Satoshi Nakamoto described the state of banks and the fiat money system in 2008, their opponent Bitcoin
Twitter user @anilsaidso shared a screenshot of a statement made by the mysterious Bitcoin creator known as Satoshi Nakamoto. This is the main problem with banks and conventional currencies.
Statement by Satoshi on fiat and banking
This is a quote from Satoshi’s forum post that he posted on February 11, 2009. It explains the purpose of creating Bitcoin and why using banks requires too much trust without a guaranteed positive outcome. Among other things, banks require people to remain certain that their currency will not be downgraded.
Statement issued by Satoshi Nakamoto pic.twitter.com/d2VTQWondA
— Anil ⚡ (@anilsaidso) March 19, 2023
Satoshi (a person or a group of people, as some scholars believe) said, in particular, that there are many examples in the history of fiat money where central banks, which issue fiat currencies, have betrayed people’s trust. They require people to trust them to hold their money and transfer it electronically, 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 high fees that it is impossible to make micropayments.
The housing market crisis that took place in the United States in 2008 was followed by the banking crisis in Cyprus in 2013. At the time, a large part of the uninsured deposits in two major Cypriot banks were confiscated in the part of a $10 billion bailout of the local banking system by the EU and the IMF. This breach of bank confidence was the event that helped Bitcoin’s price soar high enough for the first time to make it mainstream.
Satoshi hints at new banking crises around the world
Many economists compare the current situation to bank failures and Bitcoin’s rise in 2013. Now that three major US banks – Silvergate, Silicon Valley Bank and Signature Bank – have gone insolvent, Bitcoin, as a result of this news and of several other factors, eventually managed to reclaim the high of $28,000, adding almost 40% in March of this year.
So, Satoshi’s forum message posted in 2011 clearly suggests that he didn’t believe in banks. He may not have foreseen the current problem with US banks, but he certainly assumed that banking crises would regularly arise with the faulty banking system.
Max Keizer on current US bank failures
Max Keizer believes that these banks are broken up (with the government protecting their deposits) in order to allow the Federal Reserve to issue its CBDC (the so-called “FedCoin”). Keizer also reminds his audience on Twitter that the CBDC will give the government complete control over how and where you spend money.
Also, the CBDC will have an expiration date so that people cannot save these coins. Apparently, Keiser is alluding to Bitcoin’s excellence against CBCDs here.
Remember that banks that fail are deliberately destroyed and deposits protected to make room for CBDCs to be issued by the FED. CBDCs allow the government to control how and where you spend money – and will come with an expiration date so you can’t save them.
— Max Keizer, Sr. bitcoin advisor to Pres. Bukele (@maxkeiser) March 20, 2023