Topic: A Crisis in Central Banking: Will It Soon Explode? - page 2. (Read 1636 times)

The biggest percent of people is not satisfied by the work of central banks and banking system in general, that's why many people turned to crypto currencies, which can give them much better terms. Bans see it and already become provide different kinds of reconstructions to be more welcome to people and to not loose their clients. It is not a crisis for banks - it is a new life to which they should to adopt.

If bitcoin will get a global distribution of the existing banking system has nothing to save. She can't compete with bitcoin. Banks are parasites on humans and that's why people don't like them. Banks can go to work with the state or die. I think the banks will set the politicians to ban bitcoin.

They need to cope with that change, apparently, crying and blaming game is not the solution for their problem but rather shaping their system to fit with the current environment, as you can see they are now speculating too much and anticipating that the end of central banks is near, the solution here is to adapt the change and start creating new things that may save them.

The functionalities and the workplace of central banks are very traditional and rigid . Remember the days , when banking system was just on papers . That time was the worst . The introduction of computers and technology to the banks was a big push for its management and handling the records easily . The officers themselves were satisfied after the division of load with machines . But now the era of Net banking , Digital Currency and of course Bitcoin has come . History has given many evidences that coping with new changes totally shake the banking system . "EXPLODING" is a big word but it can highly "TRANSFORM" the way Central Banks works . Because with the advancements and developments people are also expecting something easier that the rigid banking systems.

Yes and that platform has starting to make a difference in our society now that the central banks opposes because it is the proof that the financial system in our world is manipulated by those in power.. A reality that most of us know but we ignored for a long time as there is no alternative to take a stand of this monopolistic control on our lives for more than a lifetime.. Cryptocurrency popularity is a revolutionary statement by every individuals who experienced the past and trust a decentralized one..

I wholeheartedly agree with the first part of your statement. Cryptocurrency and its related technologies are still in its infancy and therefore still have a long
way to go. Besides, the amount of nefarious actors who piggyback on the success of Bitcoin is way too high at the moment. Just look
at the BTC forks that are getting even more ridiculous by each new one.

The prime example of this week is probably the Bitcoin Diamond fork that was supposed to happen yesterday. A shitty website
combined with a GitHub that has an incredible 3 (!) commits:
https://github.com/Bitcoin-Diamond/BitcoinDiamond

However, I disagree with the second part of your post. I think central banking is the issue, because central banks have historically been prone to
increase the money supply, which devaluates the savings of the existing holders of the respective currency. A system with a predictable currency supply
like Bitcoin removes this and therefore encourages a lower time preference.

This distrust on banks is not yet very pronounced as we all know that banks are playing very critical role in the overall economic system. And it is precisely because we trust them so much in the past that people are reassessing if the trust bestowed on banks is worth it especially as we are about to leap into the future. What happened in those countries you mentioned was one of the reasons why people are now questioning the integrity of the banks because obviously corruption had already hacked into their integrity and promises are already meant to be broken. In the face of all the economic problems faced by the banking system, soon cracks would be visible and we don't want to be part of the population holding empty bags and just served empty rhetoric.

Oh Bitcoin is definitely a giant leap towards independence from the central banking system!

But it's just one step of many. We've only just begun to understand the nuances of cryptocurrencies and its related technologies. For the most part we're still making up shit as we go. The crypto-ecosystem still falls in the same traps as the traditional market with its booms and busts and bubbles and pennystocks. We need to grow up first.

Maybe central banking isn't even the issue. Maybe it's merely the illusion of control that needs to be given up. Luckily Bitcoin gets rid of this illusion by being a plain, simple and uncompromising protocol. But I doubt that this alone makes for a suitable alternative to central banking. Nonetheless, in my humble opinion, it's a necessary step in the right direction.

They can support them but can they help them with the problems they're facing? You can only print money for so long. I know you have your own beliefs, but you can't deny the fact that the banking system has already failed. You can't reason with math and it shows that the inflation is killing every single fiat currency and for now they're buying time, printing money, stealing from people, but for how long? At some point it will have to reset just like it did in Zimbabwe for instance, where they had to rebuy currency at lower rates and replace it with a new one, which was nothing but a theft. They stole from the people to keep the country afloat for a couple years.


I haven't said that it can! Show me where I did that please. I don't trust them and I think they will crack under pressure at some point, which means the whole foundation of a country will have to be rethought and rebuilt.

But you are posting on a website that is dedicated to the one asset that is a suitable alternative to central banking!

You should really get your pre-order in for this upcoming book by Saifedean Ammous:
https://www.amazon.com/Bitcoin-Standard-Decentralized-Alternative-Central/dp/1119473861


This process will most likely take another 1-2 decades, but it is inevitable in my opinion. A system without a central authority that
enables certain actors to siphon off a huge chunk of the productivity increase is simply superior to the status quo.

"Whether they still fully understand the effects of interest rates" -- I honestly doubt that the effects of interest rates have ever been fully understood in the first place.

