Why Bitcoin Exists

Why Bitcoin?

This article is an excerpt from the book “Why Bitcoin?” — a collection of 27 short essays exploring the “why” behind Bitcoin.

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This article is the first chapter from the book "Why Bitcoin?"

What is the Purpose of Bitcoin? 

Why did anyone bother to create Bitcoin? What problems were they trying to solve? 

If you are new to the whole idea of a digital asset involving the mysterious field of cryptography, these are some questions that probably come to your mind. 

Before you get caught up in asking if you can “get rich quick” from Bitcoin, you should be asking if it has a deeper purpose. 

Bitcoin was created to serve a very specific purpose. If it did not serve that purpose, it would not be worth anything. Fortunately, it does. And, it was carefully and meticulously engineered to serve it precisely. 

Bitcoin’s purpose is to provide reliable money that will serve all mankind — forever. That is a pretty lofty goal: serving all of mankind, forever! 

Was There Even a Problem in the First Place? 

Is our money unreliable? Does it really fail to serve all mankind? Are its days numbered? 

The sad fact is that the answer to all these questions is “Yes!” 

First, our money is unreliable: it loses its purchasing power through inflation. We also experience volatile economic cycles that destroy capital, jobs, wealth, and stability. 

Next, our money does not serve all mankind — many middlemen charge excessive fees to store and send our money. It is expensive to use internationally since converting it to other currencies is costly. Many people in the world lack any access to reliable banking. Our money system serves elites far better than it serves ordinary people. 

Finally, our money system is doomed to collapse. Currencies world-wide are rapidly losing purchasing power. In fact, throughout history, paper money decreed into existence by governments has failed every time that it has been implemented. 

And sadly, we cannot turn back the clock and go back to a time when gold was money. Gold is simply not secure from seizure, and it is far too slow, difficult and expensive to transport in a global economy. 

Bitcoin Fixes This

Bitcoin was created through an ingenious and unprecedented combination of technologies. It provides, for the first time ever, money that is reliable, that serves all mankind, and that will last forever. 

Nothing like this has ever existed before. 

Bitcoin is free from inflation — its supply will never exceed 21 million coins. Each coin is divisible into 100 million units called satoshis. These will be issued on a fixed, unalterable schedule — taking over 100 years. 

Bitcoin is for all mankind — there are no elites who can manipulate it. Unlike the currencies of our present money, nobody can create bitcoins effortlessly for themselves. 

Nobody can be prevented from using Bitcoin — it will not allow anybody to stop someone else from using it. 

Finally, Bitcoin is forever — its operation depends solely on the laws of physics and mathematics, and these laws will stay in effect — unaltered — for as long as the Universe exists. 

Bitcoin was not created so that some people could “get rich quick”. It was created to preserve the integrity of money — to make the most of your precious time, your energy, and your life. 

With Bitcoin you can keep what you have earned — and use it however, whenever, and wherever you desire. 

To you, Bitcoin is reliable money that can serve you for the rest of your life — and it offers you an escape from being the victim of an unjust, broken, dying, and failing monetary system.