Topic: A Crisis in Central Banking: Will It Soon Explode? (Read 1636 times)

This isn't something like petrol prices that miners will just pass away the effect. In decentralized economy one is free to choose so if miners continue to hike their fees in such a way people are free to move to another cryptocurrency. Moreover, we need such a system wherein everyone is taxed but everyone is provided adequate amenities too. A government won't provide amenities without tax. We need to think of a system with govt where crypto fits in.

a country needs tax to be able to fund their Health, education, transport etc. systems.
if for instance a country started to tax mining it would have to be regulated and this
goes against what crypto is about.

also if countries taxed mining, miners would just pass those taxes down the line to
transactions in the form of fees, as in fees will increase. not good and its not going
to happen anyway.

Cryptocurrency doesnt really have tax, so if the government just allow it, soon it will become the citizens' source of income. If that were to happen, the government wont have money for economic purposes. Sometimes the banning of bitcoin may solve issue to a country's bankruptcy. Their banks that allow cryptocurency in their own place but that is only for 3rd world countries. If a country can make infrastructures for crypto mining, then tax wont be a problem anymore.

They can regulate the value of money only when there is no other alternative Fiat. Central banks run the mechanisms of inflation and deflation. Thus they constantly climbs into his pocket to people and shift their shoulders all the mismanagement of the economy by the government. Bitcoin changes this system. Therefore, banks are afraid of him but don't know ways to deny it.

I don’t think so that the crisis in central bank will leads to explosion of allegations. The central banks govern all financial intermediaries in all commercial or digital banks in their country. They the one who regulate and solve the issue regards to the monetary value of money.

Come on, you have to be trolling.

The balance sheets of the big central banks have grown to unprecedented levels.
This has lead to an also unprecedented rise of asset prices (real estate, stocks ... even Bitcoin).

On the other hand, the working class, who doesn´t own as many assets as the elite
had to stomach a big decrease in the purchasing power of their wages.

Expanding the money supply devaluates the money that is already in existence.
This is one of the reasons why the supply cap of Bitcoins is of paramount importance.
Sound money will make the world a better place.

Before the 1960s the money was guaranteed gold. Lol! This is what country was that? If you mean the USSR it is not true. Some banknotes do this was written, but it was a lie. Dollars had a label until 1925. Probably for this reason that these notes are withdrawn from circulation. After the second world war, the world is ruled by the dollar. It is not backed by anything.

Very well said which I do really agree on the words that you said on here. Terms used isn't really appropriate on the things that have been asked or being queried. Banks cant do nothing when it comes on decentralized crypto this is why I can see that they would rather make their own path that would really be more different on what we are seeing on crypto. Regarding crisis I cant see such thing as of now.

There is no crisis in the central bank, since they provide well systemize management in all aspects. Besides they make a detailed decision for every circumstances to avoid conflicts.

I don't really think there is much sort of crisis currently in the system. Even if there is any such crisis its just momentary and would soon turn to boom. We are still not at the verge of end of fiat system. But yes I saw the gold silver theory by Mike Maloney his theory seems to be quite convincing and we might see a huge setback in system due to it. Not quite sure if cryptos are the correct way out.

Bitcoin has completely changed my Outlook on deposits. I never trusted banks so I never had deposits. Me some of percent of income per year are not worth the risk to which I exposed when have money in the Bank. After in 2008 I saw how bankrupt a lot of banks, I only use them to have a credit card.

I guess it will soon explode should it not UP its game when it comes to handling the money affairs of all its clients. We are fully aware that when you deposit your money in banks, it does not earn much interest. Hence, many relate banking to just storing or safekeeping their hard-earned money because they know fully well their money does not grow in it. This is basically the reason some would most likely invest their money in properties, stock market and the like rather than storing the same in banks.

It seems to me that banks are losing trust not only because of the mortgage crisis. Banks are parasites on the people. If you put money on Deposit then you pay the minimum. This is only enough to compensate for losses from inflation. But if you take a loan from the bankers you have to pay big money. Many people have lost everything that is acquired in his entire life.

