When in 1991 the origin of Blockchain was traced, it was mentioned in a research paper by Dr. Stuart Haber and Dr. W. Scott Stornetta “How to Time-Stamp a Digital Document”. The term blockchain can be defined as a decentralised, cryptic database on which digital transactions take place. In other words Blockchain enables all parties in a transaction to be able to view the ledger of a document, so everything is transparent to all involved. Multiple Distributors, Vendors, Banking systems. No longer would there be kept individual ledgers which were prone to error and theft. All parties involved would see all transactions made and to whom. This would have helped create a trusted and genuine environment for business owners, clients and the systems involved.
Satoshi Nakamoto published a white-paper in 2008, titled “Bitcoin: A Peer to Peer Electronic Cash System”. This in short created that system. The opened ledger was the network. From wallet owners (who had a light version) to miners. The ledger was checked multiple times to ensure a transaction was correct by node workers.
In 2009 the first transaction on the first blockchain occurred. It was more secured than the banking systems, truthful and honest, an improvement of the system in a sense. More importantly decentralised. Meaning no one has control over the system. As time moved on, there were some Soft Forks (new Crypto with some changed rules like Etheruem) and Soft Forks (minor changes to better the system in place.)
Since the arrival of bitcoin, every so often a boy running through the town cried “The bubble has burst. Crypto is over.” Hunny, it’s been 14 years already. It has been in the making since 1991. But let’s be honest. There is a glaring problem staring us in the face.
Blockchain runs on a type of push and pull system. Meaning to combat inflation, most crypto has a limited supply. Whether Proof of Stake, Proof of Work. Not taking into consideration of Stable coins. Meaning the price goes up when there is less supply and more demand. When there is more supply, demand goes down. This created the bare flaw. The pump and dump strategy.
Whales or people who own a large percentage of the supply currently available. would just continue being whales unable to spend or use their crypto to their liking due to fact of not much use of crypto in the everyday market. If a whale chooses to convert their crypto into fiat currency. They are dumping a lot of tokens back into the ecosystem. Being that it is peer to peer and an open market. This will drive prices down in an instant. Thus whales are stuck in crypto purgatory have hugh sums of crypto valuing millions, unable to utilize it’s benefits without causing an uproar among the thousands involved already. If a Blue Whale decides to dump a lot at a time. It might crash the ecosystem temporarily.
This is not the only temptation. With the insurgurce of Defi farming and ultitly NFTs. the temptation is becoming greater to pump and dump. Defi’s that offer 10X returns to early investors for liquidity pools run the huge risk. Of course everyone wants more ROI on investment. Since the last Luna fiasco most algorithm stable coins have not recovered at all. The little boys are singing about the crash. In truth, in my strong opinion. The Blockchain was always going to be implemented. When? I cannot say. Society was always moving in a cashless direction. With the use of Debit cards and Bank cards. Now with the improvement of Blockchain, those things will be easily traced by the public key they left behind. Your assets will be barer than a stripper on Saturday night. You know what’s that good for… Taxes. Who knows.
Since 1991 they were looking into it creating it. Satoshi Nakamoto just implemented it earlier than they thought. Probably to give the 99% a chance to rise to become a 1%. Who knew we would be stuck in crypto purgatory. Seeing that $1,000,000 getting a 40% APY. no big drops in the market by then. then boom before you know it. It’s $100,000,000. Or even more. Selling your interest makes the market crash down to $1. Now what. What would have taken you out of the poor house. Have only given you enough to last a couple of years.
In truth of the matter crypto is here to stay. Don’t mind the little boys crying “wolf”. More utility of crypto must be accepted into society. Meaning instead of changing any to fiat currency. The token itself must be accepted as a form of tender in exchange for product or service. This may limit the amount of tokens on the market. To control how much is available on the market. The person that solves this riddle “Good Luck”. To limit pump and Dump and scam IPOs. All crypto derived from one Blockchain. All are tagged to the first Blockchain crypto, which is Bitcoin. While there is a lot of cleaning up to do. I hope I can use my surplus crypto to pay for a pizza or a house without needing it to change to fiat first. I can’t if there is a lot of resistance to crypto in the first place due to one major reason of the pump and dump.
While banks allowing it, is a good sign. Without control of the supply available on the market and what you are able to spend without upsetting the ecosystem. Pump and Dump will always be a super villain in the crypto world. There will always be people who cry “it’s crashed”. People left in a more vulnerable state than before. I do hope with the amount of millionaires that it is creating. It will not break and crash society and the very delicate ecosystem we are apart in.
