Topic: :-> Bitcoin are helping to reduce global debt. :-> - page 3. (Read 570 times)
that's really true bro. that bitcoin is one of the best systems available today. which can make many investors come to make bitcoin their investment place. some of them even use bitcoin as a transaction and payment tool
I agree completely with your logic, I have never for once thought of it this way.
On a second thought, what would be the gate of those enterprenuers who wouldn't be able to secure a credit facility from the banks because the banks has no money to lend?
Don't you think ,this can decrease standard of living and increase unemployment rate too?
Thanks
On a second thought, what would be the gate of those enterprenuers who wouldn't be able to secure a credit facility from the banks because the banks has no money to lend?
Don't you think ,this can decrease standard of living and increase unemployment rate too?
Thanks
All of this would make sense when bitcoin is legalized throughout the world and is globally accepted. Banks have been doing this from a long time and will probably continue with the same.
Bitcoin is here to stay until we keep using it. It would be really hard for it to be globally accepted since it will cause a direct damage to the banks environment.
But once it is globally accepted then there would be no stop to the opportunities that it would bring to us.
Bitcoin is here to stay until we keep using it. It would be really hard for it to be globally accepted since it will cause a direct damage to the banks environment.
But once it is globally accepted then there would be no stop to the opportunities that it would bring to us.
Very interesting point of view, but I'm afraid in the end the bank still wins. People withdrawing their money from banks will likely lead to one of the following scenarios:
a) Central banks will allow banks to run on smaller fractional reserves and / orprint more money lend more money to banks.
b) Banks will charge higher interest rates on what little money they can lend to people due to supply and demand.
Neither of which would be a pretty sight. Let's keep in mind that debt is inherent to the way our current economy runs, so it's unlikely to go away easily.
a) Central banks will allow banks to run on smaller fractional reserves and / or
b) Banks will charge higher interest rates on what little money they can lend to people due to supply and demand.
Neither of which would be a pretty sight. Let's keep in mind that debt is inherent to the way our current economy runs, so it's unlikely to go away easily.
About your point (B), I can see it going the other way too. I mean, banks offering higher interest rates in order for more people to save fiat currencies in banks.
Good point, there would be definitely bidirectional market forces at play.
Either way, the interest rates banks charge their debtors will still be profitably higher than the interest rate that they offer their depositors. Banking is a business after all.
lol that OP was so deep! 
But in reality I'm sure it doesn't help any more than changing fiat money to stocks, precious metals and other commodities. Exchanging your money for Crypto won't destroy the banknotes, it'll only reduce their buying power.
About your point (B), I can see it going the other way too. I mean, banks offering higher interest rates in order for more people to save fiat currencies in banks.
But in reality I'm sure it doesn't help any more than changing fiat money to stocks, precious metals and other commodities. Exchanging your money for Crypto won't destroy the banknotes, it'll only reduce their buying power.
Very interesting point of view, but I'm afraid in the end the bank still wins. People withdrawing their money from banks will likely lead to one of the following scenarios:
a) Central banks will allow banks to run on smaller fractional reserves and / orprint more money lend more money to banks.
b) Banks will charge higher interest rates on what little money they can lend to people due to supply and demand.
Neither of which would be a pretty sight. Let's keep in mind that debt is inherent to the way our current economy runs, so it's unlikely to go away easily.
a) Central banks will allow banks to run on smaller fractional reserves and / or
b) Banks will charge higher interest rates on what little money they can lend to people due to supply and demand.
Neither of which would be a pretty sight. Let's keep in mind that debt is inherent to the way our current economy runs, so it's unlikely to go away easily.
About your point (B), I can see it going the other way too. I mean, banks offering higher interest rates in order for more people to save fiat currencies in banks.
The point I am trying to make is not the elimination of all debt, but rather the reduction of global debt levels. Yes, the Reserve Banks will never stop printing money and dishing it out to Banks and interest rates hikes are under their control, but we can do our best to counter some of this, by not giving it to them on a plate. 
I think most of the debt belongs to countries and cooperations though, not to private individuals. Accordingly I believe that any attempt of debt reduction via private individuals is just a drop in the bucket, globally speaking. I don't have numbers on the global debts of private individuals and cooperations, but I do believe it's hard to top the debt levels of countries:
https://en.wikipedia.org/wiki/List_of_countries_by_external_debt
Looking at the debt per capita I get a feel that most of us are more in debt by proxy of being a citizen, rather than as private individuals. And that's just external debt.
Governments control every aspect of fiat currencies and they even control the value of that currency, so we are fighting to protect our wealth. Our only tool to fight back, is not to support them and by shifting our wealth into financial instruments that are not under their control.
I am happy with every single fiat currency that are removed from that corrupt system. 
I am happy with every single fiat currency that are removed from that corrupt system.
