In 2008, Satoshi Nakamoto published Whitepaper Bitcoin – a manifesto of decentralized money, promising the world freedom from banks and intermediaries. Today, after 15+ years, BTC has become a global phenomenon, but much of the plan has not been realized.
We say that it was not possible to predict the creator of the first cryptocurrency and what problems the Whitepaper Bitcoin is fraught with.
Technical miscalculations
Whitepaper has almost no question of scalability: Bitcoin’s throughput is only ~ 7 transactions per second, which is catastrophically few for the global payment system. Commissions at peak moments reach tens of dollars, and transactions may confirm tens of minutes.
Satoshi also mistakenly believed that mining would remain available to everyone. The phrase “one CPU -one vote” quickly lost its meaning after the appearance of industrial ASIC -Ferm. Today, most of the computing power is concentrated in the hands of several mining pools.
Another problem is the astronomical power consumption of the network comparable to countries like the Netherlands. Satoshi did not foresee such problems.
Conceptual misconceptions
Bitcoin was conceived as “anonymous digital cash”, but in practice the BTC is transparent to the limit. All transactions are published and deanonymization is possible thanks to analytical tools.
Moreover, the network did not save from intermediaries – centralized exchanges and wallets that control the turnover replaced the banks. At the same time, unlike the classical financial system, it is impossible to return the money if you are mistaken in the address.
The economic model in question
Satoshi suggested that, as the awards disappeared, the commission would “feed” the commission. But so far they make up only a small share of income. If the commission will not be enough in the future, the security of the network will be at risk.
The goal that seems unattainable
Bitcoin has not become a mass payment tool. They do not pay everywhere in stores, and there are many reasons for this, for example, high volatility of BTC and a long time of confirmation of transactions. But the cryptocurrency turned into “digital gold” – an instrument of accumulation, investment and speculation.
Instead of the results
Whitepaper Bitcoin has become a starting point for a new era in finance. At the same time, the concept of Satoshi was naive in a number of key aspects. The network works, ideas are alive, but reality turned out to be much more complicated. Bitcoin changed the world, but he also changed – and far from the spirit of the ideas of his creator.
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Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
