Bitcoin Whitepaper: Historical Impact on Digital Finance

During the 2008 financial crisis, the United States addressed the problem by printing large amounts of money. At the time, Federal Reserve Chairman Ben Bernanke, known as "Helicopter Ben," declared his intention to distribute money liberally and acted on it. This led to increasing distrust in the financial system and brought attention to the need for a new decentralized currency. Much like how the Reformation brought about the separation of church and state, the creation of Bitcoin aimed to separate currency from state control. This was precisely why Satoshi Nakamoto released the Bitcoin whitepaper on October 31, 2008. The whitepaper introduced a P2P (peer-to-peer) system that allowed Bitcoin transactions without a central trusted authority. Thus, Bitcoin’s inception date was established. Bitcoin emerged as a reaction to the centralized financial system. At the time, skepticism towards central authorities relying on monetary power grew, leading to the advent of Bitcoin, a new decentralized currency. This is comparable to Martin Luther challenging the papacy by publishing his 95 Theses during the Reformation. Just as Luther released his theses on October 31, 1517, Satoshi Nakamoto challenged the centralized financial system by publishing the Bitcoin whitepaper on October 31, 2008. Bitcoin aims to mitigate the impact of central bank policies on ordinary people. When central banks print money, causing inflation, wage earners and pensioners—ordinary citizens—suffer significant damage. On the other hand, countries with high debt benefit proportionally more from inflation. Such economic mechanisms highlight the revolutionary aspects of Bitcoin. With a fixed supply limit (21 million BTC) and a predictable issuance rate, Bitcoin attempts to address the issue of inflation through its underlying blockchain technology. Satoshi Nakamoto chose another date linked to Martin Luther for a significant event. On January 3, 2009, Satoshi created the first block (Genesis Block) in Bitcoin's history, mining 50 Bitcoins in the process. This block, known as the Genesis Block, serves as the foundation of the Bitcoin network. This coincides with January 3, 1521, when Martin Luther was excommunicated from the Roman Catholic Church. Just as Luther announced his break from the papacy, Satoshi declared a break from the existing financial system with the Genesis Block. Satoshi disappeared suddenly after the Bitcoin community began using Bitcoin to support Julian Assange, the Australian journalist and founder of WikiLeaks. While Satoshi chose a silent battle, he dreamed of a financial revolution through Bitcoin. This is reminiscent of Martin Luther's aim to transform a theocratic state into a civil revolution through the Reformation. Bitcoin is perceived as digital gold that maximizes an individual's economic freedom and privacy, safeguarded by private keys. Currently priced at $59,000, Bitcoin continues to be regarded as an important digital asset. It exposes the limitations of central bank policies and establishes itself as a historical mechanism proposing a new economic paradigm. Over time, the value of Bitcoin will gain further recognition.