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Bitcoin Is 14 Years Old

On January 3, 2023 the premier cryptocurrency Bitcoin (BTC) turned 14 years old. It has been declared dead, a Ponzi scheme and threat to national security by the media. Although its intention was to provide a new technology in finance, it has not been accepted by the mainstream financial industry and most governments because it does not conform to the norms.

Bitcoin is not a part of the highly regulated and centralized financial market because it follows an unconventional model. It is not issued by any central government, but by a network of decentralized nodes that participate in an incentivized system. BTC is produced by miners, the nodes who participate in producing blocks on the Bitcoin blockchain to validate transactions and secure the network.

Perhaps that has been the strength of the digital asset. You cannot easily classify it because it has properties of both a hard asset (e.g. gold) and a currency (e.g. USD). This makes it a totally new asset class which has potential as a store of value or digital medium of exchange. You can bring BTC across borders and truly take custody of it without the need for a trusted third-party (e.g. banks).

Despite the allegations made against Bitcoin, from energy wasting to money laundering, there are counterpoints that can be made against those arguments. This is because Bitcoin can adapt to change, like a malleable piece of clay. You can form it into something that has purpose, which is what gives it value.

Since it was first introduced to the world in January 3, 2009 (by the mysterious Satoshi Nakamoto), it has evolved and disrupted the modern finance world.

Here are some fun facts:

  • Reached all time high of $68,789.63 on November 10, 2021 (per Coinmarketcap)
  • Accepted as legal tender in the nation of El Salvador on September 7, 2021
  • Has been declared “dead” by the media about 400+ times (As of January 5, 2023) since its inception
  • Can now be used for micro-transaction payments using the Lightning Network
  • Between 2012 and 2021, the price of Bitcoin has increased by over 601,970% (data from Coinmarketcap based on closing price for January 2012 and January 2021)
  • There are now 38,000+ Bitcoin ATMs around the world (per Coin ATM Radar)
  • There are an estimated 106 Million people who hold Bitcoin, based on 2021 estimates

It has not been spared from the economic uncertainties that followed the COVID pandemic, supply chain issues, gas price increase and macro-economic problems around the world. Prices have crashed, due to FUD (fear, uncertainty and doubt). More rational holders are thinking of the future of the digital asset, and not short term price action.

Now that Bitcoin is a more mature asset, it can be taken seriously. This is not to say it is the ultimate hedge against financial turmoil or solution to inflation. It does have the potential to address economic problems, but having a level head helps keep expectations more realistic. Most people who hold BTC know its value and hopefully over time, many more people will realize that it is about having control of your wealth and financial freedom rather than mere price speculation.

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Published by VNakamoto

Blockchain and cryptocurrency

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