Genesis Block

The Bitcoin blockchain records all transactions on the Bitcoin network. Each transaction gets stored and layered upon one another which forms the blockchain. The very first crypto block that was ever mined is referred to as the Genesis Block. This block is the foundation of millions of transactions that have occurred since on the Bitcoin blockchain and its deep layers of financial transactions is one of the reasons for its security and immutability. The Genesis Block was mined on January 3rd, 2009. This being just after the 2008 Global Financial Crisis (GFC). The GFC was a period of extreme financial volatility that was caused by the subprime mortgage market where shady mortgage brokers were able to get rich by approving irresponsible loans to middle-class Americans. The mortgage obligations for these loans were never going to be able to be paid back when a small increase in interests rates occurred. When that happened, what followed was a financial catastrophe that not only ruined the housing investments of middle-class Americans but also took down a giant bank, the Lehman Brothers. Although this bank failed, many other global financial institutions suffered billions in losses and only survived as they were bailed out by governments, at the expense of the taxpayer. Satoshi disliked the fact that too-big-to-fail banks existed and created Bitcoin that has no third-party or corporate institution in between Bitcoin and the user. Therefore, Bitcoin cannot, nor does it ever need to be “bailed out”. Satoshi included a secret message in the Genesis Block, “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” This was a headline from an article on the cover of The London Times newspaper. It’s a message in the foundation of the Bitcoin network that serves forever a reminder that Bitcoin was created to be a decentralised currency for the people and not a government backed currency that is exposed to radical manipulation and debasement.

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