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In the Ashes of Collapsing Banks, DeFi Has an Opportunity for Growth
Understanding the Value of Decentralized Finance in Times of Crisis
First Republic Bank, Silicon Valley Bank, and Signature Bank have failed. PacWest ($PACW), First Horizon($FHN), Western Alliance ($WAL), and many more are on the brink of collapse.
Let’s roll back a little in time to understand the weight of the collapsing banks on today’s world economy.
In 2008, the global financial crisis peaked, and the world’s banking system was on the brink of collapse.
Governments worldwide bailed out the banks to prevent a catastrophic collapse of the global economy.
In this context, Bitcoin emerged, offering an alternative to the traditional banking system.
The creator of Bitcoin, Satoshi Nakamoto, included a headline from a news article in the genesis block of Bitcoin. The headline read:
“Chancellor on brink of second bailout for banks.”
This was a reference to the UK newspaper “The Times”, which reported the UK government’s impending second bailout for banks on its front page on the 3rd of Jan 2009.
This headline was significant because it highlighted the failure of the traditional banking…
