According to a hidden message on coinbase of its Genesis Block, Bitcoin was to disrupt the financial systems around the globe. On January 3, 2018, Bitcoin officially became nine years old. So, after creating a sensation for nine years, has Bitcoin succeeded in its goal?
Let’s have a look at how far Bitcoin has come in 2018.
It All Began with Satoshi Nakamoto’s Whitepaper
Who is the real founder of Bitcoin, is still an enigma. But it dates back to the famous 2008 whitepaper of Satoshi Nakamoto titled as Bitcoin: A Peer to Peer Electronic Cash System. He explained the idea of leveraging Blockchain technology for conducting transactions that too without involving any financial institutions.
The timing of the paper’s release is worth considering because it coincided with economic recession of 2008. Digital platforms were already facilitating online transactions. But, a whitepaper by Nakamoto gave the idea of using a digital currency and evaluating it on different parameters.
Apart from being a threat for financial systems Bitcoin has also provoked debate on different social, moral and religious aspects. Proponents of Islamic economic system are discussing if Bitcoin is Halal or Haram. But, the real impact that matters is how it would transform the global economic system in the years to come.
Disruption of Financial Systems
The Genesis Block of the Bitcoin carries a hidden message of “The Times 3/Jan/2009 Chancellor on the brink of second bailout for banks”.
Has Bitcoin made banks to look for a bail-out? Well, it is 2018, and nothing much has happened now. But, experts are predicting the disruption in financial systems that these digital currencies can provide.
At least, this is what the stats about the value and market capitalization of cryptocurrencies indicate.
Price of first Bitcoin was $0.008. For a first transaction, it took 10,000 BTC to buy one pizza. In the next five days, Bitcoin’s price grew by 900%. The cryptocurrency got mainstream attention in 2013 when its price reached $600-$1000 at the end of the year. Now, it has reached a value of $14590. Its current market capitalization is above $250 billion. The overall market capitalization of cryptocurrencies has also crossed the 700 billion mark.
Future of Bitcoin
The high value of Bitcoin has made it out of the reach of ordinary people. But there are many alternate cryptocurrencies that people can consider for trade purpose. Whether the Bitcoin would pose a real threat to financial systems or not, depends upon many other factors. For example, mainstream acceptance of BTC as a currency, and various economic regulations by the government can be potential actors to determine Bitcoin’s future. Well, recognition doesn’t seem to be much a problem. Many projects, like Dubai Real Estate, are receiving Bitcoin as payment.