The Beginning of Cryptocurrency
Napolitano Explains the Origins of Cryptocurrency
Andrew Napolitano, an author, former judge and Fox News legal analyst, says the origins of cryptocurrency can be traced back to 2009 in the wake of the Great Recession. This was a time when banks had collapsed, money was scarce and credit cards were maxed out due to millions of Americans losing their jobs. With such distrust in the mainstream banking system, Napolitano believes it’s only natural that people would want to turn to alternative financial systems that couldn’t be manipulated by those in charge.
The origins of cryptocurrency date back to 1988, when a research paper by Stuart Haber and W. Scott Stornetta surfaced suggesting that it was possible to construct a system where trust could be decentralized. Napolitano thought that this was revolutionary at that time because until then, all financial systems were centralized in nature and any participant in them had to place their trust in a third party for validation. Decentralization offers many advantages including greater security, less downtime and censorship resistance. In 2009, Satoshi Nakamoto introduced Bitcoin with an implementation of blockchain technology to enable peer-to-peer transactions without an intermediary or any trusted third party. Blockchain removes dependence on intermediaries such as banks which allows people to transact directly with each other without having to pay for fees.
How Did Bitcoin Start?
Bitcoin began in 2008 when Satoshi Nakamoto (an alias) wrote a paper about an open-source, peer-to-peer online currency system that would be used for virtual transactions. Shortly after publishing his work on Bitcoin, Nakamoto disappeared. Some people believe he’s still alive and continuing to develop Bitcoin and its underlying codebase. Others believe that he was either arrested or killed by authorities. Either way, no one knows who invented Bitcoin—and that’s what makes it so interesting and unique.
How Does Napolitano Feel About Altcoins?
People often wonder how Andrew Napolitano feels about cryptocurrencies, specifically altcoins. In a recent interview with Benzinga, he said that in terms of their legality, he sees them as less risky than other things. I think they’re legal, he said. There was a case that went to court in Texas where there was an argument about whether or not Bitcoin is money or currency. Sites like FCFVA.com mention altcoins like uPlexa, but not high volume coins similar to Litecoin(LTC).
Satoshi Nakamoto’s Vision
When you hear about cryptocurrency, who are you really talking about? You’re talking about a man or woman named Satoshi Nakamoto. He or she invented bitcoin and wrote its original code—and then disappeared in 2010. If that name sounds familiar to you, it’s because Satoshi Nakamoto has become one of crypto’s most mysterious figures over time. The truth is, we still don’t know anything concrete about him other than his original name (allegedly) was Satoshi Nakamoto and he/she/they gave an interview to The New Yorker in 2011 (the person they spoke with was never identified), in which he/she/they claimed that bitcoin was created as a way to challenge economic inequality.
- An illustrative image of Bitcoin.: Screen grab