Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Twitter user @anilsaidso has shared a screenshot of a statement made by the mysterious Bitcoin creator known as Satoshi Nakamoto. It is about the main issue with banks and conventional currencies.
Satoshi's statement about fiat and banks
This was a quote from Satoshi's forum message that he posted on Feb. 11, 2009. It explains the goal of creating Bitcoin and why using banks demands too much trust with no guaranteed positive outcome. Among other things, banks require that people remain certain their currency will not be debased.
Statement released by Satoshi Nakamoto pic.twitter.com/d2VTQWondA
— Anil ⚡ (@anilsaidso) March 19, 2023
Satoshi (a person or a group of people, as some researchers believe) stated, in particular, that there are many examples in the history of fiat money when central banks, which issue fiat, betrayed people's trust. They require people to trust them to hold their money and transfer it in an electronic way, but then "they lend it out in waves of credit bubbles with barely a fraction in reserve."
He added that "we have to trust them with our privacy, trust them not to let identity thieves drain our accounts." Another problem with banks is that they charge such big fees that micropayments are impossible to make.
The crisis in the housing market that took place in the U.S. in 2008 was followed by the banking crisis in Cyprus in 2013. Back then, a large portion of uninsured deposits in two major Cypriot banks were confiscated as part of a $10 billion bailout of the local banking system by the EU and the IMF. That breach in trust of banks was the event that helped Bitcoin's price surge high enough for the first time to make it mainstream.
Satoshi hints at further bank crises in the world
Many economists are likening the current situation to failing banks and rising Bitcoin back in 2013. Now that three large U.S. banks — Silvergate, Silicon Valley Bank and Signature Bank — have become insolvent, Bitcoin, in the wake of this news and several other factors, has managed to finally reclaim the $28,000 high, adding nearly 40% in March this year.
Thus, the forum message of Satoshi posted in 2011 clearly suggests that he did not believe in banks. He did not, perhaps, foresee the current issue with U.S. banks, but he certainly may have assumed that bank crises would emerge on a regular basis with the faulty banking system.
Max Keiser on current U.S. banks' bankruptcies
Max Keiser believes that these banks are being taken down (with the government protecting their deposits) in order to allow the Federal Reserve to issue its CBDC (the so-called "FedCoin"). Keiser also reminds his Twitter audience that CBDC will allow the government to gain full control of how and where you spend money.
Besides, CBDC will have an expiration date so people will be unable to save those coins. Apparently, Keiser is hinting at the excellence of Bitcoin against CBCDs here.
Remember, the banks going under are purposefully being destroyed and the deposits protected to make room for CBDC’s to be issued by the FED. CBDC’s allow the government to control how & where you spend money — and will come with an expiration date so that you can’t save them.
— Max Keiser, sr. bitcoin advisor to Pres. Bukele (@maxkeiser) March 20, 2023
Arman Shirinyan
Alex Dovbnya
