Bitcoin has recently been rising in the midst of widespread banking sector issues, prompted by Silicon Valley Bank.
But bank runs have been a recurring issue throughout history, causing significant damage to the economy.
The collapse of major banks and the panic that followed during the Great Depression of the 1930s led to the creation of regulatory bodies such as the Federal Deposit Insurance Corporation (FDIC) to prevent future crises.
While the banking industry has evolved significantly since then, with the rise of online banks and fintech companies, the potential for crises still exists. Recent events show this risk is very real, prompting many to look to Bitcoin as a solution to avoiding banking crises.
In this article, we will explore the history of bank runs, their impact on the economy, and the measures taken to prevent them. We will examine examples of bank runs throughout history, including the Savings and Loan Crisis of…
