The creation of Bitcoin was right after the 2008 financial crisis, the most severe economic crisis since the Great Depression. This is not coincidental. The inventor of the Bitcoin cryptocurrency aimed at addressing people's disillusionment with financial institutions, whose epic failures in risk controls resulted in the 2008 financial crisis.
A fundamental role played by financial institutions is to be an intermediary entity and bring untrusting parties together to facilitate transactions. For example, a retail bank attracts residual money from individuals and lends to individuals or companies that need the money. The difference in interest paid to the money suppliers and borrowers is the fee a bank charges for providing the ...
