Recent crunches in the American banking sector are sending waves across the world.
Following Silvergate, Silicon Valley Bank, and the Signature bank failed. Big Trio of technology-focused banks bankruptcy which I will call "SSS", failed due to many circumstances which caused a worldwide panic in the banking sector.
And we already have seen something similar.
A failing bank is not a good sign. Most people that are interested in finance knew that this day will come because of the overall bad shape of the financial landscape worldwide. A cascading failure of banks happened during the 2008 Global Financial Crisis, with its infamous Lehman Brothers crash.
SSS might be a sign we are currently in the middle of a technology-financial crisis and there's still a long road ahead of us.
But there's a difference between those two events.
GFC(Global Financial Crisis) was a result of predatory financial sector practices and SSS(Silvergate, Silicon Valley Bank, Signature bank) is caused by bad funds management.
Today is the day Bitcoin is tested.
Bitcoin was designed specifically to avoid situations like this. Two of the aforementioned events were directly caused because of either greed or ignorance of institutions that were supposed to show the highest standards when it comes to financial operations.
That's why Bitcoin exists, to tear out the value and assets from people whom you are supposed to trust, and deliver a technological solution that offers transparency.
Because obviously, trust is the problem. When those institutions gain too much trust and value, they begin to crumble.
And responsibility is evenly spread among unaware, innocent people because that's how the system works.
But the law is not bad. It's the people. The people who keep hold of all that money, the people who think that they know better, and in the end the people who are afraid of responsibility.
Crypto is a great tool to at least reduce the effects of a crisis.
What causes most of the crises is too much growth, and "too much growth" is caused by speculation. Speculation is caused by understatements and concealments and there is no room for understatements and concealments in Bitcoin.
But those two are tools for insincere people who want to take profit on our unawareness.
But it cannot continue on forever.
In previous financial constipations, a common man had no tool to escape from immoral practices, but today we have Bitcoin, and Bitcoin is Evil-proof.
What are your thoughts? Share them with me in the comments.
None of the information in this article should be considered financial advice, it's my analysis and facts I wanted to share with this wonderful community.
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