The Reason Why Bitcoin Was Invented

It has been documented that the reason Satoshi Nakamoto invented the Bitcoin was because of the trouble the banking institutions have gotten into throughout the ages.

The Central Bank was invented as the lender of last resort to mitigate runs on banks and guarantee each other’s deposits through a central bank. Banks throughout history have gotten into trouble but as we experienced in 2008, the entire banking system got in sufficient trouble to almost cause the collapse of the financial system. Governments had to step in to prevent a catastrophic collapse similar to the Great Depression of the 1930’s.

In summary, these are the problems Bitcoin was meant to solve

– Banks charge excessive fees
– Corruption that almost caused the total collapse of the world banking system in 2008
– Centralized power means only a few control the world’s wealth
– Current system lends itself to counterfeiting and fraud

For those that prefer to view the reason why Botcoin was invented, watch this short video that explains the problems and the Bitcoin solution.