The Banking crisis of 2008 was one of the key elements that fueled the invention of Bitcoin. The advent of Bitcoin exposed some of the pivotal flaws of the centralized banking systems which were largely ignored as there were no alternatives.
Central banks work on the principle of creating more debt to stimulate the economy, which is only possible because of the fiat monetary system. The fiat issued by the banks have no value of their own, neither are they backed by any asset or entity, which gave freedom to centralized authorities to print as much money as they want. This system is quite flawed as the debt in the market does not disappear by printing more money.
Simon Dixon, founder of BnkToTheFuture, a platform that has been pivotal to the growth of the cryptocurrency ecosystem as it helped early innovators like Kraken, Coinbase and ShapeShift to raise money way before ICOs and IEOs came into fashion. Dixon appeared on ‘Untold Stories’ podcast to talk about his motivation to create an alternative to the existing banking system.
Dixon was an investment banker and realized that the existing monetary system was a Ponzi scheme based on debts created by banks by printing more money out of thin air. But he was soon disappointed to realize it was almost impossible for them to create any alternate financial system as banks had the authority to issue currency. Read More...