*** #Bitcoin eliminates "DOUBLE SPENDING" in central banking. ***
If those of you who have been through or learned about the Global Financial Crisis in 2008, then you know EXACTLY why #Bitcoin is a game changer to our financial system.
Let me explain:
Before 2008, there was a program issued by commercial banks called subprime mortgage loans, aka "Ninja loans" (No income, no assets) which backed by the government.
It means that the home buyers DO NOT have to have any INCOME or ASSET or CREDIT to qualify for that mortgage loan, if the buyers are unable to pay for the loan. "don't worry, the government will HELP THE BANK pay for it. NOT for the home buyers"
Commercial banks saw this was a GREAT opportunity to make great profit for themselves.
With this "irresponsible" lending programs, banks found a new way to play GAME by selling their mortgage backed security (customers' mortgage loan papers) to other banks to make profits. They re-sell the SAME HOUSE for multiple times and with multiple profits. Resulted with millions of those toxic loans flooded into the market.
"People thought houses ALWAYS go up in price!" until they are not.
The result of 2008 Global Financial Crisis was catastrophic failure in banking system. It cause human lives, people lost $Trillions in market crash, high unemployment, people lost their homes, etc.
**** In the early of 2009, a person or persons with the name Satoshi Nakamoto came up with the idea to transmit value over the internet without relying on a 3rd party (the banks), which called #BITCOIN
This idea was to solve the "DOUBLE SPENDING" problem what commercial banks did which caused the monster financial crisis a year before.
It simply means that when you have 1 #Bitcoin to pay for a $1 house, you lose that $1. You cannot spend that #Bitcoin TWICE.
#Bitcoin makes users to be HONEST, you cannot spend more than you have.
This idea is simple and elegant for accounting ledger for personal, community, companies, or even for nation states.
This is why #BITCOIN is extremely important.
"I believe it's necessary to return control of money back to the people." - Satoshi Nakamoto
