Yesterday, on the 31st of October 2023, marked fifteen years since an event that has changed the lives of many, swayed the opinion of millions, and divided public opinion for years to come.
On the 31st of October, 2008, the anonymous Satoshi Nakamoto published the Bitcoin Whitepaper. Peer to Peer, decentralized electronic cash, the first fully functioning Blockchain based Currency.
Here at Stablecomp, we wanted to take this chance to remind ourselves and our readers of this space’s genesis and core principles, as to look forward with renewed hope and optimism.
2008, year of crisis
Satoshi Nakamoto, whoever he may be, had a clear starting point for Bitcoin, with am even clearer end-catalyst: these were respectively our traditional financial system’s corruption, and the 2008 housing bubble, which quickly turned into a global economic crisis of which we still suffer the effects.
Satoshi acts as an impartial, near ethereal observer for what is apparent to most of those who deal in finance; our traditional system has been scrambling for new solutions ever since the aftermath of the Vietnam War. As the dollar’s status as world reserve currency became more and more unchallenged, so did its inflation rates skyrocket to sustain the country’s aggressive foreign policy expenditures: From Vietnam to Israel, passing by Kuwait, Afghanistan, Iraq and Ukraine, the money flow needed to prop up the U.S.’s, and each following nation’s, national debt became more and more of an overbearing Damocle’s Sword.
This led to the dollar officially becoming independent from gold in 1971, which meant no sight of controlling inflation and national debt, and the subversion of what a banknote always was: a paper symbol for a tangible asset. In the last five decades, Our economy has seen more and more liberty in policy, with the introduction of financial instruments such as derivatives, which hold near incalculable outstanding debt, and very lax and lenient policies regarding mortgage selling.
Banks treated houses as just another asset, no matter who could realistically afford it or not, gaining more and more commissions each year. Facing the fear of losing their clients to competitors, credit agencies were forced to sustain the fable of most mortgages being Triple A security quality in the eyes of banks, and the default of most of these houses of cards brought us to 2008: unbreakable institutions going bankrupt, millions of people losing their homes and jobs, and a ripple effect that damaged numerous other countries, even forcing Greece and Cypro near the brink of societal collapse.
The Solution
A new solution was needed, And it took place in the last months of 2008: October gave us all Bitcoin, which through its ups and downs has undoubtedly impacted the financial system in a lasting way, introducing the concept of true censorship and inflation resistant, decentralized money.
Ethereum followed shortly after, and from there the floodgates were opened: we now live in a world where government independent, currency tied assets such as Stablecoins exist freely, and DeFi can be surfed for decentralized, low-risk returns.
Stablecomp would have never taken form if not for Satoshi Nakamoto’s protocol: today we remember his lasting contribution to society as a whole, recognizing the Blockchain space’s flaws but looking for an ever-growing, decentralized future.
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Giorgia Bagnasco