Bitcoin (BTC) was a response to the 2008 global recession. It introduced a new way to transact without depending on the trust of third parties, such as banks, particularly failing banks that were nevertheless bailed out by the government at the expense of the public.
“The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust,” Satoshi Nakamoto wrote in 2009.
Bitcoin’s genesis block sums up the intent with the following embedded message:
“The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.”
But while Bitcoin keeps mining blocks unfazed, and its gold-like properties have attracted investors seeking “digital gold,” its current 75% comedown from $69,000 highs in November 2021 demonstrates that its not immune to global economic forces.
Simultaneously, the entire crypto market lost $2.25 trillion in the same period, hinting at large-scale demand destruction in the industry.
Bitcoin’s crash appeared