Satoshi Nakamoto developed an open-source P2P e-cash system called Bitcoin in 2009.
His concerns about the Central bank debase the currency and creates waves of credit bubbles that damage not only our spending power but also the trust of the system.
His solution was a decentralized system without the need to trust a third-party money system that was purely based on cryptographic proof (verification).
The contribution he made was to invent a system of digital signatures to prevent double-spending and created a new economy so-called the Bitcoin economy in which miners contribute energy to process transactions.
Before we dive into the topics, we do not need to know who Satoshi Nakamoto was.
Satoshi Nakamoto was likely an individual or group of people who use pseudonymous names and actively engaged on the internet until 2014.
During his active years from 2009 to 2011, he gave some predictions on how Bitcoin might likely play out.
After 12 years, people are still using Bitcoin and many questions have re-emerged.
Bitcoin mining energy concerns
In 2010, people were already concerned about Bitcoin mining.
Mining Bitcoin was making a choice to purchase Bitcoin with electricity or computational resources.
Satoshi’s answer was referring to the Gold mining process that Gold mining is a waste but the waste is far less than the utility of having Gold available to use.
So utility is outweighed by generating energy waste.
He also furthered answered as resembled the computer heating that if you might need computer heat your home to further utilize energy without waste.
He hinted that energy might be used in a way that is efficient and there is always a source of energy to utilize that further mining Bitcoin.
He stopped the discussion in 2010 but the discussion continues.
There may not be an ultimate solution to the mining energy waste dispute but when technology progresses, new clean technologies may replace the old ones.
The only issue is how to make new and clean energy cheaper for use and sustainable.
Bitcoin’s scalability
To be able to function as a regular currency, we need to scale up the Bitcoin network. Compared to PayPal transacting 34 million per day in 2019, Bitcoin needs to speed up.
Satoshi introduced Simplified Payment Verification or (SPV), a technique only to verify the header of the transaction or the key metrics to verify the transaction without transmitting all blockchain information from one side to the other.
Nowadays, Bitcoin's daily transactions are roughly 250K which is still less than PayPal did back in 2019.
Bitcoin layer 2 solution Lightning Network was introduced in 2015 and is likely to speed up the transaction speed to resolve scalability issues.
How is Bitcoin likely to die
Satoshi briefly touched on the topic of how likely the scenario of Bitcoin’s death would be. Because the central core design of Bitcoin relies on the Hash function, the case when Bitcoin does not work is when the Hash function does not work or the Hash function gets broken.
Satoshi said it is possible to break Hash in the future. However, software by the time may also progress to have a new hash, and possibly the entire Bitcoin network could save the new hash of all the old blocks so that no way the technology will break into the hash.
So he believed that technology would progress parallel to Bitcoin so that there will be a solution in the future to prevent Bitcoin death.
In conclusion
After Satoshi disappeared, Bitcoin did continue improving as he had expected. Technology did continue improving but Bitcoin is still running. His vision continues attracting more people to follow and admire.
Photo by Sigmund on UnsplashRelated articles:
Stablecoin is Not So Stable
CBDC: Stablecoin 2.0 or Stablecoin Killer
Chinese CBDC: the Ultimate Financial Weapon or Just another Copycat
DeFi Swap: Great Returns come with Great Cost
CBDC vs Cryptocurrency: the War of Privacy
Game of Three Kingdoms: CBDC vs. Cryptocurrency vs. TechCoin
Gold vs. Bitcoin: Digital Twin or Enemy
Volatility of Bitcoin: Threat or Opportunity
Lesson Learn from Robinhood IPO: Era of Crypto Exchange Comes to an End or a New Beginning?
Hypothetically, What if the Fed Fails to Control Inflation, Will Crypto Save Us?!
Stablecoin: We Ever Need Them More Than CBDCs
SEC vs. Ripple: the Endless Game of War
SEC vs. Defi: What is the goal of the Defi?
City Coins: Are they the Era of New Coins?
Ethereum London Hardfork: How Hard does It Actually Fork?
Did the U.S. government just thumbs up on Bitcoin and down on Ethereum after the London Hardfork?
The End of Era for Crypto Exchange Platform?!
NFT: Digital Solution or Delusion?
NFT: The Future of Gamers' Assets
Is Bitcoin Untraceable Anymore?! It Depends!
Why Crypto Got So Political Suddenly: The Beginning Tale of Government Crypto Surveillance Program
Where are We Position Crypto at : the Problem with Money and Wealth
Crypto Hacking: How Did it Really Happen?
Bitcoin Mining Recover?! The Chinese vs. The U.S Strategy of Blockchain
The Legendary of Shitcoin: Meme to the ?? or Unique of ?? or Simply just ??
Crypto Economy: the Untold Speculative Financial System We will Live?
Red Alert: Lesson Learns from the Nearly Cashless Nation
Jack Dorsey’s Ambitious: Twitter wants to Become a Place of Freedom of Speech
What Categories Does Bitcoin Belong to or Does it Really Matter?
Quantum Financial System: The System Lost Itself in Quantum World
Doge 2.0: Who Let The Dog Out?!
Legendary Hacker: the White Hat into the Rescue
Crypto Hot Hub: The Best Place to become Crypto Incubator
EIP-1559: The Future of Ethereum Economy
Robot Sucks: How Lousy Jobs AMMs Did to Ruin the DeFi
The Future of Cardano: as Clear or as Uncleared?
We Are Short for the Dollars: The Dollar's Liquidity Issue
Currency Comparison: Bitcoin vs Dollar
Patent the Blockchain: the Nonsense Action Shows a Worry from Big Tech Companies
Forget about Trade War: New Era of the International Trade
Ethereum Got Update Bug: A Blockchain Synchronization Problem
-------------------------------------------------------------------------------------Disclosure: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose cryptocurrencies are mentioned in this article. This information is only for educational