Why Bitcoin Rejected Centralized Banking | CryptoKita
For decades, centralized banking was presented as the backbone of modern civilization. Banks held our money, governments regulated the system, and people were told that trust was enough. Yet beneath this structure, flaws quietly accumulated—until they could no longer be ignored. Bitcoin did not appear randomly, nor was it created as a technological experiment without purpose. It emerged as a direct response to the failures of centralized banking. To understand why Bitcoin rejected centralized banking, we must examine history, power structures, economic incentives, and the fundamental question of trust. The Foundations of Centralized Banking Centralized banking systems operate on a hierarchical model. At the top sit central banks, followed by commercial banks and financial institutions. Ordinary individuals exist at the bottom of this hierarchy, dependent on permissions, policies, and intermediaries. In theory, this system promises stability. Central authorities manage...
