February 4, 2023

Organic Growth: Why Bitcoin (Still) Matters After 10 Years

The ten-year anniversary of whitepaper Satoshi Nakamoto, to put it mildly, was grand for most people from my circle of friends and almost imperceptiblyfor 99% of the uninitiated people all over the world. But even for those who do not follow cryptocurrencies, this date marked a truly significant milestone in the short history of Bitcoin: only that he lived these ten years is already grandiose, but even more impressive is that its foundation, even in conditions the bear market has retained strength and is only strengthening its position.

Since its inception, Bitcoin has grown dramatically.both in terms of distribution and price. At the time of publication of this article, the market capitalization was approximately $ 110 billion, and the price for one bitcoin was about $ 6,450. More than 32 million wallets were created. Not bad, considering that it all started with an anonymous founder, open source, the first two users, zero market price and lack of venture financing and marketing. Of course, one can argue that these figures are relative, but that is not the point.

Bitcoin is an alternative currency and paymentsystem on the internet. It was created without trust, but at the same time, users have to trust its mechanism of work, and this is not so simple, given the fact that people need to invest hard-earned dollars in something intangible. Bitcoin is still far from widespread, but in ten years, cryptocurrency has shown that its value is gaining momentum. Here are some evidence:

Technical aspect

Hashrate is an important indicator of strength and health.Bitcoin It is associated with the number of miners who compete for transaction confirmation and protect the Bitcoin blockchain (a cryptographically secure and immutable database in which all transactions are recorded). But here is what people without technical skills need to know: the number of miners has been steadily increasing since transactions with the first bitcoins. Over the past year, there has been incredible growth even though the price has been falling. Bitcoin is a decentralized currency with a maximum of 21 million coins. Real world resources (electricity and computing power) are also spent on creating bitcoins, so an increase in the number of miners shows that they are really investing money in Bitcoin, and not just mining.

Financial aspect

Institutional interest. This year, more than ever, many stories appeared about how Wall Street professionals are leaving for a new position in the cryptocurrency field, venture capital firms are investing huge amounts of money in cryptocurrency projects, and large financial institutions are preparing for work in the crypto space. Large investment banks have already announced or began to implement plans for investing in cryptocurrencies, open up open areas for trading, offer custody solutions and a number of new cryptocurrency financial products and services. Fidelity, BlackRock, Goldman Sachs, Intercontinental Exchange (ICE) and CBOE are already in the industry. Yale University Endowment Fund has also taken up cryptocurrencies. These institutions prudently began to fulfill their so-called fiduciary duty - to offer leading investors the best asset class in the last ten years.

Political aspect

Regulatory discussions. Large financial institutions prepare various services that are subject to regulation by the government. They no longer think about how to ban Bitcoin - this time has long passed. Today, the main discussions are held in the field of cryptosphere regulation. Politicians and government officials are struggling to find ways to protect individual investors and prevent money laundering, trying to figure out how to leave Bitcoin in the system and not allow it to harm banks and centralized control over the fiat money supply. The positive side, at least in America, is that many politicians and lawmakers have children who grew up in the digital age and are now studying at elite universities, where they are told about the blockchain. I have almost no doubt that their knowledge of Bitcoin and its potential to create a safer, stable and free financial future will have a positive impact on the ecosystem. In the near future, their enthusiasm will also help shape the views and opinions of their parents. In the near future, laws will be created to regulate cryptocurrencies. Whether this is good or bad is unknown, but one thing is clear - Bitcoin cannot be prohibited.

For speculators, these three aspects guaranteeprice increase in the future. But Bitcoin has many other layers and aspects besides yours. In the next article I will talk about some other equally interesting achievements of cryptocurrency over the past ten years. In the meantime, I propose to watch a fantastic interview with Murad Makhmudov, in which he clearly reveals the view on why Bitcoin is really important.