Despite his misgivings, Nakamoto believed that bitcoin's efficiency would surpass traditional finance.
The email provided a broader vision of #bitcoin and suggested possible uses beyond money.
Nakamoto feared that presenting bitcoin as an investment would attract unwanted attention.
Recently published emails from the early days of bitcoin offer a glimpse into the mind of its enigmatic creator, Satoshi Nakamoto. Published by Martia Marmy, a key figure in the development of bitcoin, the emails reveal Nakamoto's foresight about the potential power the #cryptocurrency would require and his fear of legal scrutiny.
The letters, dating back to 2009, were made public as part of a lawsuit against Craig Wright, who claims to be Nakamoto. While the legality of the lawsuit is still being debated, the emails provide valuable insight into the early development and challenges bitcoin faced.
One key point is Nakamoto's perception of the power consumption inherent in Bitcoin's proof-of-work (PoW) consensus mechanism. PoW, necessary to protect the network and prevent double-spending, requires significant computing power, raising concerns about its environmental impact.
Recognizing these concerns, Nakamoto argued that bitcoin's power consumption is less than the inefficiencies of the traditional banking system. He envisioned bitcoin replacing "billions of dollars of bank fees" and resource-intensive infrastructure with a more efficient system.
Satoshi believed that bitcoin #mining would be less energy-intensive than the traditional banking system.
Interestingly, the letter also reveals that Nakamoto saw bitcoin not only as a financial instrument, but also from a broader perspective. He saw bitcoin as a "decentralized, secure time information provider" that could time-stamp any information with a few lines of code. This suggests that he envisioned potential uses for bitcoin beyond the monetary sphere.
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