2008 Economic crisis
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Bank’s giving out bad loans, despite knowing that
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Regulated credit agencies colluding
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Gov bailing out the banks with taxpayer money
Need of bitcoin
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Losers of the 2018 financial crisis: users/customers
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Not only did they not get any interest on their savings
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Could not withdraw their funds for weeks
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Need for alternative digital cash
Origin of bitcoin
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Built as a trustless, decentralized, p2p payment network.
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Trustless: No one party controls or authorizes the transactions Everyone on the network validates all transactions.
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Decentralized:
Benefits:
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Censorship resistance
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Example: protesters in Iraq, Afhganistant, Myanmmar
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Non-custodial
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Based on public key cryptography. Only you have custody of your funds.
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Cross-border payments
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Low transaction costs due to no central party or counter-party risk