The Times of London Newspaper Headline, ‘Chancellor on brink of second bailout for Banks’ which was published on 3 January 2009 was coded into the Bitcoin Genesis Block.
The Bitcoin Genesis Block is the foundation of the Bitcoin Blockchain and the Headline ‘Chancellor on brink of second bailout for Banks’ being coded into the Bitcoin Genesis Block has been interpreted as the basis for understanding why Bitcoin was created, the problem it was intended to solve and how this should guide the development of the Bitcoin Protocol into the future.
By coding the ‘Chancellor on brink of second bailout for Banks’ Headline into the Bitcoin Genesis Block, a set of rules or guiding principles that the Bitcoin Protocol should always follow and never deviate from was adopted.
At face value, the coding of the Headline ‘Chancellor on brink of second bailout for Banks’ into the Bitcoin Genesis Block suggests that Bitcoin was developed as a response to the money printing that followed from the Government sponsored Bank Bailouts in the wake of the 2008 Financial Crisis.
Despite the arguments advanced by Modern Monetary Theory, the generally accepted effect of money printing in classical economics is to dilute the value of currency in the medium to long term which will be felt through inflation.
From this point of view, the Bitcoin Genesis Block which created Bitcoin was developed in the wake of the ‘Chancellor on brink of second bailout for Banks’ Headline as a means to provide individuals with access to a form of money/value that cannot be diluted by a Central Authority like Central Banks with the Power to print money at any time therefore diluting the value of the money held in the hands of Citizens and reducing its value by inflation through no fault on the part of Citizens.
It is this concern at the core of Bitcoin which is the reason the ‘Chancellor on brink of second bailout for Banks’ Headline was coded into the Bitcoin Genesis Block.
As a result, in order for Bitcoin to stay in line with the fundamental objective contained in the Bitcoin Genesis Block, the Bitcoin Protocol must possess the following characteristics that are essential to maintaining its core function as a reliable, inflation-resistant store of value that is independent from Government or State Control:
- Bitcoin must be Verifiable on the Blockchain;
- Bitcoin must be Scarce so its supply is limited to 21 Million Bitcoins ensuring that scarcity is built into the Bitcoin Protocol;
- Bitcoin must be Censorship-resistant because it allows anonymous transactions: a new quality which has become increasingly important in our modern Digital Surveillance Society.
In addition to the above, in order for Bitcoin to also function as a medium of exchange it must be durable; portable and fungible meaning one Bitcoin should be interchangeable with another of equal value.
All these other Bitcoin qualities/characteristics follow from the Newspaper Headline ‘Chancellor on brink of second bailout for Banks’ coded into the Bitcoin Genesis Block otherwise it would be impossible to address the core concerns of Individual Sovereignty, Liberty and Wealth Preservation inferred by the ‘Chancellor on brink of second bailout for Banks’ Bitcoin Genesis Block Message unless the Bitcoin Protocol ensures that Bitcoin’s characteristics in a free marketplace promote and sustain Individual Liberty and Wealth Preservation both directly and indirectly.
By necessity this requires that Bitcoin also confront and effectively address questions such as Digital Privacy and Censorship all of which have an impact on Bitcoin’s ability to function effectively for the overall purpose contemplated in the message coded in the Bitcoin Genesis Block.
Issues like Digital Privacy and Individual Sovereignty or Ownership of value in the form of data including money predates the Bitcoin Whitepaper and the concerns raised by the ‘Chancellor on brink of second bailout for Banks’ headline which was coded into the Bitcoin Genesis Block.
More particularly, The Cypherpunk movement has since the 1970s been grappling with the issues of Digital Privacy, Security and Money as larger social concerns.
The development and introduction of Bitcoin may be seen as the Cypherpunk solution to these problems in our current Networked Digital world.
In the same way the Renaissance marked the separation of Church from State, Bitcoin may represent another radical shift in which the State and Money are finally separated.
Bailouts executed through Money Printing by Central Banks around the world that followed the Coronavirus Pandemic Shock mean that the systemic economic risks referenced in the Chancellor on brink of second bailout for Banks Headline message coded into the Bitcoin Genesis Block remain.