It is true that there is a real crisis of confidence in central banks and in banks, mostly because of the subprime crisis. By printing money at will, the central banks have increase the debt of the Country. All because of the banks. They should have leaked all these banks and all the companies that did anything.
Will the banks explode? Every year we hear all kinds of specialists who tell you that we must be careful that the crisis will happen, that countries will not be able to bear their debts etc. For the moment, it is not yet the apocaypse, the system still holds

Central Banks will always find a way out of the entire situation and because government continued dominance relied on them getting it right, they will still have the support. It does not cost the government anything to even borrow from other countries and let the citizen pay till the next century so far they continue to keep their dominance.

Central banks, no matter how we detest their policies, a lot of citizens still relies on their existence which is what matter all we have to do is to find a way to continue operating and keep our own finance from their own bubble whenever its going to happen. It maybe now, it maybe never.

Our Central just gave a good to go written deal on cryptocurrency. Although it was not directly passed in the legislative, at least the bank made good deals on services about bitcoin. Affiliating banks to allow users to withdraw their own money at some banks.It might not be easy if it went to legislative requiring many signatures and even attracting media and i dont even trust medias to makes ads about cryptpcurrency.

well, at this stage i own very little sums of cryptos. i am just learning how it works. but because i concidere bitcoin honest money i would very much like to see the economy functioning with cryptos instead of fiat currency manipylated by the banks for their own profit. my concern as i said is that in the next crisis cryptos will show disadvantages instead of advantages and that will scare people away. i dont see cryptos only as store of value...sure thats one role to play, but if the dont function under any cercomstances (heavy volyme, banks closed) and if they dont fullfil their means of exchange role then i suspect they will be hit hard in a 2008 situation

From this no one is immune. But tell me why you need the bitcoin. I understand that you want to earn more money to buy yourself something that you wouldn't buy with Fiat. Why do you hold bitcoin for a long period? Buy. Then you will be immune from any crisis. If you hold your coins it means that the money you do not need and you do not wish to lose them.

hello everyone,
the issue of the next economic crises is in my mind also. we very well know that every 7 to10 years some kind of economic crises explodes. So next time arround cryptos will be here as a safe heaven. but because i live in greece and i have seen first hand how an economic crises unfolds let me share some thougths with you.
Some day we will wake up and the mainstream media will shout that the stock market is rapidly declining. the goverment at first will say everything is under control but then few days later will pass strange laws that you couldnt imagine beforehand. As for the banks, at first they will try to keep mute about the bank run and when situation only gets worse then they will implement what we call here capital controls, meaning every person has a limit as to how much money can withdraw. anyway to make a long story short money got stuck in the banks.
Now we all hope at some point in time cryptos will help us get rid off the banks but i am talking what will happen in a year or so...
Imagine you own some money in cryptos and you want to turn some of it in your nation currency so that you can go and buy the everyday staff. if you are lucky and your crypto exchange is still working and not out of order due to heavy volume (as coinbase was yesterday) then money will be sent to your bank account or your card...But what good is it if your bank will not let you access that money due to capital controls?
Here is what i fear and please share your thougths.
When the crises begins maybe cryptos will rise even fearther, but when people in big numbers try to redeem some of the cryptos to facilitate their everyday living the system will colapse. Either the exchanges wont have enough fiat or the money eventualy will get stuck again in the local bank. The only way arround this situation (meaning the need to redeem cryptos to fiat) is if everyday needs can be paid for with cryptos directly (as if paying your local gus station, groceries etc,so life can go on with closed banks) and i believe we are not there yet.
So next economic crises insted of proving the advantages of cryptos will prove their uselessness?

You are wrong. The main objective of banks is to stimulate the economy. Every person has a stockpile of extra money. In order to make this money work for the economy, banks make loans to companies. With bitcoin it is not possible so I see no reason for the existence of banks if all people will use bitcoin.