In a series of emails between pseudonymous Bitcoin creator, Satoshi Nakamoto and Finnish computer scientist and software developer, Martti Malmi, Nakamoto debunks the notion of Bitcoin being a form of investment. The Bitcoin founder has cautioned against the identification, emphasizing the risks associated with categorizing the cryptocurrency as an investment vehicle.
Bitcoin Is Not An Investment
On Friday, February 23, Malmi published 120 pages of email correspondence between himself and Nakamoto, dating back from 2009 to 2011. The email revealed detailed information on Bitcoin’s early developmental stages, stretching back to the time before the word “cryptocurrency” gained widespread acceptance.
In their email exchange, Malmi extended an offer to contribute his technical expertise to help support the growth and development of Bitcoin. In response, Nakamoto had requested the Finish computer scientist to provide detailed Frequently Asked Questions (FAQs), describing Bitcoin’s intricacies, functionality, and potential use cases.
Addressing why people should use Bitcoin in the FAQ, Malmi emphasized Bitcoin’s profitability, stating that the cryptocurrency is likely to increase in value as its economy gains more prominence. The software developer had urged individuals to “consider Bitcoin an investment and start running a node,” immediately.
Bitcoin slightly above the $51K level today. Chart: TradingView.com
Commenting on the statement, Nakamoto expressed unease in categorizing Bitcoin as an investment. However he acknowledged that people could draw their own conclusions.
“I’m uncomfortable with explicitly saying consider it an investment. That’s a dangerous thing to say and you should delete that bullet point,” Nakamoto stated.
What Bitcoin Really Is
During their email correspondence, Nakamoto endorsed Malmi’s definition of Bitcoin, as a peer-to-peer (P2P) network facilitating seamless money transfers over the Internet, free from central authority or third-party control. Notably, the Bitcoin creator coined the term “The P2P cryptocurrency” for the first time, deeming it an interesting and fitting slogan that describes the digital asset effectively.
“Someone came up with the word cryptocurrency, maybe it’s a word we should use when describing Bitcoin, do you like it? It sounds good,” Nakamoto said to Malmi.
Additionally, the Bitcoin founder approved other FAQs crafted by Malmi which provided concise yet insightful descriptions of Bitcoin. The Finnish computer scientist explained the creation process of new Bitcoins, and highlighted the cryptocurrency’s foundational value.
According to Malmi, Bitcoin’s value is based on its capabilities for facilitating exchanges similar to traditional currencies. He also revealed that new Bitcoins were generated when a network node successfully solves a mathematical problem on the blockchain.
Furthermore, he addressed Bitcoin’s security, stressing the importance of users creating adequate backups of their coin keys and employing strong passwords to protect their digital assets against loss or theft.
Featured image from Getty Images, chart from TradingView
Source: https://bitcoinist.com/bitcoin-creator-satoshi-nakamoto-said-bitcoin-should-not-be-called-an-investment-so-what-is-it/