Bitcoin, as one of the first digital currencies created, has rapidly evolved and become an indestructible global phenomenon. Although many doubted its sustainability in the early days, Bitcoin has continued to endure and even further solidify its position as an asset that cannot be ignored in the financial world.
The History of Satoshi Nakamoto: The Beginning of Bitcoin
Bitcoin was created by someone or a group known as Satoshi Nakamoto, who came up with a proposal in 2008 titled "Bitcoin: A Peer-to-Peer Electronic Cash System." In January 2009, Satoshi mined the first block, known as the "Genesis Block," and mined the first Bitcoin known as the "block reward." Since then, Bitcoin has become known as a decentralized currency alternative, not relying on banks or governments, and generated through a process known as "mining."
However, the true identity of Satoshi Nakamoto remains a mystery. Some people claim to be Satoshi, but to this day, Satoshi has never been publicly revealed. This adds a mysterious and intriguing element to Bitcoin, where its existence becomes a symbol of financial freedom unbound by central entities.
Satoshi's Last Message to the Community
In the last block mined by Satoshi, there is a hidden message encoded in the block text. The message reads, "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks." This message is a direct reference to the headline of The Times newspaper at the time, which criticized the government's bailout policy for major banks caught in the global financial crisis. This message clearly reflects Satoshi's dissatisfaction with the traditional financial system and is one of the main reasons Bitcoin was created — as a solution to the global financial system's dependence on central authorities.
Limited Supply: Bitcoin vs. Conventional Investments
One of the most important features of Bitcoin is its limited supply. There will only ever be 21 million Bitcoins that can be mined throughout history. This number cannot be changed, unlike the monetary policies of fiat currencies that can be printed without limit by central banks.
In relation to this, Bitcoin offers something unique that conventional currencies do not have: supply asymmetry. This makes it increasingly scarce over time. In the world of conventional investments, such as stocks, bonds, or real estate, supply can be influenced by economic policies, such as money printing and interest rate policies. On the other hand, Bitcoin with its limited supply becomes more attractive to investors looking for ways to protect their wealth from inflation.
Bitcoin vs. Fiat Currency: Facing Economic Uncertainty
Fiat currencies, such as the US dollar or euro, are tied to the economic policies of the issuing country. Loose monetary policies, such as unlimited money printing, can lead to inflation and a decrease in the public's purchasing power. In this context, Bitcoin serves as a safer "store of value," especially amidst global economic uncertainty.
For example, during times of economic crisis or hyperinflation, Bitcoin is unaffected by harmful government policies. Conversely, Bitcoin is often seen as a hedge against inflation and economic instability, leading to increased demand from long-term investors.
Value $BTC that is Maintained: Facing $BTC that is Lost and Confiscated
One reason Bitcoin has a stable value is the fact that many Bitcoins have been lost forever. Many users have lost access to their wallets or cannot access their private keys, resulting in locked and unusable Bitcoins. It is estimated that there are over 3 million Bitcoins that are lost or permanently locked.
In addition, a significant amount of Bitcoin has also been confiscated by governments from individuals involved in
illegal activities. For example, the US government confiscated Bitcoin from various hacking and money laundering cases. However, the limited supply of Bitcoin makes every lost Bitcoin increasingly scarce, which in turn supports the price of Bitcoin.
Major Investors Involved in $BTC
As Bitcoin grows, various major investors are also involved in this ecosystem. Several large institutions, such as MicroStrategy, Tesla, and Grayscale, have bought Bitcoin in large quantities, making it part of their investment strategies. Even large companies like PayPal and Square now allow their users to buy and store Bitcoin on their platforms.
In addition, Hedge Funds and Family Offices have also begun to look at Bitcoin as a legitimate and profitable asset, not just as speculation, but also as part of their portfolio diversification.
