The climax of the global economic crisis celebrates its sad 10th anniversary on 15 September. The major US bank Lehman Brothers collapsed. Reason enough to think up an alternative to the existing currency system. The Bitcoin story: Lehman Brothers, Satoshi Nakamoto and the Bitcoin White Paper.
The Bitcoin story is related to the financial world as the Bitcoin exchange rate is linked to the US dollar. Somehow they can’t get away from each other, although one is strictly speaking the alternative to the other. We take today, 15.09.2018, as an opportunity to tell the story of how Bitcoin was counted into the world. For the 10th anniversary of the banking crisis here is a (slightly modified)
Excerpt from the Bitcoin Profit Bible
Two Bitcoin profit pizzas worth millions. The Great Depression. The global economic crisis is in full swing – the real estate bubble in the United States has burst and other countries are following suit. But not the Bitcoin profit. On 15 September, the events reached their premature peak when the major US bank Lehman Brothers collapsed. As a result, the financial crisis forces states to save the existence of banks such as UBS or Commerzbank with large sums of money.
The indebtedness of many countries rose to dizzying heights. Companies such as General Motors filed for bankruptcy, and the American International Group insurance company was forced into emergency state ownership. In October of this year, the International Monetary Fund estimated the decline in the value of mortgages at a total of 580 billion US dollars.
The Bitcoin profit by Satoshi Nakamoto
The following month, on November 1, 2008, an encrypted email from a certain Satoshi Nakamoto made the rounds in a mailing list that was to make a big Bitcoin profit: I’ve been working on a new electronic money system that is completely peer-to-peer and without a trusted third party. The paper is available on http://www.bitcoin.org/bitcoin.pdf .
In addition to the main features of his planned electronic monetary system, he added a note explaining the monetary system. Here is the translated original text:
Exposé: „A pure peer-to-peer version of electronic money would allow online payments to be sent directly from one party to another without the need for a financial institution to mediate. Digital signatures can already partially achieve this, but the greatest advantages are still lost: in order to prevent double spending, trust in a third party is still necessary. We propose a solution to the double-spending problem by using a peer-to-peer network. The network timestamps transactions by inserting them into a continuous chain of hash-based proof of work. This chain then represents an immutable protocol.
The longest chain not only serves as proof of the order in which the processes took place, but also proves that the greatest amount of computer processing power was applied to it. As long as the majority of computing power is controlled by nodes that do not cooperate to attack the network, they will generate the longest chain and depend on attackers. The network itself needs only a minimal structure. Messages are delivered according to the best-effort principle and nodes can leave and re-enter the network at will by accepting the longest proof-of-work chain as proof of what happened during their absence – Satoshi Nakamoto