How Bitcoin (BTC) has failed to Live Up to Satoshi Nakamoto’s Original Intent

What began ten years ago as an innovative currency option, has now become a hot asset class that attracts more capital daily. The primary purpose of Bitcoin (BTC) was to act as an alternative payment option.

A payment system that will be operated anonymously via peer-to-peer in a bid to eliminate the third party. But after a decade the Satoshi Nakamoto proposed solution (the pseudonym affiliated with the individual who created Bitcoin), is not what it was meant to offer as reported by Morgan Stanley researchers.

Bitcoin (BTC) is Better Classified as an Institutional Investment Class and Not Digital Cash

According to Morgan Stanley researchers in a 65-page report that highlighted the metamorphosis of Bitcoin (BTC), the U.S. banking giant found that the world’s largest digital asset by market cap is better categorized as an institutional investment class rather than as digital cash. It isn’t a replacement payment system as proposed when it was launched a decade ago. Which was what early cryptographers originally intended.

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The Rapid Evolution of Bitcoin (BTC)

Technology headwinds like scalability and security, have halted the ability of Bitcoin to operate as a sustainable replacement payment system as it was originally intended. Hence, the digital token and its ilk have failed to be widely adopted. Many observers have concerns that the digital apparatus surrounding virtual assets can’t safeguard their currency holdings.

Morgan Stanley MS, reports that the surge in the ,capital allocation to virtual token funds is proof that investors see the technology as an opportunity to make profit. They went on to cite the $6.9 billion increase in digital asset funds under management since the beginning of 2016 as a reason for arriving at this conclusion.

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Bitcoin (BTC) Price Today – BTC / USD

Name Price24H (%)
Bitcoin (BTC)
$5,606.30
-1.28%

It is paramount to note that any hope that Bitcoin will achieve its original intent has passed on. In fact, there have been questions revolving around how to improve the payment system and how to raise funds as reported by Morgan Stanley. The lack of a formal regulatory structure remains an issue in the space. This again was cited by the banking giant as an impediment. We can only wait and see what the future holds for the digital asset.

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