The Bitcoin whitepaper, A Peer-to-Peer Electronic Cash System, published by the enigmatic and pseudonymous Satoshi Nakamoto, celebrated its seventeenth anniversary yesterday.
Unveiled on October 31, 2008, during the global financial crisis, this nine-page document set the groundwork for what would evolve into the world’s first cryptocurrency.
The whitepaper presented a vision for a decentralized, peer-to-peer financial system founded on cryptographic proof instead of trust in third-party intermediaries. Its aim was to resolve the double-spending problem and facilitate online transactions without depending on banks or other trusted entities. “We have proposed a system for electronic transactions without relying on trust,” Satoshi remarked.
Seventeen years later, Bitcoin’s impact has surpassed the cypherpunk forums where it originated. This anniversary arrives as U.S. spot bitcoin ETFs, in their brief existence, have witnessed extraordinary success, boasting over $62 billion in total net inflow and more than $150 billion in total net assets, based on RialCenter data.
Yet, Bitcoin’s mainstream acceptance transcends Wall Street. It has permeated the highest levels of government, including the White House under the current U.S. administration.
Some of Bitcoin’s most vocal critics have transformed into its staunchest advocates. In 2021, former President Donald Trump labeled Bitcoin a “scam against the dollar.” However, by the 2024 presidential election, he was encouraging supporters to “never sell your bitcoin” and signed an executive order to establish a bitcoin strategic reserve.
Larry Fink, CEO of BlackRock, the world’s largest asset manager, previously referred to Bitcoin as an “index of money laundering.” Today, he promotes it as one of his firm’s most successful ETF products, viewing it as a hedge against instability in sovereign debt. Similarly, Michael Saylor, the vocal CEO of Strategy, has become one of Bitcoin’s most ardent supporters, continually acquiring BTC through stock and debt offerings. Initially skeptical, Saylor had once proclaimed, “Bitcoin’s days are numbered. It seems like just a matter of time before it suffers the same fate as online gambling.”
The last major skeptic among renowned financial figures is JPMorgan CEO Jamie Dimon, who continues to express doubts regarding Bitcoin’s value and sustainability. Nonetheless, his bank has enthusiastically entered the sector, recently permitting clients to use bitcoin as collateral.
The financialization of bitcoin through ETFs and corporate treasury adoption has drawn comparisons to the mortgage securitization boom of the 1970s, a period that saw asset prices surge to unprecedented heights.
Yet, this evolution has not garnered universal praise. Many early Bitcoin enthusiasts argue that its very essence, a form of money independent of state control, has been compromised by institutional uptake.
For the cypherpunk movement that originated Bitcoin, the system’s acceptance by Wall Street and Washington feels paradoxical: a rebellion absorbed by the establishment it aimed to disrupt.
What is Bitcoin and can it endure?
Annually, the average transaction fee per bitcoin block has sunk to its lowest level since 2010, raising concerns about the network’s long-term viability. Low fees, although appealing for users, diminish incentives for miners who secure the network, particularly as block rewards halve every four years.
Once conceived as a peer-to-peer electronic cash system, Bitcoin has increasingly been overshadowed by the “store of value” narrative. “Never sell your bitcoin” is a common mantra from Michael Saylor to the Trump family and various others.
Controversy continues within the developer community, especially between Bitcoin Core and Bitcoin Knots over whether the network should permit non-monetary data like Ordinals or impose stricter rules to prevent it. Some view such restrictions as essential for preserving the network’s integrity, while others see them as a form of censorship that alters Bitcoin’s open and permissionless nature.
In addition to these internal disputes, the looming threat of quantum computing presents an unresolved risk. The potential for future quantum machines to compromise existing cryptographic standards could jeopardize Bitcoin’s security, with no definitive solutions implemented yet.
“It’s undeniable that Bitcoin has arrived, accepted by Wall Street, and its sustained period above $100,000 confirms that,” stated Bitcoin OG Nicholas Gregory recently. “Its shift from peer-to-peer cash to a store of value is apparent,” he added. “It remains to be seen where it goes long-term. I believe the narrative of it as a medium of exchange is crucial to its lasting place, along with solutions to the quantum threat.”
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