Exactly 10 years ago on 3rd of January 2009, Bitcoin’s Genesis Block was mined at 18:15:05 UTC. The significance of this event is the existence of the whole Blockchain and Crypto industry that is currently valued at $130,000,000,000.
Blockchain technology has transformed industries such as finance, insurance, banking, etc. by creating efficiency, trust, reliability, and adaptability in operations. This is the reason why BitMex is congratulating Satoshi Nakomoto on the front page of “Britain’s most trusted national newspaper”-The Times on the 10th anniversary of his idea actualization.
BTC Token Turns 10
It is important to take note of the fact that this anniversary commemorates mining of the first Bitcoin Token. On the other hand, “Bitcoin: A Peer-to-Peer Electronic Cash System” titled whitepaper that introduced the concept of a decentralized Blockchain network was marked on 31st October 2018. This whitepaper served to introduce an alternative system to the mainstream financial system comprising of banks, investment institutions, and financial firms on one hand, and the Federal Reserve System on the other in the USA. Its limits were borderless as it also served to offer a new system of financial services in all countries of the world underpinned by transparency, decentralization, independence, privacy, borderless, and efficiency characteristics.
The 2008/09 Financial Crisis Was The Impetus For BTC Mining
The Ad on Times Newspaper reads – “Thanks, Satoshi. We owe you one. Happy 10th Birthday, Bitcoin.”
This statement evokes a flashback into one of the darkest financial tragedies that the world ought to learn from and find alternative means such as Cryptocurrencies and Blockchain to avert the effects of a recurrence.
At that time, Lehman Brothers Holdings Inc. filed for bankruptcy on September 15, 2008. The reasons for invoking Chapter 11 bankruptcy protection law was precipitated by a massive exodus of clients fearing a collapse after reports showed that the firm had been involved in financing subprime mortgages and other illiquid assets. This affected the credit ratings of the firm and it could no longer afford to operate. Unfortunately, the same story was replicated across the financial industry across and the world suffered from the US crisis depending on the level of integration of economies with the US’s.
In fact, on 3rd of January 10 years ago, Alistair Darling, the UK Chancellor of the Exchequer at the time was calling planning a second bailout for distressed banks.
Learning From Past Mistakes
In order to learn from the 2008/09 crisis, it is important to note that the breach of trust by the centralized financial system under the watch of the Feds and other central banks precipitated the hazard. Banks were taking deposits and reinvesting the money in credit products that are risky such as overpriced real estate investments. Further, historical data shows that centralized financial government institutions have flouted ethical rules and caused similar problems in the past.
Hence, it is important to learn from the mistakes of the past and create a lasting solution that guarantees trust through decentralization, transparency, and efficiency. This can be achieved through Distributed Ledger Technology that Bitcoin is the pioneer and continues to set the pace for altcoins to follow.