Bitcoin Wild History | No bitcoin in 2008 (on)

In 2008, an eventful autumn. The global financial turmoil triggered by the US subprime mortgage crisis has left many of our large-scale laborers unemployed, and small and medium-sized enterprises have closed down one after another. Everyone is unable to do anything because of economic pressure. The disaster is not alone. Before the advent of the world-famous Olympic Games, the Chinese people first ushered in a century-long snowstorm in the south, and then the Sichuan people suffered another Wenchuan earthquake. The economic downturn combined with the impact of natural disasters has put people in a sad social atmosphere. It was not until the opening of the Beijing Olympics in the second half of the year that people gradually became laughter because the Chinese team struggled all the way in the Olympics, and they won the honor of the Olympic gold medal.

Throughout 2008, the Chinese people were united in their efforts to fight the earthquake, and foreign people were struggling to cope with the economic crisis. In general, this year, humans are very busy! However, when everyone was overwhelmed and concentrating on dealing with various emergencies, a trivial little thing happened on the Internet—Zhong Bencong released the Bitcoin White Paper. At that time, the incident was so small that there was little attention, and no one could think that after 10 years, it became the focus of the millions of people around the world.

There are no bitcoins in 2008, only white papers. Nakamoto Satoshi, a network nickname, behind this nickname is an organization or a person, and there is no accurate answer so far, but netizens tend to think that Satoshi Nakamoto is a computer genius. This person usually likes to be active in a small network anonymous forum with the theme of technical discussion. The computer singers from all over the world gathered in the forum to discuss various new technologies and techniques. Everyone questioned each other and touted each other. It can be said that if anyone can be recognized by the people in the forum, it is definitely a supreme honor.

This forum has existed since the 1990s. There are different types of technology big cows appearing in each period, but Nakamoto is a little-known person who was not known before 2008. What time node started to enter the forum? Everyone knows nothing because he almost never bubbling, has been diving, and rarely publishes forum content. From 2008 to November 1, a very normal day, about 6 o'clock in the afternoon, the mysterious founder of Bitcoin, Nakamoto Satoshi, posted an article titled "Bitcoin: A Peer-to-Peer" on this anonymous forum. The paper of Electronic Cash System, which was later called the Bitcoin white paper, what is the white paper? A simple understanding is a planning book for technical theory. After the publication of the paper, there were several geeks who left comments below. Some people think that Satoshi Nakamoto is a small character who wants to be a little famous in the forum. Some people also read his white paper and think that his It is impossible for the technical system to achieve its landing. After all, many of the big cows in the forum have tried similar payment technologies, and all ended in failure. In short, everyone is skeptical. For these demanding technical geeks, it is obviously not feasible to convince them with a paper. Of course, Nakamoto did not seem to intend to convince these people. He did not explain too much detail in the comment area, but planned to silence and continue to enter the next bitcoin technology development stage.

This Nakamoto magazine is the first place where the word "bitcoin" first appeared. It represents the official birth of Bitcoin on a theoretical level. At the time, the publication of the white paper was a trivial matter, but 10 years later, the paper was considered to be one of the nine small things that affected the world in the early 21st century.

As early as August 2008, Nakamoto had published a paper on the issue of a cryptocurrency at the forum. The content of the paper was quite similar to that of Bitcoin. After three months of polishing, he was on November 1st. The official version of the Bitcoin paper was released, followed by another three months. On January 9, 2009, Nakamoto wrote the text "The Bitcoin test version will go online tomorrow" in his forum account. Record, all this seems to be planned in advance.

Nakamoto has invented Bitcoin by himself. Some people have commented that Nakamoto is a big man standing on the shoulders of giants. Why is there such a saying? The reason is that Nakamoto has been able to create Bitcoin. In fact, it has absorbed the unique ideas and mature technologies of many predecessors. Without the paving of these predecessors, Bitcoin will never be born easily. So, to understand the history of Bitcoin more completely, it is necessary to trace the story before the birth of this digital currency.

The first section of the currency is non-state

Let's go back to the 1970s and see what happens to the world at that time. At that time, the western countries were in a period of stagflation in the economy. The so-called stagflation was stagnant inflation, an economic phenomenon in which both unemployment and inflation were rising. In layman's terms, it means that prices are rising, and the number of unemployed is also increasing. The Keynesian school, which occupied the position of the center of economics at the time, failed. They once thought that the inflationary inflation and the economic recession could not coexist. They could not explain the socio-economic status that contradicted their own theories, while the monetary school economists tried to get from the currency. From the perspective of this economic stagflation phenomenon, but only to study the impact of changes in the amount of money on the overall price level, ignoring other factors, it is still difficult to solve this unprecedented economic recession.

