If Satoshi Came Back Today, Would He Be Proud of Us?
Hey everyone. Before we start, I want you to take a second, take a deep breath, and give yourself a pat on the back. Your trading account is most likely underwater, the McDonald’s application you sent in last week didn’t even get you a call back (congrats to everyone who got brought in for an interview), and everyone on crypto Twitter is coming for each other’s heads, but you… well, you my friend are still here.
Your convictions have been tested. Your soul has been bruised. You know what, you get the point. Let’s move on. Welcome back to a blog that is less of an educational piece but rather a piece to inspire some thought provocation. Also, it's just like my opinion, man. I’m not a Satoshi scholar. I’m just thinking out loud. This blog aims to inspire conversation, not invoke anger. Plus I really wanted to write something where I could add memes. I’m writing this on 05.06.22 and the price action/market as a whole stinks, so what better way to try and pass time than memes and ranting.
In times of bear markets, many are left wondering why they didn’t take profits when they had a chance. Don’t beat yourself up. After all, there wasn’t an exact moment that would have made you want to sell. In bull markets, dips bounce back, until they don’t. One thing I have noticed on crypto Twitter is since the market turned bearish, people have become increasingly fearful and incorrect in their price predictions. In bull markets the euphoria is overwhelming and you’d have to be digging in the bottom of the barrel to find a coin that didn’t go parabolic. As the market has flipped, people have shown their true colors. In my opinion, the fear and incorrect price predictions have led to many abandoning the principles of Bitcoins creation, in hopes of becoming rich or being able to tell everyone they were right. Also, since its creation, Bitcoin has become seen by many as a store of value and is being adopted by many financial institutions. This article is not about whether the transformation of Bitcoin is good or bad, but rather a deeper look into the question if the Godfather of crypto would approve of how his creation has developed.
Why Did Satoshi Create Bitcoin?
Before we discuss the current state of Bitcoin, I feel it’s important we know why it was created. On October 28th, 2008, Satoshi Nakamoto released a whitepaper for a peer-to-peer electronic payments system that did not require the use of a third-party financial institution. He was an OG redditor and a revolutionary. Satoshi’s reasons for the creation of Bitcoin all came from a complete lack of trust in a financial system that was under the control of governments and financial institutions that abused it. If you were alive for that 2008 recession you know the pain that was caused by these institutions. Banks got bailed out and you got screwed over. Most people probably still don’t even know how it happened. This is not a blog about what caused the recession, but for those unaware, here is a quick breakdown of why many lack faith in today’s “leaders”.
- Loan originators (banks), investment banks, insurance agencies, and credit rating agencies are all intertwined in the housing market
- Each institution makes more money when more people are taking out loans
- Due to profit, each institution has an incentive to do whatever they can to get people to take out loans, regardless of the risk (they made it easier for people seeking loans to get one by lowering qualifications)
- When loans cannot be repaid, it sets a chain reaction of defaulting loans
- When money is not making its way back to the loan originators, insurance companies can not repay all the agencies who depend on the money
- These agencies failed and had mommy and daddy (the government) turn on the money pwinta and make evweething betta (for them)
- The companies get their bailout, continue to go out to nice steak dinners in their fancy suits, and the average person gets laid off or screwed over financially, everyone is happy…..wait
The moral of the story, big guys abuse system, little guy suck it up and deal with it. I don’t know where Satoshi stood politically, but his Bitcoin creation would be argued to be Libertarian in nature. Bitcoin’s purpose was to give people a way to be liberated from these institutions that keep dragging them through the mud with no repercussions. Bitcoin was intended to be anti-bank and anti-government. If you are like Satoshi you most likely dislike “the suits” and don’t want anything to do with them.
Let’s take a meme break and give you some time to doordash some Wendy’s and get back at McDonald’s for not calling you back. Heck I may even be your driver (not kidding!)
As I was saying…
Why Are You Buying?
With all the talk about price predictions coupled with the exponential increase in new buyers, I think it’s reasonable to question why people are buying. While everyone is in the same place, I often wonder about the different paths that were taken. With the earliest adopters who were buying when Bitcoin had almost no value, it is easy to know where they stand. As governments and financial institutions seemingly continue to get rich and screw over the little guy, it’s not surprising people do more research and put faith in Bitcoin. However, a large part of the market sees wealth creation and buy in as a get-rich-quick scheme. If that wasn’t true, you wouldn’t see all these influencers gaining attention by flaunting their new sports cars or fancy houses. This leads me to the next topic that would definitely make Satoshi sick.
The “Influencer” Problem
Let me start by prefacing that this article is not crapping on all influencers. Many who have spent time in the markets know there are some quality people trying to help and have gained attention by providing valuable insight, new ideas, and even just funny memes. One of my favorite Twitter followers is @zachxbt (he is a must-follow). He is an on-chain detective (not an official title) and exposes some of the biggest influencers by finding their on-chain activity and then showing how they acted in a deceptive manner. When you go to some of these “big” influencers, they offer absolutely no value. Their feed is full of tweets like, “Bitcoin going to $100,000!!!”, “What are some of your favorite altcoins to buy?”, and “This is going to be the biggest wealth transfer in history!”. Newsflash: in all of Satoshi’s emails, not once did he talk about wealth transfer. Satoshi was not trying to make people rich, he was trying to develop a new system. These influencers do paid shills for coins that were gifted to them by the project, and then as they are tweeting about the project taking off, they are simultaneously dumping their coins for a profit. Literally stealing from their biggest supporters. Satoshi was a diamond-handed saint who didn’t care about money. These influencers are without a doubt misaligned with Satoshi and his principles, and border on being outright criminal fraudsters. A section talking about scumbag influencers wouldn’t be complete without this guy right here :
This man has 837k Twitter followers, *allegedly* (old legal trick right here) gets paid to promote shi*coins without disclosing his ad payment, and then watches these coins bleed out. This car and tacky jumpsuit were paid for by those 837k *allegedly*. Unfortunately, nobody can be surprised that people like this try to get rich in these environments regardless of the cost. What does suck is that people like this will continue to have a platform. Newbies will come in, get burned, leave, and then a new wave will come in and repeat. In a market that still gives people like this a voice, one could argue we deserve a crash to get people like this out. How do you think Satoshi would feel if he came back and saw people using his creation for self-promotion and fraud?
