Today marks the day when Bitcoin was welcomed into the world. Ten years ago, Satoshi Nakamoto published the white paper on Bitcoin which is known by almost everyone in the crypto space. However, today also marks a decade since the 2008 financial crisis.
Looking back, the timing of the release for the Bitcoin white paper couldn’t have been better. As questioned by CoinDesk, “did Satoshi Nakamoto at the time fully grasp the historical significance and unique opportunity presented in autumn 2008 to kickstart a new financial system and motivate people to use a new currency?”
Let’s take a walk down memory lane and look back on these events and how both have changed since the biggest financial shock since the Great Depression.
Ten years ago, the financial crisis reached its climax with the collapse of Lehman Brothers on the 15th September – this was six weeks before Satoshi Nakamoto published the white paper.
Over time and during the post-crisis economic recovery, some might have forgotten how important the crisis actually was. In fact, Lehman’s bankruptcy led to such a panic that famed Wall Street experts felt that they even had to withdraw as much cash as possible for fear that cash machines would stop working.
After the news breaking of the disaster, several initiatives were made for the sole purpose of preventing another financial crisis. New regulations and capital requirements were introduced including the Dodd-Frank Act in the US and the Basel III banking standard was introduced.
From our vantage point today in 2018 we can see that financial organisations like Lehman are not the only things which have been reduced to ashes. Several regulatory restrictions on financial organisations introduced after the crisis have been or are currently fading away and social movements like Occupy Wall Street have faded into nothing more than a memory.
Will there be another financial crisis?
An economist called Hyman Minsky came up with a theory which showed the reoccurring financial crisis and that they are a big feature of the current financial system.
Basically, Minksy came up with a theory which means that it is only a matter of time before another financial crisis happens.
The theory was dismissed by mainstream economists which have left Minksy to be a shunned player in the economics space. Nevertheless, this theory has seen kind treatment and there aren’t many people today which would argue his point.
What are your thoughts? Let us know what you think down below in the comments!