Financial Chaos VS Bitcoin
Financial Chaos
In the early 2000s, the world’s economy looked really strong. Stock markets were skyrocketing, and most people felt good about money. But below the surface hid a terrible problem that was about to cause a huge financial crisis.
This wasn’t just a regular banking dilemma; it was about to be one of the worst financial crises since the 1930s.
The trouble started in the United States with the housing market. People were encouraged to buy homes, and it was easy to get a loan from the bank. The Federal Reserve, which controls and prints the money in the U.S., made interest rates really low. This meant people could borrow money cheaply, leading to lots of people buying houses.
But there was a catch.
Banks started giving out loans to people who were not able to pay them back. More loans equated to bigger the commission checks for the bankers who essentially became sales reps for really shitty loans. These risky loans were called subprime mortgages.
Banks didn’t stop there. They found a loop in the system that allowed them to fuck people with predatory loans without getting into trouble. They took these risky loans and mixed them into complicated financial products called mortgage-backed securities (MBS) and collateralized debt obligations (CDOs). They sold these to investors all over the world.
At first, these looked like great investments because house prices were going up. But this was a ticking time bomb. When you get money for free it becomes very easy to inflate all the prices synthetically. But what happens when there is no more free money?
Around 2006, things started to go wrong. House prices stopped going up, people stopped buying real estate they couldn’t afford, and the housing market began to fall. This meant people who took out loans could not pay them back, and many began losing their homes.
Banks and investors who had bought these risky MBS products lost a lot of money. Trillions were instantly gone and generational wealth evaporated in weeks.
The biggest shock came when Lehman Brothers, a huge legacy bank, went bankrupt in September 2008. This was a big deal because it showed how bad the situation was. What was once considered a “too big to fail” bank had gone under overnight. Banks got scared and stopped lending money to each other. This made the problem even bigger, affecting the whole world’s economy.
Governments and central banks, like the Federal Reserve in the U.S., had to step in quickly to “solve” the mess they created. They printed billions of dollars bailing out the over leveraged banks and tried to fix the chaos by cutting interest rates and putting more money into the system. The only way to keep the scam going was to keep scamming.
After this crisis, people started to think differently about banks and money. It was clear that there were no rules for banks to make sure this kind of crisis didn’t happen again. The rich got richer by fucking people over without consequences, so why wouldn’t they do it again?
The popular sentiment that banks were above the law became popularized and validated. The crisis showed that the world’s financial system was really centralized, manipulated, bias and fragile. Something had to be done…
In the middle of the financial chaos, where trust in traditional banking was at an all-time low, Bitcoin was born.
It wasn’t just another form of currency; it was a radical reimagining of what money could be. A new form of money that was isolated from the theft of fiat. Unbound by the control of banks or governments and backed by immutable energy, Bitcoin was a groundbreaking innovation. A new digital currency driven by complex mathematics, cryptography and transparency.
Bitcoin operated entirely through the internet and was fueled by its users. For the first time ever, every transaction that took place with a financial instrument became immutably recorded on a public database known as the blockchain, ensuring that no single entity could lie about what they were doing. This was a stark contrast to the traditional financial system, where transactions could be obscured and currencies manipulated by greedy actors that had produced no real value yet seemed to have all the money.
This was the first time in history that transparency and sovereignty aligned.
Bitcoin emerged not just as a new technology but as a symbol of monetary independence…