The Reinvention of Money: Bitcoin and Its Untold Story

CHAPTER #1

###Depression###

// Illusion: The Wisdom and Madness of Crowds //

Everything was going to start with a shock.

Subprime Mortgage Crisis

The subprime mortgage crisis is a home loan system with a fixed interest rate or the opportunity to find a home with terms of up to 20–30 years.

It gave people the opportunity to own a house the easy way… But was it going to be so?

The Reasons Behind It

  • Non-payment of loans granted
  • Withdrawing money from banks
  • Slowdown and stagnation in capital movements
  • Liquidity crisis
  • Loss of financial institutions
  • Panic!

If you want to learn it in more detail, you should watch:

Men, it has been well said, thinks in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one. -Charles Mackay

Was it all over, or was it just beginning?

The Collapse of Lehman Brothers

Lehman Brothers filed for bankruptcy on September 15, 2008. Hundreds of employees, mostly dressed in business suits, left the bank’s offices one by one with boxes in their hands. It was a sad reminder that nothing is forever — even in the richness of the financial and investment world.

The company’s shares fell first 77%, then 97%. The result? Bankruptcy.

If you want to learn it in more detail, you should watch:

To sum,

  • Banking systems were cracking
  • Employment losses all over the world
  • M I S E R Y

###Game Changer###

While these events were happening, Bitcoin’s footsteps were beginning to be heard.

We were witnessing a historical moment…

On August 18, 2008, Nicknamed Satoshi Nakamoto created the bitcoin.org website.

On October 31, 2008, Bitcoin’s whitepaper was published.

On January 3, 2009, Genesis Block was born. The first block of the Bitcoin blockchain.

-Additional information, the first block of all cryptocurrencies is called Genesis.-

Of course, studies were carried out before producing a payment system without a third party such as Bitcoin. But they just couldn’t get it right. In fact, the philosophy behind Bitcoin dates back to the 80s. We will talk about them in the following chapters.

This movement would be the first beginning of a significant change.

Against the World!

When the date showed January 3, 2009, the Times Newspaper had the following headline: Chancellor Alistair Darling on the brink of second bailout for banks.

Satoshi Nakamoto has hidden a compelling message for Genesis Block. The 1630th line was just like this:

1630 const char * pszTimestamp = “The Times 03 / January / 2009 Chancellor on the brink of the second bailout for banks”;

It is unknown exactly why the message was placed in the Genesis Block, and various claims are put forward on this issue.

A New Age Begins

The first bitcoin transfer in history was made between Hal Finney and Nakamoto. Finney was one of the members of the Cypherpunk movement. So it was not accidental that he was the person receiving the transfer. (We will discuss this movement next.)

On January 10, 2009…

So the possibility of generating coins today with a few cents of compute time may be quite a good bet, with a payoff of something like 100 million to 1! Even if the odds of Bitcoin succeeding to this degree are slim, are they really 100 million to one against? Something to think about… — Hal Finney

It wouldn’t have been so well predicted, right?

Additionally, by clicking this link, you can find the e-mails between Nakamoto and Finney.

In the next section, we will discuss the emergence philosophy of Bitcoin.

Blockchain Writer.