In a recent post marking the 16th anniversary of Bitcoin’s whitepaper, economist Fred Krueger shared his views on why he believes Bitcoin has succeeded where others have struggled.
Bitcoin's Pure Code Structure
Krueger noted that Bitcoin stands out because of the simplicity and autonomy of its design. “Unlike Solana, Cardano, ETH, etc., there is no group of ‘founders’ who update the project,” he said. While updates are made, Bitcoin does not have a formal governing body or a set of ‘elders’ who make decisions, unlike many new blockchain platforms. This decentralized structure, he argued, contributes to Bitcoin’s flexibility and neutrality.
A Fair Launch
Krueger noted that Bitcoin’s launch was unprecedented in its fairness. “Everyone was able to mine on the first day. Satoshi never claimed tokens,” he said, comparing this to the pre-mining and initial token distributions seen in many subsequent projects. According to Krueger, this egalitarian start set a standard that no other cryptocurrency has ever reached.
Uncensored Transactions
Krueger noted that one of Bitcoin’s most important features is its resistance to censorship. “Nothing can stop Bitcoin transactions in any country in the world,” he said. While transactions can be tracked and flagged, and exit routes can sometimes be restricted, Krueger noted that Bitcoin transactions are largely unstoppable. This quality reinforces Bitcoin’s value as a borderless and open financial system.
Simplicity at Its Core
Despite the technical nature of the blockchain, Krueger believes that Bitcoin’s fundamental simplicity is key to its success. “It may seem complicated to a beginner, but the general idea of sending BTC between parties is pretty simple and hasn’t changed in 16 years,” he explained. With blocks mined every 10 minutes and halvings occurring every four years, the consistency of the Bitcoin system showcases a simple approach that fits into a small codebase and a short 9-page whitepaper.
First Move Advantage
Krueger also pointed to the principle of first-mover advantage, citing the book Positioning to explain it: “The first to find product-market fit keeps it.”
*This is not investment advice.