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The Truth Behind the Release of Bitcoin White Paper

Bitcoin whitepaper release

December 1, 2020 | 

JOHN K MWANIKI |  0 Comments| 

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Bitcoin turned 12 years in existence the other day. These few years have been so intense for the digital currency. What started as an idea to revolutionize the economy is taking shape. It has passed all the imaginable targets it had.

All through, the significance of the Bitcoin whitepaper is not lost on the community. The document remains one of the most important in the crypto economy. It is what marked the start of the now vibrant crypto market.  

The whitepaper, though, doesn't embody its importance. It takes a simple approach to the market. It comes with a simple heading, Bitcoin: A peer-to-peer electronic cash system. This doesn't look like a project that would change how everyone perceives money. 

The coin has since shown there can be an alternative to the fiat currencies. It has been impactful to work, study, and life. This calls for scrutiny into the whitepaper. There is a need to check into the significance of its release. 

Was the White Paper Right?

The growing importance of digital currency brings more focus to the Bitcoin whitepaper. Traders are looking at whether the coin dealt with every coming thing. Whether the creators had anticipated such a huge market is up for debate.

This calls for a deeper look into the document's content.

The first consideration is that Bitcoin was the first crypto whitepaper. It has since formed a benchmark for most other coins. They tend only to change a few aspects while drawing from it. Still, others like Litecoin didn't even have to write their own. They instead use Bitcoin.  

Bitcoin's whitepaper provides for an abstract, which sets the tone for the document. It then goes to a detailed introduction. This is where it shows the users the need for an alternative financial system. It shows the failures of the centralized money system and how it intends to correct it. It lets the users want the electronic payment system with cryptographic proof. It doesn't rely on trust.

The document also covers transactions. It shows the users how the peer to peer transactions take place. It also talks of the digital signatures that later turned out to be the public ledgers. It clears the user risk on security issues for the decentralized system.

The document goes further on the system and network. It looks into the nodes and verifying transactions. This is where it shows the users how the system is hack-free. Every online venture is susceptible to hacking. Bitcoin, though, has never been hacked.

The document does not fall short at any point. It talks about the incentives for the miners. Information on reclaiming disk space and value combinations is also available. 

Ten years later, the coin remains the best reference point for the crypto market. It is what the market relies on for expansion strategies. It will keep being relevant as the coin matures.

Why did Satoshi Release the coin on Halloween?

Satoshi Nakamoto announced Bitcoin whitepaper for the first time on Halloween 2008. At first, it seemed like a coincidence. Yet, when looking at it in detail, it was a whole plan. The holiday is such a significant time for the coin. 

Halloween is one of the spookiest holidays. It allows one the opportunity to disguise into any character they want. The time works well with Satoshi Nakamoto, whose real identity is still under wraps. The world is yet to know whether it is a group, male or female.

Like Halloween, Bitcoin is full of symbolism. The coin has used various instances to reinstate its commitment to financial liberation. A quote from an English newspaper, The Times, appears on its Coinbase block. "The Times 03/Jan/2009 Chancellor on the brink of second bailouts for banks."

The quote would pass for any other commentary on a national newspaper. For Bitcoin, though, it is the main focus. It shows the struggling traditional markets. The cryptocurrency market thus is to save it. The quote also shows the date Bitcoin started as 3rd January 2009. 

The timing of Bitcoin going live is also crucial. It's months after Satoshi announces Bitcoin. Many people believe the difference was to allow people to forget about the coin. They would get preoccupied with other things after the first announcement. 

The launch date is also over the festivities. During this period, most people are all about the Christmas holidays and New Year's Eve. Nobody would care enough for a new coin at the start of the year. The coin would then get into the market without drawing much attention. 

Satoshi was right to avoid attention. Media scrutiny would bring it to a crossroads with the existing laws before establishing itself. It would not have survived bans, and other regulations like it does at the moment.

What is the Future of Bitcoin with the white paper?

Bitcoin whitepaper has been spot-on ever since the start. It has got everything right and is still key. The coin is, however, facing an evolution. It is fast becoming mainstream with the public and institutional investors' adoption. This is what Satoshi Nakamoto did not have in mind.

The Bitcoin whitepaper struggles with anonymity. It had provided for only public addresses appearing on the ledgers. The cryptocurrency concerns on security are, however, making the coin less private. It is coming under more scrutiny from the regulatory authorities.

The other concern is Bitcoin's role in avoiding inflation. The whitepaper shows that the coin would contain inflation through the limited supply. Still, Bitcoin needs variants for inflation management. It interacts with other cryptocurrencies. 

It will take several years to determine if the coin got it right as it matures into the "digital gold."

The other concern is on the switch to transaction fees. The network depends on miners to verify transactions. The mining rewards halves every four years. It means they will get to zero. The miners yet would still need motivation leading to transaction costs. 

The whitepaper also falls short on providing trading with other coins. Ethereum, Ripple, and other virtual currencies are already impacting Bitcoin. It would be interesting to see how they relate to the crypto market.

Bottom Line

Bitcoin is all about disguise. Everything about the coin is significant, while it doesn't seem so. The Bitcoin release date also makes more sense as time passes.

Satoshi Nakamoto released the Bitcoin whitepaper on Halloween. It symbolizes the nature of Bitcoin. 

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