Moctar BouraimaIt has been exactly 15 years since the collapse of Lehman Brothers, marking the start of a financial crisis that reshaped the global economy. This dramatic event had a profound impact on people's confidence in the traditional financial system.
Even more, it has led to new financial solutions being taken into account ever more seriously. It was in fact, by observing the flaws in the financial system that we began to doubt and look for new alternatives like Bitcoin.
Some believe that Bitcoin would not have enjoyed such success today if the financial crisis had not shaken the world so brutally.
However, a nuance is necessary; This is not to say that the Lehman Brothers crisis is at the origin of the creation of Bitcoin. For decades, there have been attempts and experiments that preceded it. It is rather a matter of saying that the crisis has raised awareness of the importance of having alternatives.
Lehman Brothers collapses, dragging the global financial system into chaos
Fifteen years ago, Lehman Brothers was a venerable and grandiose Wall Street institution. However, the bank had accumulated massive amounts of debt tied to risky mortgage-backed securities, which then triggered the " subprime crisis"
When the real estate market began to collapse, Lehman faced insurmountable losses for the bank. Its bankruptcy sent shock waves through the financial system, leading to a credit freeze and a spiraling fall in global stock markets.
Following this incident, governments around the world were forced to take emergency financial measures. They wanted at all costs to stabilize the financial system through " rescue plan » banking and new economic stimulus programs. Despite a massive injection of liquidity, the crisis could not be completely contained with millions of people losing their jobs, homes or savings.
Bitcoin as an alternative to the traditional financial system
It is very important to know that it is in this precise context that Bitcoin appeared with the publication in October 2008 of the Bitcoin white paper called "A Peer-to-Peer Electronic Cash System".
Some time after the publication of the white paper, founder Satoshi Nakamoto included in the genesis block of Bitcoin, the date of January 03, 2009 of the newspaper The Times which had the title " Chancellor on brink of second bailout for Banks.”
With this inscription, Satoshi Nakamoto indirectly indicated a certain link (which can obviously be debated) with the current financial system and the creation of Bitcoin.
Thus, this new digital currency appeared as a promising alternative to the financial system traditional. Due to its decentralized nature, this currency is designed to be safe from manipulation by central banks and financial institutions. It also offers greater security and transparency than fiat currencies. Even more, while fiat currencies can be printed according to the demands of governments, bitcoin is a deflationary currency with a ceiling limited to 21 million units.
The loss of confidence in banks and the rise of Bitcoin
The financial crisis of 2008 should not be reduced when we analyze the growing popularity that Bitcoin has enjoyed since its creation. If in the past banks and states saw Bitcoin as a threat to be ousted, the irony is that it is the banks today that seek to own them.
For many supporters of Bitcoin, it is then an alternative to remedying the failures of the traditional financial system. Even more, populations previously excluded from the monetary system were able to see in Bitcoin a tremendous opportunity for financial inclusion.
During the last 15 years, Bitcoin has experienced explosive growth. It has grown from an experimental idea to a thriving and successful digital currency.
What we can learn from the Lehman Brother crisis
The fall of Lehman Brother showed us that the traditional financial system is vulnerable to crises and manipulation. It was also a good time to think about the emergence of Bitcoin and an opportunity to think about the future of the financial system.
When Lehman Brothers imploded, it was shock and incomprehension that struck all financial institutions as well as the population. It was customary to say "ton big to fail" (Editor's note: too big to fall) to underline the fact that it was impossible in the mind to conceive the fall of such a financial juggernaut. However, it did take place and the bank failures have not stopped since.
Recently, the magisterial bankruptcy of the Silicon Valley Bank and the domino effect it caused reminded us that no bank is strong enough to withstand a crash if it were to occur.
It is then time to think more deeply about Bitcoin, its potential and how it could resolve the failures of the current financial system.
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