When Satoshi Nakamoto authored the Bitcoin whitepaper in 2008, his objective was a “peer-to-peer version of electronic cash” that would serve as a means of value exchange between users without the need for a third-party.
Fast forward to 2019, Bitcoin’s current adoption numbers have undoubtedly matched or even exceeded Satoshi’s objective “peer-to-peer” cash with new converts still joining the ranks daily.
However, When the legendary pseudonymous group laid the groundwork for Bitcoin it was almost certain that new projects would spring up to improve its capabilities via new models of cryptocurrencies.
For the sake of comparison, the average time for the confirmation of a Bitcoin transaction at the time of writing was 10 minutes while the blockchain has conducted 380,736 transactions in the last 24 hours.
Maximalists may argue that efforts such as the Bitcoin Lightning Network and SegWit could finally scale the cryptocurrency but the fact remains that it will take a little longer for these solutions to scale themselves first.
The sad reality is that even early adopters of cryptocurrency now prefer transacting with other low-cost and fast cryptocurrencies and would only use Bitcoin if the last option is going through a traditional payments system.
Did Satoshi Nakamoto forsee these challenges for Bitcoin? It is hard to say. However, his genius idea of applying advanced economics to Bitcoin means that the cryptocurrency would still lead the pack at least into the foreseeable able.
Bitcoin Targets Digital Gold Status
For the basics, there will only be 21 Million Bitcoins in the history of the human race with Satoshi Nakamoto carefully using the process of mining and halving to control any possible inflation in the circulation of the cryptocurrency.
The removal of the possibility of any government or entity issuing Bitcoin ensures fair distribution and more importantly allows the cryptocurrency to serve as a store of value, a purpose that precious metal, gold has served for a long time.
Given that we’re in a digital-driven era, it would be safe to say that Bitcoin has an edge over Gold since holders can easily exchange it anytime (within eight minutes at least) and without any border restrictions.
In fact, the “Drop Gold” ad campaign launched by Grayscale Investments last month and the increased institutional interest in the asset class highlight what function Bitcoin will fulfill in the near future.
Yes. It may not be the role of ‘peer-to-peer cash’ but the 21st Century’s Digital Gold!