Newly Revealed Emails of Satoshi Nakamoto Show Concerns About Fiat Currency Debasement
Newly released emails from Satoshi Nakamoto, the creator of Bitcoin (BTC), reveal that he has long been concerned about the debasement of fiat currencies by central banks. The emails were shared by early Bitcoin contributor Martti Malmi, who decided to release them after standing as a witness in a trial involving the self-proclaimed BTC creator Craig Wright. In one of the emails, Satoshi highlights the biggest flaw of government-issued currencies like the US dollar โ the need for trust in central banks and commercial banks.
Trust Issues with Fiat Currencies
Satoshi Nakamoto argues that conventional currency relies on trust, which is often breached. He points out that central banks must be trusted not to debase the currency, but history shows that this trust has been violated multiple times. Additionally, commercial banks are trusted to hold and transfer money securely, but they often lend out money in credit bubbles with minimal reserves. Moreover, individuals must trust banks with their privacy and protection against identity theft. These issues of trust are inherent in fiat currencies.
Purchasing Power Erosion
Data from the US Bureau of Labor Statistics reveals that the purchasing power of the US dollar has decreased by approximately 20% since 2010 when accounting for inflation. This erosion of purchasing power further highlights the concerns raised by Satoshi Nakamoto regarding fiat currencies.
Perception and Value
Satoshi Nakamoto emphasizes that throughout history, people have used assets with a finite supply as money. He argues that peopleโs perceptions drive the value of a currency more than its use case. For example, gold holds value not just because it is pretty and malleable, but because others perceive it to be valuable. Until the creation of Bitcoin, no scarce commodity that could be traded over a communications channel without a trusted third party existed.
Bitcoinโs Growth and Value
Since the first Bitcoin to fiat transaction in 2009, Bitcoin has seen significant growth in value. At the time of writing, Bitcoin is trading at $51,636, representing a staggering increase of approximately 1,127,931%. This growth is a testament to the increasing demand for a decentralized form of money that is not subject to the trust issues associated with fiat currencies.
Hot Take: Satoshiโs Concerns Validated by Bitcoinโs Success
The concerns expressed by Satoshi Nakamoto regarding fiat currencies have been validated by the success of Bitcoin. As governments continue to print money and erode its purchasing power, individuals are turning to cryptocurrencies like Bitcoin as an alternative store of value. The finite supply and decentralized nature of Bitcoin address the trust issues inherent in fiat currencies. With each passing year and milestone in Bitcoinโs growth, Satoshiโs vision becomes more apparent โ a currency that can be traded over the Internet without relying on trusted third parties.
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