to the grid, the safer the security for everyone. Bitcoin is a disruptive technology that challenges the status quo in society and helps make money more equitable for everyone.
Bitcoin, and its swarm of cyber hornets, is a technology we all believe will transform the world. Fiat currency is the honeycomb. 🐝