Who Created Bitcoin and why?

At the time of this Blog, the creator of bitcoin is our very own modern day Shakespeare mystery, as the only thing we know about this person or persons is their pseudonym Satoshi Nakamoto. The true identity of this person or group of people has remained anonymous.

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Satoshi Nakamoto created bitcoin and the bitcoin network using blockchain technology. And blockchain is simply a method of record keeping using math and computer science, as opposed to accountants and bookkeepers.

What most people don’t know is, the concept of blockchain was actually outlined back in 1991 and Satoshi was the first one to apply blockchain use just under 20 years later in 2009 with bitcoin.

So why did Satoshi create bitcoin? In the following section, we will point out the problems with financial institutions and our current monetary system that prompted Satoshi to create bitcoin.

Bitcoin was created as a way for people to store and send value around the world, anytime, anywhere, at virtually no cost, without using a financial business or fiat currency. In our current financial system, bank accounts and credit cards are luxuries most people around the world don’t qualify for, don’t have access to, or simply can’t afford.

What is Fiat money?

Well, let’s talk about what all this “money” in our bank accounts really represent.

Money is a bit of an abstract word, and its true definition is a medium of exchange in the form of coins and banknotes, in addition to being assets, property, and resources owned by someone or something.

The type of money that is stored in traditional bank accounts is called fiat.
And the basic definition of fiat is this:

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Fiat is a pronouncement, arbitrary decree, or a command given by a person or group of people that have absolute authority to enforce it.

So when you combine the word fiat, with the word money:

The definition of fiat money is a legal form of money issued and backed by the government… and “backed by the government” means that the government made an arbitrary decree that fiat money, or the US dollar, is to be used in our economy as a medium exchange for goods and services.