Bitcoin inventor Satoshi in emails: “Fiat currencies violate people’s trust”

Recently released emails from Satoshi Nakamoto from May 2009 show that the inventor of bitcoin (BTC) has long been concerned about the devaluation of fiat currencies by central banks.

Satoshi over the dollar and other fiat currencies

The series of emails released by early bitcoin contributor Martti Malmi. He says he didn’t feel comfortable sharing his private correspondence with Satoshi. But he decides to do so after serving as a witness in a lawsuit in the United Kingdom against self-proclaimed BTC creator Craig Wright.

In an email to Malmi, Satoshi highlights the major flaw of government-issued currencies such as the US dollar.

“The fundamental problem with conventional currency is all the trust required to make it work. The central bank must be trusted not to devalue the currency, but the history of fiat currencies is full of violations of that trust.

You must be able to trust banks to hold our money and transfer it electronically. But they lend it out in waves of credit bubbles with barely a fraction in reserve. We must trust them with our privacy, trust that they will not allow cybercriminals to empty our accounts.”

Decrease in dollars

Data from the US Bureau of Labor Statistics shows that in 2021 the purchasing power of the US dollar has declined by approximately 20% since 2010, after taking inflation into account.

Satoshi also says that throughout history, people have always used assets that have a finite supply as money. He says people’s perceptions determine the value of a currency more than its use.

“Historically, people have accepted scarce goods as money. If necessary, using what is available, such as shells or stones. Each has a core of usability that helped start the process. But the monetary value turns out to be much more than just the functional value.

Most of its value comes from the value others give it. Gold is beautiful, non-corrosive and easily malleable, but most of its value clearly doesn’t come from that. Brass is shiny and similar in color. The vast majority of gold sits unused in vaults, owned by governments that care nothing for its beauty.

Until now, there has been no scarce commodity that can be traded over a communication channel without a third party. If there is a desire to take a form of money that can be traded over the internet without a TTP (trusted third party), this is now possible.”

Bitcoin price

At the time of writing, Bitcoin is trading at $51,636, an increase of approximately 1,127,931% since the first Bitcoin to fiat transaction in 2009, which was made by Malmi himself.