The Story of Lehman Brothers Bankruptcy and Bitcoin's Beginnings as a Response to the Financial Crisis

NYU Professor Believes Bitcoin Was not a Response to the Financial Crisis

Bitcoin was created several years ago after the financial crisis that started with the bankruptcy of Lehman Brothers. With the creation of the famous virtual currency, a new financial ecosystem grew up and continued to expand.

However, there is an expert that believes that Bitcoin (BTC) was not created with the intention to fight against the current economic system.

David Yermack, professor of finance and business transformation at New York University says that Bitcoin appeared in 2009, but there were several attempts to create a digital currency such as BTC in the past.

Bitcoin works powered by a decentralized ledger known as blockchain. It is decentralized because there is no centralized entity controlling the supply or the environment. Instead, Bitcoin works with a wide web of nodes that protect the network and confirm that the transactions are valid.

Mr. Yermack commented about the current commerce on the internet:

“Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the system works well enough for most transactions it still suffers from the inherent weaknesses of the trust based model.”

Indeed, the fellow NYU professor and bitcoin skeptic Nouriel Roubini agrees with Yermack. He says that Bitcoin could be an experiment and that developers and supporters only care about money rather than in the protocol or the technology.

Nonetheless, there is some evidence that suggest that it was not launched at that moment because of ‘good timing.’ Maria Bustillos explained that Satoshi Nakamoto, Bitcoin’s anonymous creator, was motivated by the crisis. Indeed, he left a message on the blockchain on the genesis block on January 3, 2009.

The genesis block reads as follows:

Bitcoin supporters believe that the famous virtual currency could work as the new gold. Furthermore, they believe that Ethereum is the blockchain used by supply chains. At the moment, there are over 2,000 different cryptocurrencies that can be used in many different platforms.

At the moment, there are several libertarians and individuals that support Bitcoin as a way to escape from the current financial system. Of course, there are people that believe that is a scam but several institutions and companies are investing important sums of money on it.

According to Sarit Markovich, a clinical associate professor of strategy at the Kellogg School of Management at Northwestern University believes that Bitcoin may have been launched just on time.

“The quest to be decentralized can be tied to a financial crisis,” he says. “But it we didn’t have bitcoin it’s likely something else to challenge centralized payment systems would have emerged.”

Get Free Email Updates!

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

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Compound Protocol to Roll Out Decentralized Oracles Dubbed ‘Open Price Feed'

Compound, one of the most popular defi protocol, is all set to introduce open price feeds for lending on its platform using a decentralized...

$2 Million Slippage & Surge in Ether Price on Uniswap Helps Net $40k in Profit

A Uniswap user was able to profit $40,000 thanks to $2 million of slippage and the price of Ether surging north of 15%. It all...

Irish Govt to Target Cryptocurrencies Use in Money Laundering And Terror Financing

The Irish government aims to implement stricter and more stringent laws to curb money laundering and terrorism financing in its financial system, including digital...

Interactive Brokers to Settle $38 Million in Penalties for Violating AML Procedures

Interactive Brokers LLC, a U.S based brokerage that skyrocketed between 2013 and 2018, has agreed to settle a total of $38 million with the...

Ethereum Gas Price Hasn’t Been This High Since its Launch

The price of Ether is back to making its way to $400 level as it hovers around $391 in the green with just $840...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today