Remembering Why Bitcoin Was Launched - 14 Years Ago
Sometimes it's very important that you think about the reason why Bitcoin was launched. What was the idea of it all? Because you need to know where you're coming from, in order to understand better where you're going to.
You need to think about the coinbase parameter, which is the name of a data entry of transaction generating new Bitcoin, as a form of block reward, that gave birth to the name of the Coinbase crypto exchange - speaking of the genesis block.
The first block in the Bitcoin block chain is regarded as the genesis block. This block was mined by the person or people who created Bitcoin, using the pseudonym Satoshi Nakamoto, Jan 03 2009. The genesis block contains a single transaction which remains as the first ever transaction on the Bitcoin network. It is also called the Coinbase transaction.
On the Coinbase transaction was a message from Satoshi Nakamoto that said, "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks." This message is in connection to a headline in the British newspaper, “The Times”. It serves as a timestamp for the block.
The reason why Bitcoin was created was to counter the modern day financial banking system, and the fractional reserve banking. Bitcoin serves as an alternative to the traditional centralized banking system, controlled completely by the government. The idea of Bitcoin is to control economic manipulations by modern financial systems.
The biggest problem with the traditional financial systems is that fiat currencies can be printed by the central bank without real limits. This has led to hyperinflation in various parts of the world. Fiat currencies was forced upon the world, but Bitcoin has created an alternative. Seeing how global inflation is getting worst each and everyday, it's important now for you to remember the reason why Bitcoin was launched.