in a email series among the pseudonymous creator of bitcoin, 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 warned against 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 him and Nakamoto, dating from 2009 to 2011. The email revealed detailed information about the early stages of bitcoin's development, dating 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-news/bitcoin-bulls-on-the-charge-crypto-platform-forecasts-63k-surge-by-march/” target=”_blank” rel=”noopener nofollow”>bitcoin. In response, Nakamoto had asked the Finnish computer scientist to provide detailed frequently asked questions (FAQs), outlining the intricacies, functionality, and potential use cases of bitcoin.
Addressing why people should use bitcoin in the FAQ, Malmi emphasized bitcoin-news/bitcoin-investor-sentiment-suggest-btc-rally-is-far-from-over/” target=”_blank” rel=”noopener nofollow”>The profitability of bitcoin, stating that the cryptocurrency is likely to increase in value as its economy gains more prominence. The software developer had urged people to “consider bitcoin as an investment and start running a node” immediately.
bitcoin slightly above the $51K level today. Chart: TradingView.com
Commenting on the statement, Nakamoto expressed concern in categorizing bitcoin-news/us-bitcoin-investor-trading-volume-rises-stage-set-for-another-massive-rally/” target=”_blank” rel=”noopener nofollow”>bitcoin as an investment. However, he acknowledged that people can draw their own conclusions.
“It makes me uncomfortable to say explicitly that they consider it an investment. It is dangerous to say that and you should delete that point,” Nakamoto said.
What really is bitcoin?
During your email correspondence, Nakamoto endorsed Malmi's definition of bitcoin, as a peer-to-peer (P2P) network that facilitates seamless money transfers over the Internet, free of a central authority or third-party control. Notably, the bitcoin-news/bitcoin-creator-satoshi-nakamoto/” target=”_blank” rel=”noopener nofollow”>bitcoin creator coined the term “P2P cryptocurrency” for the first time, considering it an interesting and appropriate 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? “Sounds good,” Nakamoto told Malmi.
Additionally, the bitcoin founder approved another FAQ put together by Malmi that provided concise yet insightful descriptions of bitcoin. The Finnish computer scientist explained the process of creating new Bitcoinsand highlighted the fundamental value of cryptocurrency.
According to Malmi, The value of bitcoin It is based on its capabilities to facilitate 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 The security of bitcoinhighlighting 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
