In the early 2000s, the global economy appeared robust. Stocks were rising, and most people felt positive about their finances. However, a significant issue lurked beneath the surface, which triggered a massive financial crisis.

This wasn't just an ordinary banking problem; it was on the verge of becoming one of the worst financial crises since the 1930s.

The trouble began in the United States with the housing market. People were encouraged to buy homes, and obtaining loans from the bank was easy. The Federal Reserve, responsible for U.S. money, kept interest rates very low, allowing people to borrow money inexpensively, leading to a surge in home purchases.

But here's what happened.

Banks started giving loans to people who couldn't genuinely afford to repay them. The more loans they issued, the more money bankers made in commissions. The bankers acted like salespeople, but the loans they were selling were not good. These risky loans were called subprime mortgages.

Banks didn't stop there. They discovered a loophole in the system, allowing them to take advantage of people with predatory loans without facing consequences. They bundled these risky loans into complex financial products called mortgage-backed securities (MBS) and collateralized debt obligations (CDOs), selling them to investors worldwide.

Initially, these investments seemed promising as house prices were rising. However, it was like a ticking time bomb. When obtaining money is easy, it's straightforward to artificially inflate prices. But what happens when the free money runs out?

Around 2006, things took a downturn. House prices stopped rising, people ceased buying houses they couldn't afford, and the housing market began to collapse. This meant those who took out loans couldn't repay them, leading to many losing their homes.

Banks and investors who had purchased these risky MBS products lost a considerable amount of money. Trillions vanished instantly, and wealth that should have endured for generations disappeared within weeks.

The most significant shock occurred when Lehman Brothers, a major longstanding bank, went bankrupt in September 2008. This was a critical moment, revealing the severity of the situation. A bank once deemed "too big to fail" collapsed overnight. Other banks grew apprehensive, halting lending to each other and exacerbating the problem, affecting the entire global economy.

Governments and central banks, like the Federal Reserve in the U.S., had to act swiftly to "fix" the mess they caused. They printed billions of dollars to bail out the heavily indebted banks and attempted to address the chaos through significant changes.

After the crisis, people began viewing banks and money differently. It became evident that there were no rules in place to prevent such a crisis from recurring. The wealthy became richer by exploiting others without consequences, prompting concerns about a potential recurrence.

The notion that banks were above the law became widely accepted and confirmed. The crisis exposed the world's financial system as highly controlled, manipulated, biased, and fragile. Change was imperative.

Amid the financial chaos, when trust in traditional banking hit rock bottom, Bitcoin emerged in 2008. It wasn't just another form of currency; it was a radical reimagining of what money could be. Bitcoin was a revolutionary innovation, a new digital currency powered by complex mathematics, cryptography, and transparency. A symbol of monetary independence, Bitcoin operated entirely on the internet and depended on its users.

For the first time, every transaction involving a financial instrument was permanently recorded on a public database called the blockchain, ensuring that no one could lie about their actions. This was a significant departure from the traditional financial system, where transactions could be obscured, and currencies manipulated by individuals who hadn't created any real value but seemed to possess all the money.

This marked the first time in history when transparency and sovereignty aligned.

Facts about Bitcoin that you never knew about:

1. The Dark Silk Road was the first company to invest in Bitcoin, dealing mostly in illegal drugs and using Bitcoin for transactions but was shutdown in2013

2. Virtual currencies like Bitcoin have been prohibited in China since 2009.

3. Bito is the first Bitcoin ETF approved by the SEC and listed on the Chicago Mercantile Exchange.

4. The initial Bitcoin commercial transaction was made by Laszlo Hanyecz, a programmer who bought 2 pizzas for 10,000 Bitcoin. Today, that amount of Bitcoin is worth over $400 million.

5. The smallest amount of Bitcoin is called a "Satoshi," equivalent to 0.00000001.

6. The total amount of Bitcoin created is 21 million, with over 17 million Bitcoin in circulation. According to experts, more will be mined in 2024.

7. Bitcoin mining consumes as much data as five effective companies combined.

Source : https://en.m.wikipedia.org/wiki/Bitcoin#:~:text=Based%20on%20a%20free%20market,adopted%20it%20as%20legal%20tender.

https://www.coinmama.com/blog/40-surprising-facts-about-bitcoin/