This is why Bitcoin came to life
Silvergate and most recently Silicon Valley Bank (SVB) are two major banks that went under this week. Many in the Bitcoin (BTC) community are currently highlighting the Bitcoin White Paper, as it was created in 2008 in response to the collapse of Lehman Brothers.
The banking drama began earlier this year when crypto bank Silvergate ran into financial problems. News broke this week that all operations would cease and the bank would be liquidated. The collapse of Silicon Valley Bank is the most recent and one of the hardest hit in the global financial system.
Yesterday you read in crypto news that Robert Kiyosaki, the author of the book “Rich Dad, Poor Dad” believes that it will be a while before the third bank goes under.
Some blame SVB’s bankruptcy on rising interest rates in the US. The Federal Reserve raised its interest rate to more than 4.5% last year, the highest rate since 2007. In January, inflation in the US was 6.4%.
Bitcoin is the answer to the financial crisis
In fact, about six weeks after the dramatic collapse of Lehman Brothers, America’s fourth-largest investment bank at the time, Satoshi Nakamoto published the famous white paper that paved the way for the rise of the Bitcoin network. Trust in the economy and banks was very low at the time, and Bitcoin became the first form of money to replace the element of trust with mathematics.
Ryan Selkis, founder and CEO of Messari, said Here’s what Bitcoin has to say about problems with 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 new friends.”
“Explorer. Devoted travel specialist. Web expert. Organizer. Social media geek. Coffee enthusiast. Extreme troublemaker. Food trailblazer. Total bacon buff.”