In 2009, Bitcoin’s creator Satoshi Nakamoto made a bold statement regarding the future of banking systems. He predicted an inventible major financial crisis and proposed an alternative, a solution to save governments from what was coming- a decentralized financial system. In a quote posted on February 2009, Satoshi’s forum explains in detail the essence of Bitcoin and why people’s trust in banks has no positive outcomes. A renowned economist, Max Keiser, warned of a potential bankruptcy in the US banking system.
Satoshi’s statement about fiat and banks
Satoshi explains several historical examples in the statement, particularly in fiat, where banks have betrayed people’s trust. The statement explained that after being trusted with people’s cash, these banks lend out a large percentage of the money, with nothing being reserved for emergencies. Satoshi added that people must blindly trust these institutions with their privacy and money. In addition, banks charge fees, making it impossible for micropayments.
Nakamoto warned of the instability of traditional banks and fiat currencies, stating that centralization in these systems left them vulnerable to manipulation. He argued that decentralization would be necessary to protect against such manipulation and proposed using cryptocurrency as a way to do so. These suggestions caused shockwaves throughout the finance industry – particularly regarding his opinion on blockchain technology being used as a ledger system for secure transactions.
The 2008 US crisis in the housing market, was accompanied by another banking crisis in Cyprus five years later. At that time, many uninsured deposits in two major Cypriot banks were confiscated and used as part of the $10 billion bailout of the local banking system by the EU and IMF.
“There’s more to come….”-Satoshi Nakamoto.
It’s hard to rule out a connection between the ongoing bank crisis with the current Bitcoin price pump. Three United States’ largest banks are insolvent: Silvergate, Silicon Valley Bank, and Signature Bank. In the wake of this news, Bitcoin has hit a $28,000 high, adding more than 40% in March this year alone.
Another forum message posted by Satoshi’s forum in 2011 clearly stated that he didn’t believe in banks. He might not have foreseen the current baking crisis in the US, but he most definitely warned us about it. Ultimately, Satoshi Nakamoto’s warnings should be taken seriously if we are looking to avoid further economic instability or turbulence in the future. By taking control of their finances now, individuals can safeguard themselves against potential global financial crises due to untrustworthy banking systems.
Max Keiser’s punchline
According to Max Keiser, the government is taking down these banks while protecting their deposits to pave the way for the Federal Reserve to issue CBDC. In his Twitter account, Max has not seized to warn users that CBDC will give the government full control over where and how they spend their money. Further, the so-called “FedCoin” will have an expiration date preventing users from saving it.
Image Source: Adobe Stock
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
