my dear friends welcome to our tutorial
series dedicated to cryptocurrencies today we will talk about cryptocurrencies
and especially why they exist the first cryptocurrency was launched on
january 1st 2009 however to understand why this cryptocurrency was invented we must understand
the context of the year before the year 2008. 2008 was the year of the biggest financial
crisis the world has ever seen to that date financial institutions were falling one
after the other from new york to amsterdam the crisis sparked a global recession
that resulted in increases in unemployment and suicide and a general distrust in government
institutions however to understand the downfall of financial institutions around the world
in 2008 we must go back to the early days of business transactions originally barter was
the main way of settling business transactions farmers in ancient egypt would exchange some of
their wheat harvest with beer jars then came the greeks and romans who introduced gold-based
currencies merchants would gladly provide the goods in exchange for the corresponding
weights in gold or a number of standardized gold coins gold stayed the standard of business
transaction settlements until the early 1970s when the u.s dollar the world's reserve
currency since the end of world war ii stopped being convertible to gold this moment was the
beginning of the u.s dollar as a fiat money a fiat money is any kind of currency
that is not attached to a physical good basically any fiat money is just a piece of
paper guaranteed by the goodwill of a particular government since governments come and go in
modern democracies each government as soon as it came into office started printing money for its
financial sponsors during election campaigns the result was that money was no more the result of
business transactions but of government lobbying companies discovered that they will gain
more by investing into political campaigns rather than into developing the quality of
their businesses these companies will then invest the free money to them provided by the
government into financial gambling the result has been the ever increasing speculation in
financial markets and hence the multitude of financial crisis the world has experienced in the
last 50 years it is therefore in the face of the downward spiral of wealth destruction that one
independent thinker self named satoshi nakamoto came forward with a system to bypass traditional
financial institutions in business transactions satoshi went on to propose to the
world a p2p digital currency he named bitcoin in the next video we will explain the
vision of satoshi nakamoto thank you for your time if you enjoyed this video please like share
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