NYU Professor Refutes Bitcoin and Lehman Brothers Flourishing Connection as a Result of 2008 Financial Crisis

A recent Market Watch post introduced another player who seems to argue that Bitcoin did not stem from the collapse of the financial market in 2008. Business Professor at New York University, David Yermack believes that Bitcoin was not a result of the financial crisis, but an ongoing effort that has been addressing the need for a decentralized, digital currency.

Yermack argued that e-commerce is a growing business and is preferred because of the existence of some “trusted third parties”. While he does support that the use of cryptocurrencies has “worked well enough for most transactions”, they still lack a “trust-based model”.

He further made the case that Satoshi Nakamoto’s launch of Bitcoin was simply “good timing”, which “could only have helped attract users.” Yermack’s viewpoint is also shared by Nouriel Roubini, who’s known for having predicted the 2008 financial crisis. Both view the existence of cryptocurrencies as “caring about their money, not the protocol or the technology”.

To find a stance against the NYU Professor, Market Watch noted a New York writer, Maria Bustillos, who wrote in her piece, “The Bitcoin Boom” that Nakamoto’s motives were clear and have been correlated with the 2008 financial crisis.

Whether or not the existence of cryptocurrencies is supported simply by proper timing is one thing, but since its introduction, many investors have either earned or lost a great deal (depending on their sellout point and entrance within the market).

It is definitely the most-debated topic of 2018, as the technology supporting the digital assets has attracted several established corporations, with many from Wall Street starting to consider its likes. Most importantly, the growth Bitcoin has experienced thus far is incomparable to the longer journeys of Amazon, who’s stock price hit the thousands only 10 to 15 years later.

Another viewpoint suggests that the existence of cryptocurrencies can be a combination of the failing economy of 2008 and good timing. This comes from Sarit Markovich, who serves as a professor at Kellogg School of Management. In particular, his stance is that the need for a decentralized system would have surely arose after the financial crisis adding that, “if we didn’t have bitcoin, it’s likely something else […]would have emerged”.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide