Global Finance and Digital Assets in a World Without Bitcoin

The potential decades of delay in the cryptocurrency industry without Bitcoin Financial innovation sparked by Bitcoin and its side effects [Unblock Media] Since its inception in 2009, Bitcoin has had a significant impact on the global financial system. However, what if Satoshi Nakamoto's whitepaper had never been published? How would the world be different? Even before Bitcoin, there were digital currency projects like DigiCash (1990), e-gold (1996), and Bit Gold (2005). However, they failed to gain widespread adoption primarily due to centralization and regulatory risks. For example, e-gold was indicted by the U.S. Department of Justice for illegal money transfers and money laundering, leading to its shutdown in 2007. These centralized structures had vulnerabilities that made them easily exposed to governmental regulations. In contrast, Bitcoin introduced a new paradigm of decentralization. Particularly, the Proof of Work (PoW) model achieved both decentralization and security. By having participants solve complex mathematical puzzles to verify transactions and create blocks, the network protected itself from manipulation and centralized control. This technological innovation laid the foundation for the development of many other cryptocurrencies like Ethereum, Litecoin, and Ripple. Without Bitcoin, the cryptocurrency industry might have been delayed for decades. If Bitcoin had never existed, investment funds might have flowed more quickly into other advanced industries like fintech, artificial intelligence, renewable energy, and biotechnology. There would also have been fewer cases of tax evasion, fraud, and criminal funding through cryptocurrencies. For instance, in 2024 alone, $2.2 billion was stolen through hacks on cryptocurrency platforms. The side effects of decentralized finance remain unresolved. Nevertheless, the changes brought by Bitcoin are largely positive. Bitcoin offered practical solutions to issues that traditional financial systems failed to address, such as reducing remittance costs, improving transaction speeds, and enhancing financial inclusion. For example, in 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender. However, by 2024, only about 8% of the population were actually using Bitcoin, and cryptocurrencies accounted for just 1% of all remittances. Due to economic burdens and low adoption rates, El Salvador withdrew Bitcoin's status as legal tender in early 2025. Conversely, in Kenya, Bitcoin offered a new means of financial access to those without traditional banking system access, yielding some positive effects. While we can imagine a world without Bitcoin, it is difficult to definitively conclude the outcomes. Another form of digital currency might have emerged, or blockchain innovation might have been delayed for decades. What is certain is that Bitcoin was a catalyst for financial innovation, and its influence will continue to permeate the technology and financial industries in the future.