U.Today – Historian Pete Rizzo has shared a statement believed to have been made by Bitcoin's pseudonymous creator, Satoshi Nakamoto, dated June 22, 2010. In this statement, Satoshi laid the groundwork for understanding Bitcoin's intrinsic value.
Fourteen years ago, Satoshi Nakamoto explained why Bitcoin had value despite being traded in cents. This was at a time when Bitcoin was still in its infancy and its price was trading at around $0.07 at the time.
Pete Rizzo recently brought this historic statement to light, sharing a screenshot that captured the words of the pseudonymous BTC creator.
Satoshi's statement is as follows: “Bitcoin has value because it is accepted as payment by many. You could say that bitcoin is 'backed' by the prices of merchants and exchanges: a price is a promise to exchange goods for a specific amount of currency.”
Satoshi's statement resonates 14 years later
Fourteen years later, Satoshi Nakamoto’s statement about the value of Bitcoin still rings true. Bitcoin has risen in value from just $0.07 to trading in the tens of thousands of dollars.
Bitcoin hit an all-time high of around $74,000 in March, driven by expectations of strong demand for U.S. exchange-traded funds (ETFs).
Since Satoshi's declaration, the use of Bitcoin as a payment method has expanded dramatically.
In the early days of Bitcoin, perhaps from 2009 to around 2012, merchant adoption was almost non-existent due to a lack of knowledge and infrastructure. The first real Bitcoin transaction occurred in 2010, when a BTC holder purchased two pizzas for 10,000 BTC, which is now recognized as Bitcoin Pizza Day.
This narrative has grown as merchants continue to embrace cryptocurrencies, indicating a growing preference for digital currency payments as a viable alternative to traditional methods.
At the time of writing, BTC is up 1.30% over the past 24 hours to $67,846, according to data from CoinMarketCap.
This article was originally published on U.Today
