Cryptocurrency During a Financial and Banking Crisis

The rise of cryptocurrency should not be viewed in isolation. An important series of historical events happened that brought us to today where cryptocurrencies are relevant.

Roughly speaking most cryptocurrencies fall under the category of private currency, as opposed to fiat (or government money). Before the creation of Bitcoin, there were actually already many private currencies around, but despite this, we have undoubtedly been living in a long era dominated by fiat currencies.

However, economic conditions of the last two decades are hastening the era of private money, which is currently dominated by cryptocurrency. In fact, Bitcoin was officially released in January 2009, in response to conditions that were mainly created by the financial and banking crisis of 2008.

These conditions were triggered by the stock market collapse during the same year of the crisis. Interestingly, we have a similar example during the Great Depression, when the use of private and local currencies exploded after the stock market crash of 1929, in response to the economic conditions (financial and banking crisis) that ensued.

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from my blog at: cryptobigpicture

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