Evolution of Crypto

How has cryptocurrency evolved?

• In the financial ecosystem, banks function as intermediaries to address the trust deficit. For instance, if there are 2 persons- A and B, living in different parts of the country. They are strangers but A has something B wants to buy. In such a situation, questions arise about whether the money or the goods should be sent first. In such a situation, a guarantor is required to show that a particular person is good for money.
• When the Lehman Brothers went bankrupt in 2008, financial institutions started collapsing in many part of the world, in a domino effect i.e. the actions of a single intermediary led to an interconnected financial system going bust.
• When this happened, the Lehman Brothers were bailed out using the US taxpayers’ money- instead of the moral hazard problem being addressed.
• In this