Satoshi Nakamoto, the anonymous creator of Bitcoin (BTC), once explained why he believes the digital currency is less likely to fail compared to previous similar products.
Satoshi Nakamoto: That’s why the odds of Bitcoin failing are so low!
Exactly 14 years ago today, his statement, published on the Nakamoto Institute website, outlines the unique features he thinks will set Bitcoin apart from previous attempts to create digital currencies.
Satoshi acknowledged that many rejected “e-currency as a lost cause” due to the failures of centralized systems in the 1990s, arguing that they were centrally controlled, which doomed them to failure. In contrast, he believed that Bitcoin’s decentralized, trustless system made it more resistant to failure.
“A lot of people automatically dismiss e-currency as a lost cause because of all the companies that have gone bankrupt since the 1990s,” Satoshi said. I hope it is clear that it is only the centrally controlled nature of these systems that has condemned them. I think this is the first time we are testing a decentralized, trustless system,” he wrote.
Nakamoto’s Bitcoin plan
In particular, Nakamoto’s quote gained prominence in crypto circles as it highlighted the anonymous creator’s plan to build a system that could act as an alternative to traditional finance.
As reported by Finbold, Nakamoto was also involved in Bitcoin transactions. Notably, 14 years ago, the first Bitcoin transaction was initiated by Nakamoto, who was the sender.
The transaction on January 12, 2009 saw Nakamoto transfer 10 BTC to computer scientist Hal Finney, who was the first buyer on the Bitcoin blockchain.
In line with Satoshi’s projection, Bitcoin became a global phenomenon at one point, controlling a market cap of around $1 trillion. Indeed, Bitcoin’s properties have made it an attractive alternative to traditional currencies and payment systems while taking use cases like an investment product.
However, Bitcoin’s journey has been hampered by several hurdles, including regulatory uncertainty and high price volatility. However, the asset has still managed to stand out among the top performing assets over the past decade.