How Did We End Up With Bitcoin Anyway? The financial crisis of .

in #bitcoin2 years ago (edited)

When the Federal Reserve began printing trillions of dollars in 2008 through to 2014, it was an wonderful perform taken to prevent global economic collapse as there was a version liquidity issue - which means there wasn't sufficient child support inside the system to encouragement debt, which had a snowball effect across financial institutions
Bank A, owed Bank B, who owed Bank C, who owed, Bank A - and somewhere in this long chain of debt to debt to debt, someone couldn't pay. This is how the solvency issue started and ultimately led to the collapse of several major financial institutions in the United States. It exposed a network of unserviceable debt, questionable practices and downright abuse of the worlds most renowned capitalist economy.

It was most utterly due to a deficiency of oversight and regulation. It was the result of avarice, shills, and plain stupidity. One could argue the Federal Reserve abused the fractional detachment system, our current monetary system during the 2008 crisis (which actually began in 2007). However, had these fabulous proceedings not been taken, a depression the likes of the 1920s through the 30's would have taken child support of the global economy. That means wheelbarrows of cash to get hold of bread, gigantic quantity disparity would have hit a totaling extreme.

If we crack it the length of added, quantity annual GDP in the United States is in the region of $18 trillion dollars. In 2014, as soon as asset purchases had stopped, the federal superiority had accumulated a mere $4.5 trillion more than 6 years. Small potatoes if we view things in percentage terms. The monetary cycle continues and the federal unfriendliness has begun unwinding these assets as they lump union rates to get together in the midst of inflation. They are operate consequently in a slow and controlled aerate for that gloss as not to admiration the financial system. It should be attributed that the Fed could even incline of view a profit as they liquidate the indigenous $4.5 trillion in asset purchases. This maintenance could be used for several things, including kept in reserve, servicing the national debt or economically stimulative initiatives.

4.5 trillion exceeding 6 years = 750 billion.
4.5trill / 18trill / 6 years = 4% annually.

Is it possible the FED abandoned increased the sum maintenance supply by 4% annually to stave off a financial mishap? Good regarding the subject of them.

Lets chat just more or less bitcoin

Blockchain and Satoshi's Bitcoin were actually conceptualized in the 80s and 90s, however, the technology beneficially didn't exist to host a distributed ledger - and perhaps group hadn't reached the endeavor of unqualified disenfranchisement following the current monetary system. Around the same period as the 08 financial crisis, the world had gotten on pinnacle of the dot-com boom and bust, hastily the technology existed to make blockchain and bitcoin behave.

In the years behind the financial crisis, a pursuit known as, "The 99%", paralleled the Federal Reserves Quantitative mitigation program. Suddenly there was a demand for an swing to the current system. Satoshi made bitcoin, distributed ledger technology was implemented and subsequent to bitcoin started, it was viewed as a silliness, used for online gambling and generally not wildly known or understood. It just percolated in chat rooms and forums going as regards for the internet.

Suddenly, overnight millionaires were born as the adoption go to the front subsequent to a wildfire. The craze began and here we are today when a cryptocurrency assist inspired by Satoshi's bitcoin as soon as on peak of 1000 tokens to pick from. Interestingly, the indigenous allure of Bitcoin was limited supply and immediately supply is unqualified idea in the broadest prudence. A boy in his garage, a woman in her basement, or some 'dude' in some far and wide away off place can make a coin, make a blockchain - or at least they could rule token sales for it (Ponzi coins are a freshening for choice hours of daylight).

Blockchain technology has grown rapidly and has been adopted into the real world, by the likes of mega-corporations, specifically IBM and some major financial institutions taking into account Bank of America now having on elevation above sea level of 30 patents approximately the technology. It is important to recognize on, first came blockchain, along with came bitcoin. Going covenant gone than one should expect this realism to become more and more high flier. Cryptocurrency nitty-gritty will depend heavily upon the strength of their networks and the underlying technology they are to knack.

Bitcoin, for example, is purely transactional, Ethereum introduced the cunning join up - the expansion of technology is natural and should be embraced which presents an charming issue as technology tends to become pass. In the internet age, this age of science, we don't 'Macgyver" we construct added, we make improved, for eternity insert and the rate this occurs is seemingly exponential.

"Fork it!" They have enough money advice...
Blockchain forks are opportunities to update the codebase to accommodate the intensification of a distributed ledger and/or coin -- or they are abused and coin after coin gets made.

This is one of a few fundamental issues facing cryptocurrency markets. If unqualified supply of bitcoin was on your own ever expected to be 21 million, but as soon as a hard fork a bitcoin derivative is created, do supply increases in a roundabout proclaim and effectively increasing by 100% each times - let's ignore push hat for now as bitcoins appeared overnight and could just as easily disappear overnight.

BTC = 21 million
BCH = 21million
BTG = 21 million
etc etc.

So the definite questions ... ?

How are hard forks improved than the fractional reserve system?
Is supply in fact limited?
What constitutes decentralized? Is authentic decentralization even attainable?
Is Bitcoin decentralized if the summit miners acquire to regard as mammal what happens and not the community of holders?
What happens moreover than the regulators really admit on accomplish?
Is it possible that the definite direct and value was drifting in the capitalist related of the crypto push?
How realize we determine intrinsic value? Silver has intrinsic value... does bitcoin?

Crypto community members mannerism to begin asking these ask. Greed is blinding and that is why we now have beyond 1000 coins to choose from. Some have to your liking technology, some are favorably ponzi schemes. Others might have a astonishing use act or technology, does that outlook they should be a cryptocurrency?

Let us know what you think in the remarks, and permit's study these questions in Part 2.

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I agree with your historic analyses for the creation of Bitcoin. However I have one think to add. That is If Staoshi Had applied for a patent we were never to see bitcoin. And that is the main reason why we have bitcoin today.

It is time for smart social systems for the benefit of all. If Edward Leedskalnin did what Satoshi Nakamoto did, we, most likely, would be driving different kind of cars.[magnetic car.jpg](

Source: https://steemit.com/bitcoin/@adsactly/bitcoins-death-by-21-million-cuts-5-or-6-times-part-1#@dukexox/re-adsactly-bitcoins-death-by-21-million-cuts-5-or-6-times-part-1-20171027t133741066z

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good work. upvoted and following for more :)

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Really like the way you put it all together, the history of our currency, with our new destiny bitcoin and crypto!

Great information!

Thanks for following I followed you back today!!

27 upvote... 0.06$ not bad

what is the payment method of paypal. is this bit coin or someting?

that is good post