Here I wholeheartedly agree with you and I feel that this aspect of crypto has been criminally neglected by most people in the last few years. Kids these days seem to care more about lambos than about freedom.
anything that can cut the tyranny of the corrupted banks shorter can also be doing dozens of good things to the global economy and a part of that is the global debt . i haven't actually thought about it the way OP explained but that is an interesting thing to consider. i believe in a few years we are going to see a much better economy as the control of the banks reduces thanks to bitcoin and decentralization.
Bitcoin could help each other when price is grow up, but when bitcoin price still lower impossible could help to reduce global debt, many time bitcoin never growing up last one year and price always lower, will bitcoin grow up at the last of this year or not.
Very interesting point of view, but I'm afraid in the end the bank still wins. People withdrawing their money from banks will likely lead to one of the following scenarios:
a) Central banks will allow banks to run on smaller fractional reserves and / orprint more money lend more money to banks.
b) Banks will charge higher interest rates on what little money they can lend to people due to supply and demand.
Neither of which would be a pretty sight. Let's keep in mind that debt is inherent to the way our current economy runs, so it's unlikely to go away easily.
a) Central banks will allow banks to run on smaller fractional reserves and / or
b) Banks will charge higher interest rates on what little money they can lend to people due to supply and demand.
Neither of which would be a pretty sight. Let's keep in mind that debt is inherent to the way our current economy runs, so it's unlikely to go away easily.
The point I am trying to make is not the elimination of all debt, but rather the reduction of global debt levels. Yes, the Reserve Banks will never stop printing money and dishing it out to Banks and interest rates hikes are under their control, but we can do our best to counter some of this, by not giving it to them on a plate.
Governments control every aspect of fiat currencies and they even control the value of that currency, so we are fighting to protect our wealth.
I am happy with every single fiat currency that are removed from that corrupt system.
I don't see how the debt fiat spreadsheet lowers when people buy and hold Bitcoin. The debt of fiat didn't change with this action, money just moved from A to B and that's all. The debt is the same, in fact it increases since your money is no longer available for the state to confiscate when needed to pay for it.
If anything the more people buy and hold and never go back from BTC the faster fiat bankruptcy goes. Similar to how banks would crash if everyone went at the same time to withdraw their funds. However as soon as you buy property or anything that can be confiscated it will be capital that's available for them to cover debt.
Just stop thinking about it, fiat works through debt, there's no escape from debt ever in a fiat world, however you now have Bitcoin as an hedge.
If anything the more people buy and hold and never go back from BTC the faster fiat bankruptcy goes. Similar to how banks would crash if everyone went at the same time to withdraw their funds. However as soon as you buy property or anything that can be confiscated it will be capital that's available for them to cover debt.
Just stop thinking about it, fiat works through debt, there's no escape from debt ever in a fiat world, however you now have Bitcoin as an hedge.
It is a good idea. But I don't think it matters to people. Especially those who do not take any loans. But using bitcoin as a means of saving is good, but it can be dangerous because crypto is volatile.
Ok, let's forget for one moment that Banks are also getting money from thin air, when Reserve Banks are printing money. Let's just concentrate on the millions of deposits that are deposited into Banks on a daily basis and that most of this money is borrowed to other people with interest. 
This money is channelled to loans and people pay interest on those loans, resulting in higher debt.
So, when people remove their money from Banks and they invest in Bitcoin, they actually reduce the amount of money that Banks can loan to other people, effectively reducing global debt.
This is why we always tell people not to buy bitcoins with credit cards or loans, because you are borrowing money from Banks to invest in Bitcoin and that increase debt levels again.
Hoarding Bitcoin also stimulate a saving habit and that helps to counter increasing debt levels.
On the other hand, after the person who sells Bitcoin gets USD in exchange for and he does what buyer should not do, because the purchase/sale of Bitcoin is possible with USD. Also, I do not think that credit debts can be reduced by the arrival of Bitcoin. As a result, if everyone has enough money, they do not need credit. Even today, there are dozens of digital money belonging to the loan. This money is channelled to loans
So, when people remove their money from Banks and they invest in Bitcoin, they actually reduce the amount of money that Banks can loan to other people, effectively reducing global debt.
This is why we always tell people not to buy bitcoins with credit cards or loans, because you are borrowing money from Banks to invest in Bitcoin and that increase debt levels again.
Hoarding Bitcoin also stimulate a saving habit and that helps to counter increasing debt levels.
Thank God I am using cash from the start.
I didnt realize this though. I just really hate banks and how they are getting profit from those loans and also investing it with other types of investment like mutual funds and equities.
They give their clients like below 1 percent annually for those who keep their money with them. This is too unfair. Once I saw thru that I stop savings money with those banks.
I didnt realize this though. I just really hate banks and how they are getting profit from those loans and also investing it with other types of investment like mutual funds and equities.
They give their clients like below 1 percent annually for those who keep their money with them. This is too unfair. Once I saw thru that I stop savings money with those banks.
