The Banking crisis of 2008 was among the important elements that fueled the invention of Bitcoin. The advent of Bitcoin exposed a number of the pivotal flaws of the centralized banking systems that have been largely ignored as there have been no alternatives.
Central banks focus on the principle of fabricating more debt to stimulate the economy, that is only possible due to the fiat monetary system. The fiat issued by no value is had by the banks of these own, neither are they backed by any entity or asset, which gave freedom to centralized authorities to print just as much money because they want. This technique is fairly flawed because the debt on the market will not disappear by printing additional money.
Simon Dixon, founder of BnkToTheFuture, a platform that is pivotal to the growth of the cryptocurrency ecosystem since it helped early innovators like Kraken, Coinbase and ShapeShift to improve money way before ICOs and IEOs arrived to fashion. Dixon appeared on ‘Untold Stories’ podcast to speak about his motivation to generate an alternative solution to the prevailing bank operating system.
Dixon was an investment banker and realized that the prevailing monetary system was a Ponzi scheme predicated on debts developed by banks by printing additional money out of nothing. But he was soon disappointed to understand it was extremely difficult to allow them to create any alternate economic climate as banks had the authority to issue currency. This is enough time when he found Bitcoin and was surprised that this alternative system can exist. he said,
“Whenever we discovered Bitcoin we saw a remedy to the truth that a kind of money could exist outside the traditional bank operating system and really give people ways to transact without actually being mixed up in fractional reserve system.”
Trust may be the key to the acceptance of money
The key feature your money can buy to be accepted may be the trust, the existing fiat system is working because people trust the federal government to back the worthiness of the currency they’re using. Similarly, Bitcoin is alive and thriving even with 10 years due to the fact people have rely upon the decentralized working style of the digital currency.
Venezuela is really a shining example to illustrate the difference between your fiat monetary system and Bitcoin. The united states was counted on the list of prosperous ones before late 90s up, however the hyperinflation which hit the national country in 2016 crippled it within 3-4 years. Now Bitcoin is helping them never to just reunite on the feet but additionally avoid sanctions from america.
With a set market cap no centralized authority could control the supply, Bitcoin is self-sustaining so when long as folks have trust in the machine it generally does not require any permission from any authority to stay operational. Governments can ban the usage of Bitcoin however, not the Bitcoin itself.