$20 Trillion US Debt Will Inevitably Lead to Big Crypto Boom

jseverson

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Quote from: squatter on November 13, 2018, 01:43:55 PM

That's what Voorhees is overlooking -- there's no guarantee if/when the US Dollar collapses that Bitcoin will be an established, trusted asset yet. Whether Bitcoin could serve as the "escape route" really depends on how far along we are with adoption and legitimacy.

That's true. I certainly don't think it's going to happen within today to 2020, which is apparently when they think it'll happen:

Quote from: https://www.ccn.com/20-trillion-us-debt-will-inevitably-lead-to-big-crypto-boom-prominent-investors/

If a financial crisis is to occur by the end of 2020 as predicted by many economists in the US primarily due to the overly high-interest rate set forth by the Federal Reserve, then the US dollar could drop substantially in value and open up investors to stores of value such as gold and cryptocurrencies whose value is not dependent of the global economy.

We'll see though I suppose. Maybe some unexpected development can fast track adoption.

cellard

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Quote from: talkbitcoin on November 13, 2018, 05:36:11 AM

unfortunately i can not see any kind of "crypto" boom in our near future because the "cryptos" are mostly pump and dumps and you can not expect any kind of real booms from any of them.
the pumps can only take the price so high before it busts and the coin gets dumped hard. as you can see from the market of this year as the altcoins continue getting dumped to this day.

bitcoin is another matter. the US economy might collapse and we start seeing some economy crisis and in that case bitcoin may start shining and increases its price.

Of course altcoins are nonsense and will not play a major role may the US collapse (which it definitely should on our lifetimes assuming you are around age 60... since it should happen within the next 20).

Some theorize that Bitcoin was created by US intelligence or some other big party (your pick here... Israel, Rothchilds, anyone big you like) in order to avoid the fiat collapse and have a neutral safe haven that allows for seamless movements in the information age (so gold doesn't cut it). I find it ironic that there's $21 trillion in debt and 21 million Bitcoin total... it's like a perfect storm for $1,000,000 BTC.

waterman

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21.7 trillion $ Oh my GOD! The U.S debt is the biggest in the world? to Whom we owe this money? This is scary and exciting at the same time I mean I do not want another economic crisis but we will love to see the price of Bitcoin rise up but not because of an economic crisis. Lets hope that the federal reserve, banks and the government know what are they doing and not mess up everything

khaled0111

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I hope so. But, what is the link between the financial crisis and cryptocurrencies.
I am not a financial expert that is why I am wondering about how this crisis may affect the cryptocurrency market!

maianh09

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This will affect the direction and movement of Cryptocurrency. But using Crypto to get rid of this debt will make things worse, so I'm sure this will not happen. It is a great solution, but the creditors will not be foolish to accept this solution.

Gamblet

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I think that at the moment it is difficult to say how Bitcoin will behave during the economic crisis. It will be a difficult time and I think that Bitcoin has a chance to survive in these years.

NotifyCoin

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Yeah who knows how long it will take for this to actually play out. We could see a stagflation scenario like what happened with Japan in the 1990's, which wouldn't see a huge jump to crypto, hard to say!

darkangel11

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Quote from: [ProTrader] on November 13, 2018, 03:09:12 PM

I expect that to happen. If Donald Trump cannot find a way to minimize their deficit to battle the inflation, USA economy will collapse and the people will suffer. It is better to save some for the storm coming.

It will collapse but we don't know how long it will take. It may be in the next 10 years, but it can also be 20 or 50 years. Counting on profits from a possible US economy collapse is pretty naive. Holding some cryptocurrencies just to play it safe is smart. Don't be greedy, treat it like a failsafe.

[ProTrader]

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I expect that to happen. If Donald Trump cannot find a way to minimize their deficit to battle the inflation, USA economy will collapse and the people will suffer. It is better to save some for the storm coming.

kryptqnick

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Quote from: likeprotocol on November 12, 2018, 11:47:42 AM

Voorhees suggested that to repay the national debt, the government and the federal reserve will be forced to print more fiat money, leading to inflation and a decline in the purchasing power of the US dollar.
If a financial crisis is to occur by the end of 2020 as predicted by many economists in the US primarily due to the overly high-interest rate set forth by the Federal Reserve, then the US dollar could drop substantially in value and open up investors to stores of value such as gold and cryptocurrencies whose value is not dependent of the global economy.

