The anniversary of a revolution
Ten years ago, at the beginning of November 2008, someone called Satoshi Nakamoto published an article in which he called for building a virtual cash system without a central entity to regulate it. The underlying idea was that there was no bank intervention, and this virtual cash would be used to make payments for goods and services. The bitcoin was born.
Nakamoto, who is unclear if it is a person or a group, established that the main problem of transactions on the Internet was trust. Confidence that is only provided by a central authority, capable of maintaining balance records resulting from the exchanges. The bitcoin came to solve this problem of trust (and its associated costs) through the validation of records between the parties by means of cryptography.
But in this framework there is one more problem to solve. How could all the parties involved maintain a consensus over all transactions carried out? Well, through the uniform approval of the parties to each transaction and the subsequent registration in each of them, disappearing the necessity of a trusted third party to validate the aforementioned balances.
Opinions on bitcoin as a currency divide the financial and business world. Personalities such as Peter Thiel, founder of Paypal, said that the potential of bitcoin is underestimated, entities such as the Bank of Spain wants to regulate the currency while Jamie Dimon, CEO of JP Morgan said that this virtual currency it’s a fraud, comparable to the tulip bubble of the seventeenth century.
Bitcoin and the future
Beyond the volatility of its value (it quoted twenty thousand dollars by last December and today it’s valued at one third of that value) and the controversies that its use holds for those who do not want to leave traces of dark or illegal transactions ; it can not be denied that bitcoin (and above all their underlying technology, the blockchain) revolutionized the finance and the economy, and managing to alter the natural state of the financial industry, thus opening a real question about how it will be in the future.