Crypto Economic Investigator | What is the story of the mysterious cryptocurrency and how did Bitcoin appear?
The scenes we just showed you were in 2008 in the United States. A severe financial crisis is the second worst economic crisis in the history, America, after the great depression in the thirties. It then moved from the US to other countries causing an unprecedented global economic and financial chaos all over the world.
The chief reason for that crisis was the greedy financial institutions and major banks that facilitated over-borrowing without control. Nevertheless, a mysterious and interesting player was going to appear at that time and would change this whole global financial system later in the future.
What player? What Changes? I'M Ashraf Ibrahim - and this is the ‘Crypto Economic Informant’, a new series of short focused episodes to be guide keys to the world of digital currencies, the huge opportunities it offers to investors, individuals, entities and companies, in addition to its inherent dangers and how they are likely Going to change the entire global financial system in the future, I would like to highlight an issue of significance.
Not all Arab countries allow digital currencies exchanging so far. For example, most of the Gulf countries allow it while other countries such as Iraq, Egypt and Algeria do not allow it anyway. So please pay attention to this matter of necessity, let's get to it On August 18, 2008.
The same year of the crisis during this theatrical chaos, a domain or website, appeared quietly on the Internet. With the address Bitcoin.org, It was registered by an unknown person with an identity protected through the WhoisGuard service.
No one knows who he/she is nor what this site is exactly for. This was the case all along the first 72 days, then, on October 31, a crypto mailing list appeared on metzdowd.com announced by a person or group of people.
No one knows under the pseudonym `` Satoshi Nakamoto'' they acclaimed that they had worked on a new, fully functional electronic Peer-to-Peer monetary system. Through this system, a currency called Bitcoin will be traded, / exchanged among individuals directly and privately.
Third parties are excluded, as well as other central monitoring authority and with the announcement a file containing all the details was published called the “White Paper”, which later became the Bitcoin Constitution.
This was the first appearance of the mysterious character of Satoshi Nakamoto on the Internet and the first time the world knew about that new monetary system, as well as the entire process of currency production exchanging and dealing through the `` white paper''.
A 12-year-old written guide that revolutionized the global financial system, a revolution that is still going on and its effect is increasing non-stop. The posts that were published under the name, “Satoshi Nakamoto” in 2008 and 2009, explicitly stated that the reason for creating this digital monetary system was mainly to remove external intermediaries, who had to be present to make money.
Transfers Intermediaries such as banks, credit card companies and others are the system lords, who make huge profits annually from transaction fees, unlike transactions in Bitcoin, which will be zero fees.
. If we take a look at the net revenues of Visa company last year, for example, in 2021 revenues exceeded 24 billion dollars, an increase of 10 % more than 2020 Last August. The net revenues of the banking and investment services giant JPMorgan exceeded 121 billion dollars in 12 months.
Another reason for bitcoin's innovation was the problems caused by traditional currencies, exchanging that are being controlled by central banks that are controlling the wealth of nations in favor of a limited class as a result.
Consequently, chaos or crises that occur in the monetary system due to financial institutions, mis-conduct, is borne almost entirely by consumers and taxpayers, as happened in 2008. Central banks can also waste individuals’ savings if they decide to print money in order to pay off their local debts.
For example., This in the long term leads to an increase in money circulation. Thus, the inflation rate rises, consequently squandering the value of individuals’ savings by reducing their purchasing power.
. The inevitable end of this series is the deterioration of their living standards as a result. On the contrary, in the Bitcoin monetary system, as a possible future alternative to traditional currencies, such problems and risks do not exist, as there is neither third party in the transactions nor a central authority that possesses tools through which individuals may be impoverished.
If those intermediaries mis-conduct. This was a quick talk about the emergence of Bitcoin as the first and most famous cryptocurrency in the world. The next episode, God willing, will be a simplified explanation of “Blockchain” what it is and how it is working as a basis for the cryptocurrency system.
. This episode is sponsored by the `` rain'' app, which is the first platform licensed by the Central Bank of Bahrain for digital currencies exchanging Last but not least, don’t forget to subscribe to the channel activate the bell to cope up with the new crucial series.
See you bye,