Ok, if you are right, then bitcoin should be accepted in global.
Adoption and acceptability of Bitcoin globally is gradually creeping in because according to OP analysis Bitcoin seem to actually does that based on the fact. Sooner than later as i believe Bitcoin will actualize it purpose and usability. When this happen the world will feel the potentials behind the said project.
So, when people remove their money from Banks and they invest in Bitcoin, they actually reduce the amount of money that Banks can loan to other people, effectively reducing global debt.
Only if the entity you bought Bitcoin from didn't deposit the money you used into one of their bank accounts lol. I see what you're saying, but I'm pretty sure the cash flow isn't as straightforward as that, considering the money you spent ends up elsewhere, which, again, could be directly into a different bank account.
True. A significant number of people currently involved in Bitcoin are speculators who are attempting to grow their national currency holdings. That indeed doesn't help in reducing the quantity of IOUs the banksters get to play with.
But if there ever comes a time in future where things change and lots of people receive their income in BTC and then spend their BTC back into the economy for goods and services, then it would help reduce global debt. But if this is going to happen, it probably won't be for some time yet.
WOW, I never realized this but yes it's true as Bitcoin also is a finite asset and in limited supply as well. FIAT is never ending and inflationary in supply which only reduces purchasing power and technically has wiped out middle classes in many western countries, so now is the time to collect some Bitcoin and I would agree, that it can reduce debt as the fractional reserve banking system is the biggest ponzi on the planet and you all saw what happened to Greece in their bank RUN just a few years back. If everyone now went to the banks all at once and asked for THIER money, the banks don't have it. SO more you put aside in Bitcoin from your wages, it might save you from getting into debt later on when your FIAT money is worth less and less, but your daily expenses are getting higher and higher.
Exactly, it is not just the devaluation of our fiat currency that are putting us deeper into debt, it is also the fractional reserve banking practices that are pulling us down. Greece is the perfect example of this and I will never forget the sad pictures of long queues at Banks, when the country’s banks were closed and a daily cash withdrawal limit of some €60 were implemented at the ATMs.
Will we never learn? The next economic crisis is around the corner and Bank runs like this will be the norm.
- https://medium.com/@jimmysong/bitcoins-path-to-method-of-payment-6cb5b3297268
WOW, I never realized this but yes it's true as Bitcoin also is a finite asset and in limited supply as well.
It also works well with bitcoin, because, unlike banks, wallet providers don't take any of your money to give it to others. There was recently a thread on bitcointalk where the op actually argued the opposite, but I checked the ToS of blockchain.info and some exchanges and found out that they don't do this stuff. It's good that we can't create coins out of thin air, but the problem is that it's not always the case. Some bug in the past already lead to creation of non-existing bitcoins. The dev team noticed them in time and updated the core, but that means that theoretically it can miss something like that in the future, and some coins will illegally enter the circulation and stay for a while. In that case it will be even more important that solid crypto companies don't mess around with coins of their customers. 
That's why Bitcoin was created, because I'm sure the exchange tool must have a fixed total and cannot change in number. Buying bitcoin directly without a credit card will at least ease the amount of debt that already exists. Because debt is only in writing in the banking system, while the real amount is less than 50% of the total debt.
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Neither of which would be a pretty sight. Let's keep in mind that debt is inherent to the way our current economy runs, so it's unlikely to go away easily.
Very interesting idea, this is also what comes in my mind that people need to control their selves of having debt even virtual or banks. But ain't sure if Bitcoin really helps to reduce the level of debt. How about those crypto lending platforms they also offered debt to people.Neither of which would be a pretty sight. Let's keep in mind that debt is inherent to the way our current economy runs, so it's unlikely to go away easily.
Is just us, not Bank nor Bitcoin to help you of debt. Both are helping us, we can withdraw our fiat from converting bitcoin to the Banks.
Where we can buy bitcoin without depositing our money to our bank account? may it is hard thing to do for me. Until now, I just found one of the way to buy bitcoin is through bank account which mean I need to deposit my money it it. In my country there is no bitcoin retailer so far for exactly I can buy bitcoin with my money cash.
Conceptually, I got your nucleus on this thread and I agree with it, the banks just will make someones having many debt in their live and the government only made it happened with no solution. The banks only make everyone miserable, just give an education that having debt is aim of human life in the world. I don't like the concept of the bank as a whole honestly but the bad thing is I'm one of the booster who keeps the bank branch out least likely by having a bank account and lay away my money in it, an actual hypocrisy.
Conceptually, I got your nucleus on this thread and I agree with it, the banks just will make someones having many debt in their live and the government only made it happened with no solution. The banks only make everyone miserable, just give an education that having debt is aim of human life in the world. I don't like the concept of the bank as a whole honestly but the bad thing is I'm one of the booster who keeps the bank branch out least likely by having a bank account and lay away my money in it, an actual hypocrisy.
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