I completely agree with Voorhees that debt stimulates printing more money and inflation will burst eventually. Once the USD is crushed, I think it will be a catastrophy for the fiat system as such, because dollar is supposed to signify stability, be something that other fiat currencies also rely on. EUR might survive longer, but it will be just a matter of time. Returning to backing money with gold won't make much sense, because there isn't enough gold anyway. Cryptocurrencies might be what saves the world, with their naturally limited supply offering a financial system with no risk of hyperinflation.

wndrbr3d

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Quote from: petrcoin on November 13, 2018, 08:38:34 AM

There is a global crysis on the way and it is getting closer every day.

It will cause crypto markets grow like hell.

You claim that during global crisis, a lot of cash flows will be directed from traditional actives to crypto industry , dont you?
What a reason?

digitalcryptocoin

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Quote from: jseverson on November 13, 2018, 04:53:42 AM

I honestly don't think such a scenario would be that big of a boon for crypto. We've already seen it in the small scale (Venezuela, Turkey, etc.) and crypto hasn't been a very popular choice for diversification. A USD devaluation would affect everyone's economies, and it's very likely that there will be no escaping it.

I could easily be wrong, but I'd rather not find out. The growing debt truly is concerning though. It's going to be interesting to see how they try to work around it.

Its true. I agree. Basically issue is about centralization and decentralization, current economy is completely controlled under centralized system controlled by governing authorities. And its a traditional way of exchanging services or good against currency. Crypto is really great alternative solution. But it all still under tasting phase, every developed countries are trying and testing possibilities of implementation of blockchain and cryptocurrencies.

squatter

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Quote from: jseverson on November 13, 2018, 04:53:42 AM

I honestly don't think such a scenario would be that big of a boon for crypto. We've already seen it in the small scale (Venezuela, Turkey, etc.) and crypto hasn't been a very popular choice for diversification. A USD devaluation would affect everyone's economies, and it's very likely that there will be no escaping it.

I think Bitcoin was still too young and experimental for fiat instability to drive adoption in those cases. When you're worried about putting food on the table tomorrow and next week, it's a lot smarter to put your money into dollars than something so risky and volatile as Bitcoin.

That's what Voorhees is overlooking -- there's no guarantee if/when the US Dollar collapses that Bitcoin will be an established, trusted asset yet. Whether Bitcoin could serve as the "escape route" really depends on how far along we are with adoption and legitimacy.

CVMI

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I definitely think that this is an interesting way to look at, and maybe find a solution for, the instability of our market. I think that the decentralization of cryto currencies is definitely a reason why it is soaring in popularity and why many people think that it is soon going to become the new standard. I think that the government, specifically The Federal Reserve, could maybe take a few prominent characteristics from cryto currencies in order to shape a better functioning economy.

Flying BTC

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US debt can lead to may be some budget expenses cutting, but it can not affect crypto, because debt is in USD. The problem can be that the debt is very, very large. Wink

btyco

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They are never going to be able to repay this debt, if donald trump the wirld greatest businessman billionaire, then no one else can. Only bitcoin can help them

sinkfish

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US stretching too much of its debt. while the economy cannot pay off the debt... USD will inflate even further. investor will escape from USD. bitcoin is one of the safe haven, potentially the whole crypto market.

seoincorporation

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Seat , Relax and Watch Crypto Boom

And you forget to grab some popcorn!

This is a great new, and more with that CNN source!, that huge murica debt will bring some nice time to cryptos, so, is time to ride the wave guys. Lets hope for another $20k bump for this xmas.

petrcoin

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There is a global crysis on the way and it is getting closer every day.

It will cause crypto markets grow like hell.

sunsilk

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People are still skeptical about crypto's though there's a possibly that some would probably look at crypto as a solution to that debt problem but we can't be sure if most of them will come here.

World's entire economy is dependent to US, so if financial crisis will trigger soon I guess that each market will be affected. Like stocks market, we saw it on bear market while crypto is on the same track too. But I'd like to see the crypto market boom soon.

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