Bitcoin Whitepaper Was Launched While World Finantial Crisis
The original Bitcoin whitepaper was published just as the world was reeling from the financial crisis of 2008 by “Satoshi Nakamoto”. There has always been some speculation that the crash was a motivation for this project.
In the decade since, Bitcoin has far exceeded expectations and has outperformed every single national currency. It has even outperformed gold and other precious metals. However, the utility that this technology provides, and the industry that is growing up around, is even more important than the value.
There are now thousands of cryptocurrencies and connected platforms. While mass adoption may seem far off, this technology offers us an alternative to the financial systems. Anyway this have failed us in the past.
Cryptocurrency has already proven to be an extremely useful asset in times of financial crisis or bank runs. Bitcoin’s first major explosion in value came during a massive bank run. In 2013, the government in Cyprus announced that they would beginto take money out of citizen’s bank accounts to pay for a bank bailout.
In those initial weeks, bank accounts in Cyprus were at risk. So the price of Bitcoin jumped from around $20 to over $100.
Crypto for Economy
More recently, cryptocurrency has provided a safe haven for countries like Venezuela. There the economy is in the midst of a collapse, and the national currency is facing hyperinflation. As a result, cryptocurrency adoption in the region has been faster than almost anywhere else in the world. They will be running their new national currency on a petro-backed blockchain.
Cryptocurrency will become more relevant as the fiat currencies continue to collapse. (As we have seen in states as Venezuela). Governments will attempt to co-opt the technology and implement their own blockchain currencies.
Nonetheless, governments will in the long-term likely struggle to shut down crypto and will be forced to compete in the market for a change.
Ten years on from the last financial crash and with the enormous growth of the new crypto-economy. this is important to remember that blockchain technology beyond enriching speculators and creating new businesses. But does it have the capability of greatly reducing corruption and human error in the financial industry? Let me know what you think in the comments bellow!