In recent years, the rise of cryptocurrencies has sparked intense debates and discussions among investors, economists, and tech enthusiasts alike. At the forefront of this financial revolution is Bitcoin, the pioneering digital currency that introduced the world to blockchain technology.
As Bitcoin continues to make headlines, we find ourselves asking the critical question:
Does Bitcoin really matter?
What is Bitcoin and Why was it Created?
Bitcoin emerged in 2009, created by the mysterious pseudonymous figure known as Satoshi Nakamoto. No one know who Satoshi Nakamoto is, or even if Satoshi Nakamoto is only one person. This figure simple created the code, sent a copy of the whitepaper ("Bitcoin: A Peer-to-Peer Electronic Cash System" which explained how the bitcoin network will work), then started the network up by mining the first block and continue to mine blocks for only one year.
It was the first decentralized digital currency, designed to enable peer-to-peer transactions without the need for intermediaries like banks. Utilizing blockchain technology, Bitcoin offered an innovative way to record and verify transactions securely.
This printing of more USD resulted in the devaluing of the US Dollar, meaning the price of goods and services will increase as there is more money in circulation, therefore, there is more money available to be used to by those goods and services. The bailout caused the biggest pain to average citizens as their dollars, their savings, were instantly reduced as $100,000 in savings would now be worth $97,000.
Secondly, Bitcoin's creation acted like a spark to create a whole industry revolution to decentralize the entire financial system, using the blockchain, to ensure citizens are treated equally and fairly. Citizens don't have to take any government's, or financial institution's decisions as they no longer have to fear one of their most important rights being taken away, finical freedom.
Thirdly. Anyone, anywhere has the ability to participate on the global financial stage without any limitations. This however has a pitfall, that being anyone, anywhere has the ability to participate on the global financial stage without any limitations. Meaning, terrorists, criminals, anyone, can do any type of transaction (buying guns, drugs, committing fraud etc.) from anywhere without any central authority to stop them.
By creating Bitcoin, Satoshi was aiming to create a USD replacement that never has any supply change, as well as bein fully transparent and without any middle-men and prevent citizens from having to experience another 2008 Crisis due to the government's, or business's failures.
The Significance of Bitcoin's Technology and Creation.
The most significant contribution of Bitcoin is undoubtedly its introduction of blockchain technology. Blockchain is a distributed ledger that ensures transparency, immutability, and security of transactions. It allows multiple parties to maintain a synchronized record of transactions without the need for a central authority. This technology has the potential to disrupt various industries, offering solutions beyond cryptocurrencies.
Thirdly. Anyone, anywhere has the ability to participate on the global financial stage without any limitations. This however has a pitfall, that being anyone, anywhere has the ability to participate on the global financial stage without any limitations. Meaning, terrorists, criminals, anyone, can do any type of transaction (buying guns, drugs, committing fraud etc.) from anywhere without any central authority to stop them.
It must be noted however, when making this point, Crypto Currencies facilitate $2 billion in crime related activity while traditional finance facilitates around $2 trillion in crime related activity(100x more than crypto).
Are these Significances Relevant in Trinidad and Tobago?
Yes.
Blockchain technology can heavily reduce corruption as a transaction's full history and the trail any crypto has left behind is fully accessible to anyone. This would make it much harder for corruption of any kind to be hidden.
Citizens can do whatever they want with their money. No longer will you be limited to the amount of money you can send abroad, or receive. Be unable to open a bank account because your documents aren't good enough for the banks etc... With bitcoin, you have access to just as many financial services such as loans and high interest saving accounts through bitcoin based services.
So does Bitcoin Matter?
Yes, we believe Bitcoin does matter.
Do you?