That being said, while things look grim I'm still positive that for the most part economies have grown ever more stable due to the economic learnings of the last few decades. Still, it's going to be interesting times -- in the negative sense -- once interest rates get increased again. Given the current global economic situation we are entering more or less uncharted territory.


Central banks are definitely not the best way to handle things. However since, as mentioned above, the effects of interest rates -- and actually the whole of economics -- have not been fully understood yet, I doubt we'll come up with a better replacement for central banks any time soon. Even if cryptocurrencies are part of the solution, they are only one piece of the puzzle.




Any local transaction, regardless of whether it's made in Bitcoin or the local fiat currency, stimulates the local economy. It only fails to profit the state if the seller or service provider fails to pay taxes on their income.

As late as 1930's (a couple of years after the free banking era), anyone with a banking license was printing their own currency, all that changed today is how cryptocurrency is digital and back then it was on paper. The federal reserve was introduced at the end of the free banking era to control monetary policy and the economy due to the problems associated with the unregulated issuance of currency (related to trust). After WW2, central banks were formed all over the world. Most pegged their currency to the US dollar because the US dollar was backed by gold (and don't forget trust - banks run on trust e.g. 2008). All that changed when the US went full on into Fiat currency, the French event sent their battleship to collect back their gold.

Welcome to the new free digital-banking era!
All you need to do is look back into history and you will see its relation to today's cryptocurrency. History will just repeat itself, only this time, governments (typically group of big whales) will create centralized bodies around cryptocurrency. Back then the federal reserve was composed of the biggest financiers (JP Morgan, Rockefeller etc.), in the future the Bitcoin Federal Reserve will probably be composed of those in the NYA agreement (core, miners, exchanges) and Ethereum (need I say more - Ethereum Foundation) - this is already happening .

Do you know when the central banks lost it? Back in 2008, even today, central banks have no idea what to do to stimulate the economy. All they did was pump up the stock market, the problem is central banks have a balance sheet too....When central bankers go for negative interest rates (pay people to borrow money) or when they blame Millennials for not spending enough to stimulate a stagnant market, you know its only a matter of time before things really go downhill for central banks.

A change is needed..no doubt about it. Though the Central bank plays a vital role in the economy, but some corrupted people use this as a weapon to gain their dirty object. Banking system of some countries is corrupted and the system helps to produce defaulters. Political power influences on this and many politicians take money from the bank with their negative influences and ultimately they become defaulters. Money can be  laundered easily through bank illegally and this number is huge. So, a crisis  then arises to protect the banking sector and to fill up the vacuum with people money without having their consent. A system which runs by the money of the general people without their consent , i think that should be called " illegal" and "dangerous".

For me problem in central banking is that they are using people's money for them to earn from it. Whenever people are putting their money on banks it is invested by those banks to the market and they are just giving low interest to their depositor's. So when the economy of a country goes down banks will have a hard time to return the money to their depositor since most of the investments that they have is also depending on the economy of their country.

Moving money out of the banks doesn't mean that you are not using fiat anymore, yes as of now fiat currency is the one that we are using for everyday purchases but you have an option not to deposit it to any banks and have it stored on your place. Problem when you are placing your fiat in bank is when that bank goes down your fiat will be included on that fall.

You are wrong. The state cannot exist without banks. Fiat is the blood of any economy. Banks on the basis of this analogy, the heart. If it stops, the state can not exist. At the very least the state will use the mechanism of inflation and people will pay from his pocket for all the mistakes and fraud of the banks. Bitcoin may not be an alternative for Fiat. Everything will remain as it is now.

You have confirmed that the state will by all means to support the banks. We have not seen the attacking actions on the part of the state. In fact, the banking system around the world linked. They can easily unite in the fight against bitcoin and the government will on their side. It seems to me that banks will not have problems to close all the exchange of bitcoins for Fiat online. What will happen to bitcoin?

I admire your trust in the almighty and powerful state supporting the trustworthy banking system, but we could see it all going down numerous times. For  instance in the EU some countries have already went bankrupt. For instance Iceland was so indebted that they decided to ignore it, just like that guy who takes so many loans that he's no longer earning any money from his job, it all goes towards the interest. One day he says fuck it all, doesn't go to work, quits his job and starts drinking in bed. 
Cyprus had to steal money from its citizens save its banks from going under. Greece had to take financial support from the EU, otherwise it would have gone bankrupt  Do you really believe it can't happen again on a larger scale?

It seems to me that you are mistaken. Banks will never collapse. The banking system is mounted in a state economy. If it collapses it will mean the collapse of the state. In such circumstances, holders of bitcoin will also experience problems. No I don't believe in such a situation. The state will give money to banks for free. Only that they existed.

Personally, I don't trust banks and I'm in the process of moving my money out of them. I actually don't need most of the things they offer like loans, credit cards, savings accounts. The only thing that I'm using are the normal sepa transfers and when cryptocurrencies take over I'm no longer going to. People always had limited trust towards banks because they were always operating on bigger sums than they could support. If me or you did it we'd be committing a fraud, but for them it's completely legal.
Now since the Cyprus bailout and Greek banking crisis people are even more suspicious of them. It's only a matter of time before it all collapses.