The story of Bitcoin resembles more of a movie than a real story.
Started in 2009 by a guy named Satoshi Nakamoto. None knows who he/she is. Some believe he/she may be a group of people.
Yet on April 23rd, 2011, Satoshi Nakamoto left anyone from the Bitcoin community bewildered with this message:
“I’ve moved on to other things. It’s in good hands with Gavin and everyone.”
None heard from him anymore.
The story of the first years of Bitcoin is even crazier. In fact, initially, Bitcoin growth was fueled by a website, called Silk Road, in the dark web. That site turned out to be an illegal market for drugs. For a short period, Bitcoin name ended up associated with Silk Road.
In short, this story is worthy of the next Hollywood hit!
Besides the buzz, speculation or bubble behind Bitcoin - many fear Bitcoin is like the Tulip mania, a financial bubble that exploded during 1636 – 1637 in the Netherlands when the price of some Tulip bulbs would be higher than a home! - that is one signal: the Blockchain.
Whether or not Bitcoin itself will be a huge success, a significant failure, or just one of the many cryptocurrencies; there is one thing we cannot deny. The Blockchain can revolutionize many fields.
Many argue that Bitcoin success is mainly based on trust and faith in the system. Yet this argument is flawed I believe
As for the second point that is true for almost anything that gets exchanged on the market. Of course, when it comes to official currencies central banks intervene to "manipulate" the value of that money (for instance with an injection of liquidity). However, one might argue how effective are those interventions.
Also, everything in finance is a matter of trust. When you hold a dollar in your hands, you are trusting the American system and the Federal Reserve that that piece of paper is worth something. If that trust is gone so the dollar would be gone too!
The main difference (I believe) is that part of the Bitcoin value is based on the trust and the ability of Blockchain to be a reliable alternative system to traditional central banks. Therefore, the faith is moved from an elite of people (our central bankers) to a set of math equations (the hash functions behind the Bitcoin).
Would humans be able to trust that? I think that is one of the central questions.
Bitcoin is an Asset - like Gold. Litecoin or Monero is a Currency. People will go into BTC for diversifying as an Asset Class. But what we experience right now is mass adoption.
Remember that we are only at the early Adopters Stage. See my prediction on Bitcoin here:
https://steemit.com/bitcoin/@sircryptonite/cryptomarkets-future-price-of-bitcoin-in-relative-to-market-capitalisation
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What happens if net neutrality gets repealed and internet is scaled back making some people able to get monies in/out of exchanges while others seem to not have access because of slow connection. Net neutrality would effectively set a class structure to the inter webs
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It's a threat, as I also explain here: https://steemit.com/blockchain/@gennarocuofano/blockchain-distributed-social-systems-and-the-end-of-modern-states, Bitcoin won't swipe inequality all of a sudden. That would be too utopistic to believe. However, I wonder whether or not it could work well as an alternative system to the traditional one.
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Right bitcoin wouldn't opt for this however governments or groups that now control majority of capital could leverage against alternative system to gain advantage similar to every other system set today.
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