Why was Bitcoin created?
Level: Crypto Baby
Hello World!
I am sure you’ve heard of the word “Bitcoin” this year almost as much as you’ve heard COVID19 (Ok fine maybe 1/3 of that).
However, one thing is for certain, Bitcoin is certainly getting global attention making headlines on a daily basis.
Maybe you’re asking yourself, “What is all this hype about, what is Bitcoin and why is it important?”
I am glad you asked! Let me break down the short story for you. (More in-depth later)
Early to Mid 2000s: The large U.S. investment banks, ratings agencies, lending and insurance companies were very wreck-less in their lending out of mortgages to homebuyers creating WAY TOO MUCH debt and monetizing (securitizing) that debt in the markets not aware of the consequences or just didn’t care.
We basically went from throwing money at technology (.com bubble) to a real estate bubble.
Mid 2007 to March 2009: The great financial crisis (GFC) was in full swing as millions of Americans lost their homes, Bear Stearns was bought back J.P. Morgan for pennies (yes basically pennies) and the 4th largest investment bank Lehman Brothers was used as the scapegoat and went bankrupt. These millions of US homeowners had too much debt with too little or no income and had to foreclose on their homes because they could not pay their mortgage.
The securitization of the US housing market through derivatives with no lending standards caused a catalyst of global financial problems. This was only papered over by printing money and low interest rates benefiting the financial institutions and the ones at the top of the wealth stack to keep the system going that caused the collapse.
2009: Here comes Satoshi Nakamoto seeing this problem, had enough of the top down financial system that made the exchange of currency and payments across the world very hard and costly.
So, he went to work and created Bitcoin: programmable, immutable, scarce, fungible, store of value, true money that cannot be duplicated. (There is debate the original intent has been changed. We’ll discuss that later.)
2009 — Present: Bitcoin has gone through several booms and busts, an enormous amount of criticism, the naysayers and unbelievers to a world reckoning solution to the current financial and economic system to lower the financial rails to everyone globally and hopefully create a decentralized and independent world where all people can thrive financially.
We have all long way to go, but Subscribe to www.breakincrypto.com and share to learn, grow and build your story in this new world…
The CRYPTOVERSE. It’s time to #BREAKINCRYPTO
Blessings,
