Why Satoshi Created Bitcoin and Why It Is Necessary Today?

Why Satoshi Created Bitcoin and Why It Is Necessary Today?

It seems Satoshi knew what he was doing: he deliberately sought to keep his identity undisclosed, not for his own benefit but for the greater good. He wanted Bitcoin to succeed because he knew it could bring immense benefits to people worldwide (except perhaps the current financial and political ruling classes), and he knew that for Bitcoin to succeed, it shouldn’t have a leader.

Sometimes I think Satoshi must have been a big fan of the movie V for Vendetta. I can picture him at home on the couch in 2005 (three years before Bitcoin’s announcement), deeply impressed by the film, but inspired on a much deeper level. It could have planted in his mind a path, a course of action—the hero’s determination to hide his identity behind a mask, becoming more than a person—an embodiment of an idea, a mission.

Embracing the Myth

At some point, I stopped trying to figure out who Satoshi Nakamoto was (or were). Instead, I chose to accept the myth that he is no longer with us, that he has already passed away. Over time, this evolved into an understanding of our collective responsibility to spread this idea—that Satoshi is dead—thus aiding this deliberate mystification.

In conclusion, Satoshi’s creation of Bitcoin was a visionary act aimed at providing a decentralized, secure, and transparent financial system that could withstand the manipulation and inefficiencies of the traditional financial world. His choice to remain anonymous ensured that Bitcoin would not be tainted by the influence or fallibility of any one person, preserving its core principle of decentralized consensus and empowering people worldwide.

Motivation

To understand why Bitcoin was created, it is essential to grasp the context of the time and the history that led to it.

Bitcoin was launched on January 9, 2009. In the first block, Satoshi embedded a relevant newspaper headline from The Times: “Chancellor on brink of second bailout for banks.” This was during the global financial crisis, the largest market disaster in several generations. And what solution did politicians and experts come up with? Bailouts through additional funding. Certain banks were deemed “too big to fail” and were bailed out by printing money and distributing it to these banks.

At first glance, this seems reasonable. However, it essentially meant that some mega-corporations received immunity from the consequences of their business decisions from a few powerful individuals. Equal conditions no longer existed: profits were privatized, while losses were socialized. The market mechanism was distorted.

Moreover, money is not just printed out of thin air. Instead, the purchasing power of all existing money is redistributed. If there are 1,000 dollars in the world and you print another 100, you are taking the existing purchasing power of those 1,000 dollars and spreading it over 1,100. The purchasing power of the original 1,000 dollars is now equivalent to 910. Essentially, printing an additional 100 dollars directly costs existing holders 9% of the purchasing power of their savings. New dollars are “printed” from the purchasing power subtly stolen from current holders.

The Occupy Wall Street movement was an outraged reaction to the injustice and indirect theft involved in bailing out banks, and Satoshi must have foreseen this. Bitcoin appeared a few months after the global financial crisis began, but there is no doubt that by that time, Satoshi had been working on it for several years. This was not a reactionary protest demanding change, transparency, and fairness. Instead, Satoshi was actively preparing a system that would ensure change, transparency, and fairness by itself, creating superior financial incentives compared to the existing system for ordinary savers.

Purpose

With Bitcoin, Satoshi wanted to put an end to the injustice of selective bank bailouts by making any bailouts impossible, ever. As an alternative to fake capitalism, he created a radical system of uncompromising and steadfast capitalism. Yes, it is a harsh system, but the only way to prevent abuse of privileged power is to ensure that no one holds such power, including Satoshi himself.

Instead of a system where those closest to the politicians controlling the money flow benefit (often referred to as Cantillonaires, referencing Richard Cantillon, an 18th-century economist who first described this phenomenon), Satoshi proposed a system where the money flow is predetermined, finite, and distributed through objective and fair global competition. Instead of a system that rewards those who gain access to a disproportionate share of newly printed money, Satoshi created a system that inherently rewards anyone who simply holds their money for a long time—a radical idea in today’s fiat environment.

This implies creating a new paradigm centered on deflation rather than the inflationary race, which, as the direct beneficiaries of the inflationary money supply tell us, supposedly serves all our interests. In this new system, the purchasing power of money increases over time due to the remarkable property of these funds: their growing scarcity.

Money for hardworking ordinary people, not for bankers and political insiders—this is what Satoshi wanted for the world, and that is why he created Bitcoin. Satoshi has given you a choice. Now, you can decide in which system you want to store your money.

TL;DR:

Satoshi created Bitcoin to address the issues that arose from the 2008 financial crisis, where bank bailouts led to unfair economic distortions. Bitcoin was designed to be a decentralized, transparent alternative that removes the power of financial elites, ensuring that wealth is distributed fairly. By keeping his identity secret, Satoshi ensured Bitcoin’s mission remained independent, making it a powerful tool for ordinary people to protect their wealth from inflation and centralized control.