The reports from the Lehman Brothers Holdings Inc. that the company was bankrupt was the beginning of a new era of banking skepticism. Many people lost faith in the mainstream financial institutions as it became clear that they were not safe custodians of people’s hard-earned assets.
Efforts started being directed to independent solutions to assets accounting and holding, and that is where the concept of decentralization, digitalization, transparency, and privacy came into the limelight. From November 2008, months after the devastating economic turmoil, the Bitcoin Cryptocurrency, and the Blockchain technology started marking rounds in the media outlets and for the first time in decades, there was a new fintech approach for the world.
The Beginning of the Bitcoin
On the 1st of November 2018, Satoshi Nakamoto released a whitepaper of what was then referred to as a “new electronic cash system” on a full “peer to peer” platform without a trusted third party. The famous white paper drew a lot of attention and started a discussion of whether this was a new technology that the world needed to avert disasters such as the 2008 crisis. To this day, the discussion is still ongoing but much has since changed.
One of the key pillars of the new Bitcoin was the elimination of third parties (banks and financial institutions) that back then were seemed to have failed the public. Satoshi assured of a decentralized and self-governing system that would have a full detachment from the mainstream system but still have security aspects through the cryptography features that underpin the Crypto proof of trust.
Satoshi’s Intent was to Offer a Banking Alternative Platform
In the events culminating to the financial crisis of 2008, Banks had been taking funds from depositors and investing in credit investments, without their consents, mainly in the property markets. Therefore, when the asset bubble busted, the borrowers could not repay and the huge bad debts forced many banks to file for bankruptcy, affecting people’s wealth in the process.
Bitcoin came along as a trusted lender where depositors/investors had full access to their wallets and they could track the wallets at all times. This form of new trust meant that the Central/Federal/Reserve Banks were no longer in control as they had failed in reining on unethical practices from the banks.
The Bitcoin Journey Has Been Phenomenal for almost a Decade
Satoshi actualized his dream on the 3rd of January 2009 by mining the first 50 BTC. This heralded the beginning of Bitcoin, followed by Litecoin in 2011, Ethereum in 2015 and hundreds of other Cryptocurrencies.
At a collective market capitalization of over $200 billion, the digital assets are reshaping the world economy and offering a new dimension of financial services that are spearheading the adoption of the emerging Blockchain technology. This is mainly possible through the ICOs, interest-earning tokens, and the proposed ETFs that may be instrumental in capital formation for Clockchain startups.
Time Will Dictate the Future
Satoshi intended that the Bitcoin would be a currency, but it has since turned out to be more of a digital asset along with all the other Cryptocurrencies and tokens.
Further, the price of Bitcoin, that determines the performance of the Crypto markets, has been volatile in its journey from $1 in 2010 to $20,000+ and now the $6,444-. In this regard, time and other developments will dictate the path of the Cryptocurrencies in the future.