What is the relation between belief and technology in the context of cryptocurrencies? What is more important for success? Read our take on the topic.
The very beginning
If you asked me how is it possible that cryptocurrencies have been invented then I would tell you that the internet is the reason why it happened. The Internet is a major scientific achievement that disrupted many industries. For example, newspapers and journals have been issued by big publishers. Individuals had no public medium that could be used for publishing their articles or spreading their opinions. The Internet demonopolized the press industry. Nowadays, everybody who has the internet can publish articles and opinions. The power of big issues has weakened. Research in the information technology industry continued and many inventions in cryptography allowed us to use internet banking. It was very significant for cryptocurrencies since people began to trust digital numbers and believed that they have value. It was not necessary to hold banknotes in hands to be able to pay. Internet banking can be considered as the beginning of the demonopolization of currencies and it was probably the unintentional beginning of cryptocurrencies.
Satoshi Nakamoto put together a few technologies and launched Bitcoin. Bitcoin is a public decentralized network that is in the hands of the whole community. Nakamoto’s intention was to create independent digital money. In the beginning, the belief was very important to adopt the public network. The technology was also important but if we simplified it a bit, it was sufficient that it worked seamlessly. People did not face the issues with scalability and when Alice sent BTC to Bob then the transaction was received within minutes and settled within an hour. It was fantastically fast in comparison with bank transactions at those times.
People often believe more in dreams and wishes than reality. People from the crypto punk community started to believe that they have invented their own money. There is a strong factor that started to support the belief. The rising price of BTC coins. People believe that they will be rich if Bitcoin succeeds. It is a nice dream and some people are already rich thanks to Bitcoin. Other people organically come and want to join the club.