Bitcoin: A Legitimate Cure for a Broken Money System

When Satoshi created Bitcoin, it was a revolutionary concept. The idea was so innovative it has spurred a constellation of alternative cryptocurrencies and blockchain protocols. However, some of these distributed ledger concepts are no more than hype and illusionary technologies.

Also Read: Bitcoin: The Most Immutable Ledger of Them All

Bitcoin’s Birth and Projects That Followed

When Bitcoin first appeared, few took it seriously. Government officials and banks deemed the magical internet money either a ponzi, or impractical. Then after a year or so, the world saw several alternative cryptocurrencies pop up. Bitcoin and altcoins ruled the roost up until 2014, when many digital assets including Bitcoin suffered a price decline.

Fast forward to 2015, the year of the “blockchain.” Bureaucrats and legacy finance found Bitcoin to be a technological advancement, but deemed it taboo. It was the underlying technology, they said, that separated it from traditional systems. Bitcoin was no longer a joke, but its transparency and immutability were a problem for corporate entities. Individuals and well-known organizations began lauding blockchain technology.

As far as Bitcoin is concerned, the blockchain is a peer-to-peer network meant to verify cryptographic transactions. A network of nodes and miners authenticates these transactions. However blockchain technology proponents believe distributed ledgers can work without Bitcoin. They feel different methods, such as Proof-of-Stake (PoS) or some other concoction, can verify the accounting.

The 1800s Snake Oil Salesmen

Back in the 1800s, Chinese workers who helped build the transcontinental railroad system brought with them various traditional medicines. One of these was snake oil, derived from the Chinese water snake. Rich in omega-3 acids, the medicine was a legitimate ointment that treated ailments such as arthritis.

However, over time, Americans who learned about this medicine believed they could harness this oil to make a profit. Since there were no Chinese water snakes, some entrepreneurs used rattlesnakes which contain significantly less omega-3. Alongside this, a vast majority of these medicine-men used no snake oil at all.

At the time, as with the current private blockchain hype, patenting medicine was a profitable phenomenon across America and Europe. No-one realized how over stimulated this market had become until the U.S. Food and Drug Administration busted the infamous Clark Stanley. Stanley produced an ointment containing no snake oil at all, but lied and said he used rattlesnakes.

After Stanley’s arrest, the public began building the stereotype of snake oil salesmen as fraudsters.

‘Medicine Men’ Have Returned

Similarly, blockchain technology proponents are trying to promote a protocol without Bitcoin. Some of them use different “snake oils” like PoS. Others use nothing at all. They bolster blockchain technology so strongly that often the word alone sells the product. Unfortunately, a great majority of these so-called blockchains are merely smoke and mirrors.

If one does even a little research on these blockchains, they will find their true worth. Lots of them hardly ever explain how they secure the network. On the other hand, Bitcoin has its mining network — a very well known method of securing a blockchain.

But, in many projects, there are no miners. Sometimes there isn’t any software at all. In the programming world, such a project earns the title “vaporware.”

To Revolutionize The Broken Money System Bitcoin’s Blockchain is The Cure

Satoshi published his white paper in 2008. In January 2009, he released the first client to the public. As an anonymous creator Satoshi, drew accusations of fraud, but his code worked. In fact, it still works today, years after he disappeared.

Bitcoin is the most trusted blockchain to date, and there isn’t anything that matches it so far. It’s now a $10 billion dollar economy that does exactly what Satoshi’s white paper said it would. With all gimmicks and niche blockchain applications pushed aside, Bitcoin is the one and only trusted blockchain.

What do you think about the blockchain hype? Let us know in the comments below.

Images courtesy of Pixabay.

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