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The Bitcoin network came into existence in January 2009 when Satoshi Nakamoto released Bitcoin software as open-source code.
On its release, Bitcoin gained traction reaching a peak of $266 per Bitcoin in April 2013.
However, the volatility in the price of Bitcoin and other Cryptocurrencies continues to spark debate, with the main question posed being whether Cryptocurrency is here to stay or if its just a Bubble market that will pass.
In my view, in order to address this question adequately, its important to appreciate the nature of the current Fiat Based monetary system in order to comprehend the difference Bitcoin and other forms of Cryptocurrency can make to Society.
At its core, Bitcoin is a decentralised digital currency whose transactions are authenticated and processed by a collective network.
Bitcoin, transactions are recorded in a Blockchain which is an unalterable public digital ledger that grows with each new transaction. The decentralization of Bitcoin also means that all computers on the network store a copy of the Blockchain.
This also makes Blockchains unsusceptible to error because the information is stored on multiple databases across the network.
Since Bitcoin relies on a Public Digital Ledger. the underlying Blockchain technology can be used for a variety of purposes including Monetary transactions or any transfers of value as well as Public functions like Voting systems where the integrity of the information can be kept intact and safely secured in multiple locations.
The key thing to consider here is that unlike Fiat based currency, there is no Central Government Bank to simply declare or pronounce by Fiat what the value of the currency is because the value of Cryptocurrency is based entirely on the consensus of its users.
This difference has important implications for the future of Bitcoin and Cryptocurrency.
The Future Of Bitcoin and Cryptocurrency
The volatility of Cryptocurrency as well as the potential abuse of the anonymity Bitcoin provides remain a concern.
Nevertheless. since Bitcoin’s release, it has inspired the creation of alternative Cryptocurrencies such as Ethereum, Litecoin and MintChip.
Ultimately, the value of Bitcoin and all Cryptocurrency lies in the fact that they are a way to shift Society away from Centralized Banking and the present Fiat Currency based monetary system.
In my view, this on its own is why we should support Cryptocurrency.
We have already experienced the Economic Recessions and inequality that have flowed from an arbitrary Fiat Currency system based most notably, the US Federal Reserve system.
This system basically keeps Society in perpetual debt because the Debt based generation of money it employs means that there will never be enough actual money to pay off the interest on any currency issued under the present system.
As a result, by shifting the value of currency to a consensus based approach, Cryptocurrency presents an opportunity to restructure Society and Civilization itself.
Whilst there has been criticism of the potential for Cryptocurrency to be abused for Criminal purposes, very little attention is paid to the fact that this criminality exists and is perhaps generated by the Fiat Currency system itself.
We are yet to see how people will conduct themselves with Cryptocurrency outside a Fiat based Economy.
The value of Cryptocurrency is also presently measured against the value of Fiat Currency which is intrinsically worthless in itself, and it doesnt seem logical to dismiss the worth of Bitcoin based on the value of something that is in reality worthless.
Ultimately, Bitcoin and Cryptocurrency allow Society to go back to the basics of consensus based value rather than conducting econ0mic activity based on the arbitrary declarations of the value of Fiat Currency made by Central Governments.
In Century Of Enslavement: A History Of The Federal Reserve, we are presented with a sobering and damning analysis of the current system of Central Banking which highlights the importance of a return to the consensus based system of value offered by Bitcoin and Cryptocurrency.