At this time, Hayek, an economist who insisted on free market capitalism and against Keynesianism, stood up. He pointed the culprit to the institution that distort the relative price and believed that the amount of money injected and withdrawn from circulation was relative to the price. The impact is huge. In other words, because the government that has long-term currency distribution rights constantly issues money in order to solve the unemployment problem, the economy has formed long-term inflation, which has led to a distortion of the price structure. Large-scale unemployment. Although Hayek explained this economic recession very accurately, his view of a free market economy was not taken seriously by the government and the public at the time, so the "non-nationalization of currency" he published for this was also It has been unknown for a long time.

An unpopular economic book

Hayek is an active and successful British economist. His economic work, The Road to Serfdom, has caused a lot of people to go. However, in his later years, Hayek did not stop researching liberal economicism, but instead directly aimed his attention to the highest level of the free economy — legal tender. He boldly questioned the rationality of the monopoly of currency distribution rights by state government agencies, proposed a shocking "competitive currency" theory, and wrote the last book of his life – "non-stateization of money."

In this book, Hayek has no evasive criticism of the government's monopoly of currency distribution rights, which is more harmful than good, and similar to the well-known father of market economics, Adam Smith, if you want to guarantee freedom. The system, the responsibility of the government should not include the control of currency distribution rights. In the development of the entire currency, the government can monopolize the distribution rights only because this method is relatively efficient. It does not mean that the government issues currency is the only means, nor does it mean that people fully believe in the currency issued by the government. It is people who can't do anything about the change in the value of money.

Hayek’s competitive monetary theory is to break the government’s monopoly of currency distribution rights and promote the free distribution of money. If the government no longer dominates the currency distribution rights and different institutions are free to issue different currencies, then the people have the option, they will always pay attention to the changes in the value of different currencies, and the currency issuers will try to adjust the amount of money to make themselves The value of the currency remains stable to avoid being eliminated by the people. In other words, let the market determine the survival of the currency, and the issuer can only survive if the currency of the issue is stable.

The thin booklet "Non-State of Money" was published in 1976, although at that time Hayek had become famous for his "selling to slavery" and the Nobel Prize in Economics, but at the time This economic book of forward thinking has not caused much repercussions in the economics world. It is a pity that until Hayek died, this book has not been recognized by the public and has been listed as an unpopular economics book by the academic community. For more than 40 years, this unpopular economic book has been submerged in the dust of history.

The theoretical destination of Bitcoin

Hayek’s legality description and distribution mechanism in private currency has important guiding significance for cryptocurrency represented by Bitcoin. The cryptocurrency vs legal tender is the contest between the invisible hand (market mechanism) and the government mechanism (invisible hand). It is the contest between the digital monetary financial system and the legal monetary financial system. It is also the security and efficiency of the distributed ledger and the central large database. The contest on the more is the contest between power and thought in the decentralized organization and the centralization organization. Hayek slammed the state monopoly on legal currency and proposed the rationality of "competitive currency" instead of legal currency monopoly. In fact, it seeks legal status for cryptocurrency, although Hayek admits that this government will not agree with the government’s business. Will not condone private currency. However, it is very important to strive for legal space for “competitive currencies” and even determine the fate and death of cryptocurrencies.

After 42 years, the global financial crisis hit rapidly in 2008, and the world economy once again fell into recession. When governments of various countries actively launched monetary policy to save the market, a mysterious genius figure Nakamoto Satoshi (Sakamoto Satoshi: founder of Bitcoin) In the early days when Bitcoin was created, he has been active on the Internet as a virtual identity. Around 2012, he disappeared directly on the Internet, and his identity has become a mystery. He published a paper: "Bitcoin White Paper: A Peer-to-Peer Electronics Cash system. At the beginning of the following year, Satoshi Nakamoto developed a blockchain network system client that supports bitcoin operations (blockchain: the term blockchain was not available at the time, and people referred to this client as the bitcoin system). This marks the birth of a new type of distributed cash system and a new type of currency.

After 10 years of ups and downs in the new cryptocurrency field, people have gradually discovered that the new cryptocurrency represented by Bitcoin is fulfilling the embarrassment of economist Hayek's year–private currency. Bitcoin advocates seem to have found a theoretical destination, that is, the famous Hayek and its not-known "non-nationalization of currency", so they also found a backing in the huge criticism of bitcoin and cryptocurrency. It has also become the theory that most cryptocurrency supporters firmly believe, and it is the name of Bitcoin.

To be continued. . . .

(Reprinted please specify: from the block chain Yao Shu original "Bitcoin Wild History")