People who entered the Bitcoin market after 2017 have a different approach to trading and ideals compared to those before. They are mainly focused on the rising prices and the excitement of the increased value of their investment portfolios. The revolutionary ideas about separating currency from the state, market-based exchange, and changing the prospects of freedom itself by changing how currency operates are no longer a concern. Bitcoin enthusiasts now have different goals.
During this period, digital assets like Bitcoin were able to protect many users and businesses from the greed-driven inflation caused by the centralized control of currency by central banks. However, the original idea behind Bitcoin, represented by the symbol BTC, has been deviated from its original intention.
In 1974, Hayek articulated this ideal. As an economist, Hayek dedicated most of his career to advocating for sound monetary policy. At every crucial turning point, he faced the same question: governments and their institutions do not want sound money. They want to manipulate the monetary system for the benefit of the elites rather than the public. Eventually, he concluded that the only true answer is to completely separate money from power.
In 2009, an anonymous developer or group released a whitepaper that outlined a peer-to-peer digital cash system written in the language of computer scientists rather than economists. For most economists at the time, the functionality of Bitcoin was opaque and untrustworthy. However, the system itself was already operational by 2010. In summary, Bitcoin adopted a distributed ledger, double-key encryption technology, and a fixed quantity protocol to introduce a new form of currency that combined the currency itself with the settlement system.
Bitcoin achieved Hayek’s dream. The key to making this possible was the distributed ledger itself, which relied on the internet to globalize operating nodes and introduced a new form of accountability. The integration of payment methods and settlement mechanisms on such a large scale was previously impossible. However, the emergence of distributed ledger technology led to its increasing valuation in the market.
Unfortunately, Bitcoin’s adoption rate is lower now than it was five years ago. Bitcoin has taken a different path that prioritizes price appreciation for early adopters. The technology has been compromised by minor changes that were not well understood by most people.
This book, “Hijacking Bitcoin” by Roger Ver, tells the tragic story of how a liberating currency technology was subverted for other purposes. It highlights missed opportunities and the betrayal that occurred. However, the book also offers hope that Bitcoin can still be liberated and fulfill its potential to change the world.
This story is familiar in many fields, where institutions born out of ideals are later changed by various forces, channels, and malicious intent. We have seen this happen in digital technology, the internet, medicine, public health, science, liberalism, and many other areas. The Bitcoin story follows the same trajectory, reminding us that no institution or idea on this side of heaven is immune to compromise and corruption.
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