This is exactly why Bitcoin came into being
Two big banks lost ground this week, both Silvergate and the most recent being Silicon Valley Bank (SVB). Many in the Bitcoin (BTC) community are currently highlighting the Bitcoin white paper, as it was created in response to the collapse of Lehman Brothers in 2008.
The banking drama basically started at the beginning of this year when crypto bank Silvergate ran into financial troubles. This week, it was reported that all operations would be halted and the bank would go into liquidation. The demise of the Silicon Valley Bank is the latest and one of the most devastating for the global financial system.
Just yesterday I read in cryptocurrency news that Robert Kiyosaki, author of Rich Dad, Poor Dad, thinks it is only a matter of time before a third bank goes bust.
Some blame SVB’s bankruptcy on rising interest rates in the United States. The Federal Reserve raised the interest rate to more than 4.5% last year, the highest rate since 2007. In January, inflation in the United States was 6.4%.
Bitcoin in response to the financial crisis
In fact, about six weeks after the dramatic collapse of Lehman Brothers – the fourth largest investment bank in the US at the time – Satoshi Nakamoto released the famous white paper that paved the way for the emergence of the Bitcoin network. Confidence in the economy and banking was at an all-time low at the time, and Bitcoin became the first form of money to replace the element of trust with mathematics.
Ryan Selkes, Founder and CEO, Messari, He said The following is about Bitcoin in relation to the problems in the traditional financial system:
“There is a whole generation of builders who only read about Lehman and the financial crisis and scoffed at Bitcoin. Now their eyes are wide open. Welcome to new friends.”
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