Are We Creating A New Version of the Old System?
Unlike the previous section, this one will be more of a debate on whether Satoshi would approve or not. Since 2009, Bitcoin was seen as a payment system. Today, many argue for it to be an attempt to replace the entire financial system. One of the reasons people are drawn to crypto is the idea of making money they never thought they could. Historically, the top 1% of wealthy individuals own 99% of the world’s value. People often feel the system is rigged while the rich get richer and we are left with no opportunity for financial freedom. People see crypto as this beacon of light. However, let us take a look at the current Bitcoin distribution.
The top 0.35% of Bitcoin owners own 85.22% of the total market. Yes I know Satoshi owns around 1 million coins and isn’t selling so it warps the stats, but the fact remains the Bitcoin distribution is very top-heavy. With a system being this top-heavy couldn’t it be argued we just replaced the old system with different people? Could the centralized exchanges just be viewed as the new banks? I mean they own a crapload of wealth and are under government control (just like a bank). The early adopters who accumulated at insanely cheap prices are now insanely wealthy. Can’t these people be considered the new “suits” who hold generational wealth? If they believe in it what are the chances they sell it? The chance for accumulation is pretty minimal at this point for a person with an average income. With Bitcoin prices hovering around $40k, the biggest accumulators are now going to primarily consist of the wealthiest individuals and institutions. Did Satoshi want Bitcoins distributed more evenly? Did he care? At no point did Satoshi discuss distributing coins. His main goal was to take some power back from financial entities. It would be interesting to hear his take on distribution though.
With the explosion of centralized exchanges, their similarities to banks are getting closer and closer. To become as mainstream as it has, centralized crypto entities have worked with regulators to help speed up adoption. It would be reasonable to debate whether governments are needed for adoption. On one hand, governments can’t really stop crypto buying but they have made it seem like they can. Centralized exchanges decided to work with governments for their own self-serving interests in order to set up shop, thus ultimately leading to intertwining governments back into the ecosystem. How decentralized is this system if centralized parties are becoming increasingly involved? No, they aren’t going to control 51% of the blockchain, but if the majority of available supply is controlled by centralized parties, does that not create somewhat of a centralized aspect? These institutions could freeze your assets and tell you how to spend your money. They have already tried in places like Canada.
In today's crypto community, as long as you are pumping crypto, you’ll be viewed in a positive manner, regardless of your past. For example, Jack Dorsey, the former CEO of one of the most censorship-prone companies (Twitter) is praised by big crypto personalities. If the decentralization narrative of Bitcoin is still alive, why would we want more Bitcoins in the hands of someone like that? I’m convinced the worst humans in history would be viewed in a positive light by some crypto enthusiasts as long as they tried to pump Bitcoin. Recently I’ve seen Bitcoin pumpers get really excited about the news that Coinbase took out a Bitcoin-backed loan at Goldman Sachs. People can’t wait for spot ETFs to start trading in the US so investment banks can purchase billions of dollars of Bitcoin. The FDIC is currently developing the framework for banks to potentially hold Bitcoin on their balance sheets. All of this excitement about financial institution involvement leads me to one question. Wtf am I missing? Are we not concerned about what could happen over time if Bitcoins trickle their way into the very institutions Bitcoin sought to fight?
Sure, the pump would be great and everyone who owns Bitcoin today would make crazy returns, but at what cost? Is the idea of decentralization and fighting banks still alive? Are we only in it for the money now? I understand that banks and governments were able to act recklessly because of their ability to print money and no matter what, they will not be able to change the 21 million coin supply. I am just curious and concerned about what happens down the line as more coins end up in the hands of these people. Would Satoshi be okay with banks and governments owning it?
In certain aspects, I’m sure Satoshi would be thrilled at what Bitcoin has accomplished. In certain countries where hyperinflation leads to extremes, citizens have been able to find refuge in Bitcoin. Even with Bitcoin crashes, it has been an asset that has been more stable than the extreme inflation rates. Countries that have adopted cryptocurrency as a viable form of currency have allowed citizens a chance to not be diluted into oblivion. If Satoshi came back and saw citizens being able to liberate themselves from these hyperinflation countries that are often run by the most corrupt governments, one couldn’t help but think he would be ecstatic.
As time goes by, everything changes. Bitcoin is no exception. There has never been an asset created like Bitcoin, and with this type of creation, much debate can be expected. Since 2009, many have attempted to bring Bitcoin to the masses, which has led to a change in the crypto landscape. Many would argue there are both good and bad aspects, with some aspects yet to be determined. One can’t help but wonder, with all of these changes, would Satoshi approve of how we carried on his creation?
While the markets of today stink, hopefully, there will come a day where prices aren’t something we have to worry about. For the sake of your financial freedom, I hope Bitcoin comes back in a strong way that unites the world in ways yet to be seen. Until then, stay strong plebs. Save this meme in your drafts for future use. You’re welcome
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