{"id":10852,"date":"2023-03-11T20:35:57","date_gmt":"2023-03-11T20:35:57","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=10852"},"modified":"2023-03-11T20:35:58","modified_gmt":"2023-03-11T20:35:58","slug":"banks-down-that-is-why-bitcoin-was-created-crypto-community-says","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=10852","title":{"rendered":"Banks down? That is why Bitcoin was created, crypto community says"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>The Silicon Valley Bank (SVB) collapse on March 10 has sparked fear, uncertainty and doubt (FUD) across the crypto community, leading many to return to crypto roots \u2014 reviving the Bitcoin white paper published just weeks after the Lehman Brothers meltdown in 2008.\u00a0<\/p>\n<p lang=\"en\" dir=\"ltr\">It&#8217;s truly amazing how many people are scared that a couple banks went down. Someone tell these people WHY BITCOIN WAS CREATED.<\/p>\n<p>\u2014 Toby Cunningham (@sircryptotips) March 11, 2023<\/p>\n<p>\u201cThere\u2019s an entire generation of builders who only read about Lehman and the financial crisis and scoffed at Bitcoin. Now, their eyes are wide open. Welcome new friends,\u201d stated\u00a0Ryan Selkis, founder and CEO of Messari.<\/p>\n<p lang=\"en\" dir=\"ltr\">in shock<\/p>\n<p>that is all<\/p>\n<p>the SPEED at which all of this is happening is unbelievable<\/p>\n<p>\u2014 Meltem Demirors (@Melt_Dem) March 10, 2023<\/p>\n<p>Approximately six weeks after the dramatic collapse of Lehman Brothers \u2014 the fourth-largest investment bank in the United States at the time \u2014 Satoshi Nakamoto released the now-famous white paper, paving the way for the emergence of the Bitcoin network. <\/p>\n<p>Some people blame the SVB failure on the rising interest rates in the United States. The Federal Reserve increased its benchmark rate over the past year to more than 4.5% \u2014 the highest rate since 2007. In January, the inflation rate in the U.S. was 6.4%.<\/p>\n<p lang=\"en\" dir=\"ltr\">Add \u201cinterest rate driven bank run\u201d to the increasingly long list of \u201cthings I did not think I\u2019d see in 2023\u201d<\/p>\n<p>\u2014 Sheila Warren (@sheila_warren) March 10, 2023<\/p>\n<p>Many crypto and tech companies are affected by the collapse of Silicon Valley Bank. SVB, a Federal Deposit Insurance Corporation-insured bank, was about to shut down operations when USD Coin (USDC) issuer Circle initiated a wire transfer to remove its funds. Circle revealed it could not withdraw $3.3 billion of its $40 billion reserves from SVB, leading to a sell-off and the stablecoin\u2019s price dropping below its $1 peg.\u00a0<\/p>\n<p lang=\"en\" dir=\"ltr\">Less than 24 hours old and already experienced his first bank run. pic.twitter.com\/PjqGh1UAXg<\/p>\n<p>\u2014 Michael Bentley (@euler_mab) March 11, 2023<\/p>\n<p>The stablecoin ecosystem felt an immediate effect as USDC depegged from the U.S. dollar. USDC\u2019s collateral influence\u00a0prompted other stablecoins to depeg from the dollar. Dai (DAI), a stablecoin issued by MakerDAO, lost 7.4% of its value due to USDC\u2019s depegging, Cointelegraph reported.<\/p>\n<p lang=\"en\" dir=\"ltr\">Stablecoins<br \/>Stablecoins<br \/>Stablecoins<br \/>Stablecoins<br \/>Stablecoins<br \/>Stablecoins<br \/>Unstablecoins<\/p>\n<p>\u2014 Cope (@Timccopeland) March 11, 2023<\/p>\n<p>Other popular stablecoins, such as Tether (USDT) and Binance USD (BUSD), continue to maintain a 1:1 peg with the U.S. dollar.<\/p>\n<p>Circle said it is now joining other customers and depositors in calling for the continuity of SVB, which the company alleged is important for the United States economy. Circle stated on Twitter that it would follow state and federal regulators\u2019 guidance.<\/p>\n<p>SVB was shut down by the California Department of Financial Protection and Innovation for undisclosed reasons on March 10. The California watchdog appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver to protect insured deposits.\u00a0However, the FDIC only insures deposits up to $250,000 per depositor, institution and ownership category.<\/p>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/banks-down-that-is-why-bitcoin-was-created-crypto-community-says\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Silicon Valley Bank (SVB) collapse on March 10 has sparked fear, uncertainty and doubt (FUD) across the crypto community, leading many to return to crypto roots \u2014 reviving the Bitcoin white paper published just weeks after the Lehman Brothers meltdown in 2008.\u00a0 It&#8217;s truly amazing how many people are scared that a couple banks [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10853,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-10852","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10852","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10852"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10852\/revisions"}],"predecessor-version":[{"id":10854,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10852\/revisions\/10854"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/10853"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10852"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10852"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10852"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}