New Emails from Satoshi Revealed, Bitcoin Creator Says Fiat Currencies Violate People's Trust
Newly released emails from Satoshi Nakamoto back in May 2009 show that the creator of Bitcoin (BTC) has long been concerned about the devaluation of fiat currencies by central banks.
The numerous emails were published by early Bitcoin contributor Martti Malmi, who said he was uncomfortable sharing his private correspondence with Satoshi but decided to do so after serving as a witness for a trial in the United Kingdom Kingdom occurred, which may have involved self-proclaimed BTC inventor Craig Wright.
In an email to Malmi, Satoshi highlights the biggest flaw of government-issued currencies like the US dollar.
“The basic problem with conventional currencies is the great trust that is required for them to work. The central bank must be trusted not to devalue the currency, but the history of fiat currencies is full of violations of that trust.
Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction of the reserves. We must trust them with our privacy and trust them not to allow identity thieves to raid our accounts.”
Data from the US Bureau of Labor Statistics shows that the purchasing power of the US dollar in 2021, taking inflation into account, has fallen by about 20% since 2010.
Satoshi also says that throughout history, people have always used assets with a limited supply as money. He points out that people's perceptions influence the value of a currency more than its intended use.
“Historically, people accepted scarce goods as money, if necessary, whatever was at hand, such as shells or stones. Each has a core of utility that helped move the process forward, but in the end the monetary value is much greater than the functional value alone.
Most of the value comes from the value others place on it. Gold, for example, is pretty, non-corrosive, and easily malleable, but most of its value clearly doesn't come from that. Brass is shiny and has a similar color. The vast majority of gold sits unused in vaults, owned by governments that don't care about its appearance.
Until now, there has been no scarce commodity that could be traded through a communication channel without a trusted third party. If there is a desire to use a form of money that can be traded over the internet without TTP (trusted third parties), then that is now possible.”
At the time of writing, Bitcoin is trading at $51,636, up approximately 1,127,931% since the first Bitcoin fiat transaction in 2009, conducted by Malmi himself.
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