When will Bitcoin take over the world?

The principal creator of one of the most brilliant innovations of our times, Bitcoin — a new form of electronic money — has now had to reveal himself. His name is Craig Wright, an Australian academic, and he’s now had to forsake the pseudonym he’s successfully used for several years — Satoshi Nakamoto.

Unlike ‘ordinary’ electronic money which governments, banks and credit cards use, Bitcoin money can identify every single unit which means that it is capable of being trusted. Normally, when sending or receiving electronic money, we can never be sure whether the other party is totally trustworthy, or whether its account might not be hacked into.

Bitcoin not only identifies everyone of its units but also spreads the information among all those computer or smartphone users who happen to be transacting for something on the Internet at that moment. This might be thousands of people. The problem is that spreading that information among so many machines anywhere in the world at the same time means that the system easily overloads and only six or seven transactions per second can be achieved.

It also means that an enormous quantity of electricity is consumed in those computers and smartphones when taking on board so much ledger information. Bitcoin is, in fact, a very expensive way of moving electronic money around even though it is supposed to be cheap.

This is why, I believe, Craig Wright was annoyed at being revealed. He doesn’t want to do so until he and his nerdy research colleagues have solved the limitation problem. If successful the whole world would then be at their feet and they could ask for anything they wanted.

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