Fourteen years ago, Satoshi Nakamoto explained why Bitcoin had value even though it was trading in cents. This was at a time when Bitcoin was still in its infancy, and its price was trading around a mere $0.07 at that time.
Pete Rizzo recently brought this historical statement to light, sharing a screenshot that captured the words of the pseudonymous BTC creator.
Satoshi’s statement goes thus: “Bitcoin has value because it is accepted as payment by many. You cou say that Bitcoin is ‘backed up’ by the price tags of merchants and currency exchangers- a price tag is a promise to exchange goods for a specified amount of currency.”
Bitcoin hit an all-time high of about $74,000 in March, driven by expectations of strong demand from U.S. exchange-traded funds (ETF).
Since Satoshi’s statement, Bitcoin’s use as a payment method has expanded dramatically.
In the early days of Bitcoin, perhaps from 2009 until around 2012, merchant adoption was almost nonexistent due to a lack of awareness and infrastructure. The first real-world 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 adopt cryptocurrencies, indicating a growing preference for digital currency payments as a viable alternative to traditional methods.
At the time of writing, BTC was up 1.30% in the last 24 hours to $67,846, per CoinMarketCap data.
This article was originally published on U.Today
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