Bitcoin is doing well in 2021 so far. All time highs continue being broken. The price has already increased by over $4,000 in the couple of days since the beginning of the New Year.
Besides the recent price increases and increase in institutional adoption, Bitcoin celebrates another milestone. Twelve years ago today, the first Bitcoin block ever was mined. This act created a platform that revolutionized the financial industry. Moreover, it permanently changed how people view the concepts of ‘money’ and ‘value’. Also, inside this first block was a message as relevant today as it was 12 years ago.
A message that rings true today
Hartej Sawhney, a crypto investor, entrepreneur, and Principal at Zokyo.io tweeted the message from the first block. It contained the following text. “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”.
This message was created by Satoshi Nakomoto, the anonymous founder of Bitcoin. The message referenced the massive government bailouts following the 2008 global financial crisis. The headline from a newspaper highlights the continued inflation and bank bail-outs taking place across countries’ financial systems.
In 2021, a global pandemic is causing massive social and economic uncertainty across the globe. Many countries and the citizens of those countries are experiencing another bout of changes to their currency. When looking at the US dollar for example, we can see that about 35 percent of all US dollars were printed in 2020. For a country established in 1776, printing over a third of the total currency in history in the matter of one year can be quite worrying to USD holders.
Bitcoin a potential solution
Satoshi created Bitcoin to offer an alternative and potentially mitigate the problem. Although many people do not have to worry about hyper inflation today, many others do. Bitcoin, with its decentralized infrastructure and immutable, pre-determined supply, can act as a hedge against inflation.
Bitcoin was built to be a more optimal store and transfer of value than traditional fiat currencies. As such, it has already impacted the world in a massive way. At one time, two users exchanged 10,000 BTC for two pizzas. Today, we face $30,000+ prices and mainstream institutional adoption. Bitcoin has come a very long way.
Although much has changed since the creation of Bitcoin, Bitcoin is still the same. This is probably one of the reasons investors still flock to it as an alternative store of value and hedge against inflation.
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