Review of the 2008 Financial Crisis: From Crisis to the Birth of Crypto Assets

What happened in 2008? The beginning of a global economic shock.

Fifteen years ago, the financial crisis of 2008 was like a sudden storm that completely changed the global economic landscape. This crisis began with the subprime mortgage problem in the U.S. housing market and gradually evolved into a global economic downturn. Looking back at what happened in 2008, we can see that this crisis was not only an economic disaster but also a profound interrogation of the global financial system.

The consequences at that time were extremely serious—over 8 million people in the United States were unemployed, about 2.5 million businesses were forced to close, and nearly 4 million households lost their homes in less than two years. Behind these numbers are countless broken families and a deep disappointment in the financial system. The unemployment rate peaked at 10% in 2009 and did not return to pre-crisis levels until 2016, meaning that many people took a full 7 years to get back on their feet.

The Root of the Crisis: A “Perfect Storm”

To understand what happened in 2008, we need to trace back to the root of the problem. This crisis did not arise suddenly, but rather as a result of multiple factors accumulating over a long period.

Firstly, the housing market in the United States became the catalyst. Financial institutions issued a large number of high-risk mortgage loans, which ultimately evolved into systemic risks. When housing prices began to decline, the entire financial chain started to collapse. To make matters worse, the bankruptcy of Lehman Brothers became the last straw that broke the camel's back, and its ripple effect affected the financial systems of both the United States and Europe.

These events have exposed deep-seated issues within the financial system—weak regulation, uncontrolled corporate culture, and flaws in risk management. The judgment errors of policymakers, regulators, and decision-makers over the years ultimately led to this massive economic crisis.

The Situation 15 Years Later: Problems Still Persist

Although regulators claim that the global financial system has improved and security measures have been significantly strengthened, the reality is not so optimistic. High-risk loans have reappeared in the market, and the interest rate environment has undergone drastic changes.

What is more concerning is that, although everything seems to be improving on the surface, certain fundamental issues remain unresolved. The historical lessons of financial crises tell us that merely establishing new rules is not enough; deep structural problems must be addressed. Many experts are still worried: could a crisis similar to that of 2008 occur again? The answer is: it is entirely possible.

The Birth of Bitcoin: A Response to the Financial System

It is worth noting that 2008 was not only the year of the financial crisis, but also the year of the birth of Bitcoin. This is no coincidence.

Unlike fiat currencies such as the US Dollar and the British Pound, Bitcoin and other cryptocurrencies are decentralized and not controlled by any government or central bank. Instead, the generation of new coins is determined by a set of predefined rules (protocols). The Bitcoin protocol and its underlying proof-of-work consensus mechanism ensure that the issuance of new coins follows a stable schedule.

This process is known as mining. Miners are responsible not only for introducing new coins into the system but also for protecting the network by verifying and confirming transactions. More importantly, the Bitcoin protocol sets a fixed maximum supply—there will only ever be a total of 21 million Bitcoins. This means there will be no unexpected changes in supply.

In addition, the source code of Bitcoin is open source, and anyone can review it and even participate in its development and improvement. This transparency and decentralization contrast sharply with the opacity of traditional financial systems.

Conclusion: Insights from History and Future Possibilities

Fifteen years have passed, but the scars of the 2008 financial crisis have still not fully healed. This crisis has shown us the fragility of the traditional financial system. It is for this reason that Bitcoin and other cryptocurrencies have emerged, providing a new option for those who have lost faith in the traditional financial system.

Although cryptocurrencies still have a long way to go, they do represent a viable alternative to traditional fiat currency systems. An economic network built on such a decentralized system has the potential to provide economic independence to those marginalized by traditional systems and create a better world for the future.