Why Silicon Valley Followed Bitcoin

By  //  March 24, 2022

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Bitcoin, a virtual currency, celebrated its 13th anniversary in January 2022. While people and investors raised the high ideal that Bitcoin would change the world, the movement leading to speculation was hidden there. From the 13-year history, we will reconsider the merits and demerits of Bitcoin.

This January marks the 13th anniversary of the birth of Bitcoin, a virtual currency (cryptocurrency, crypto asset). Looking back, how fierce it was! Here you can check the detailed article on Central Banks versus Bitcoin.

It started quietly at first, and after the sharp rise since the Dutch tulip bubble, all currencies imitated based on the blockchain technology that underlies it has risen. And in 2018, prices fell sharply and steadily. Arranging the familiar joke about the life of a Hollywood star in a Silicon Valley-style, it starts with “Who is Bitcoin?” followed by “I want to use Bitcoin!” And “I want to use something like Bitcoin! “And “Who is Bitcoin?”

It has been 13 years since the inventor “Satoshi Nakamoto” mined the first ledger called “Genesis Block”. Yet, Bitcoin has created more than just a parable born amid enthusiasm.

Bitcoin is also directly linked to Silicon Valley’s temperament in that it focused on early adopter creation of wealth and, in particular, the destruction of centralized banking systems. Big tech companies Meta and Google are trying to manipulate the masses for money without paying attention to social losses. If you have that idea, the story of Bitcoin will be a tailor-made source.

Genius Invention

I met Bitcoin at a relatively young age. 1 Bitcoin was $ 17 at the time, but it was in the middle of recovery from the decline even then. I have a brief memory of that feeling, “This is a ridiculous thought experiment.” Prevent the “copy” that is the fate of digital currency, and make the owner public to everyone through the constantly updated “indelible books”. But, of course, some genius invented such a virtual currency.

However, such usage has not been seen yet. I’ve found several companies in Vermont and one in Hungary that accept Bitcoin, but even those companies seem sceptical of all Bitcoin attempts.

On the other hand, Bitcoin seemed to have potential as an influential online collaboration tool. Or it seemed like a way to earn trust within a group that did not intend to do conversion and trading of money. For example, Wikipedia, which operates with high transparency and is aware of the latest version, is also a program used by a group of enthusiastic people to create value.

However, I couldn’t understand why some people were willing to accept Bitcoin as payment without sharing their ideas and projects. But now, there is something straightforward. But unfortunately, I didn’t have much business talent or dystopian fantasy.

From “thought experiment” to speculation

Gavin Andersen, who led the software development that runs Bitcoin said, “When I look back, I imagine an ominous sign every time I think about Bitcoin in terms of market capitalization,” said. Because the value of Bitcoin means that it is the product of “the price of coins” and “the overall number of coins inflow”.

In short, the “thought experiment” was transformed into speculation. No one at the time knew how seriously people should take Bitcoin. For example, the Electronic Frontier Foundation (EFF), a digital rights advocacy group, began returning in 2011 because Bitcoin donations are legally ambiguous. However, EFF changed the policy, and the organization resumed acceptance in the end.

One of the organizations that enthusiastically accepted Bitcoin was Wikileaks, a world-class exposure site. Wikileaks expressed ironic gratitude to the US government in 2017 in a tweet reminiscent of the site’s founder Julian Assange. It says, “We will invest in Bitcoin, and the return will exceed 50,000%.” However, Wikileaks builds that US government measures have made it challenging to receive general donations after 2010.

Introducing “Bitcoin Millionaire”

Two characteristics will explain Bitcoin and its early growth. First, it can “own” some growing speculative businesses and trade without government snooping. Second, bitcoin experts speculate in 2012 that the primary use of Bitcoin is the small purchase of drugs on the largest dark site in history, Silk Road. But then, Bitcoin, whose value has increased for these purposes, has begun to be bought as an investment by those trying to earn cash quickly.