Topic: Bitcoin getting in to economic crisis (Read 1763 times)

I certainly agree about Greece (we should not forget that it doesn't have its own currency), I don't know much about what happened in Asia in the 90s, but in Russia the authorities being in the state of technical default on their international obligations had devalued the national currency a few times (3 to 4 times, to be precise) in a matter of days in August 1998, approximately at the same time when the Asian tigers had been quickly falling (Indonesia, South Korea, Thailand, etc). Surely not something that you would call austerity. So it seems to depend upon how much the global elites can force their will onto a given government...

On the other hand, Greece seems to be a textbook example of such economic "enforcement"

you can never give an answer like this to a general question.
the correct answer is "it depends" and in fact we are all acting that way too, but I don't know why people say I would buy or sell if blah blah happens!
sometimes bitcoin goes down because there is a panic going on like the recent hack, this can only cause a little dip. but your scenario needs a gigantic dip which can only mean something gigantically bad should happen to bitcoin like a flaw in which case nobody will ever buy bitcoin again.

it also works the other way too. if there is a slow rise like the normal past year, then there is no reason to sell unless you need the money. but if there is a bubble like the $780 then the only wise thing is to sell and buy back after the drop.

It will come down to what method the authorities decide to use to 'solve' the problem.  In the periphery of the world, e.g. Greece recently, Asia in the 90s, and Latin America pretty much all the time, the global elites tend to force pure austerity onto the population.  During the Great Depression in the US (the top of the world system,) a combination of deflation, stimulus, and devaluation against gold was used.  During the 2008 crisis, the tools were almost exclusively stimulus and (de facto) devaluation against gold.  The bottom line is that people are kept in more comfort nearer the top of the system, since the elites can't afford to generate too much anger among democratic populations.

The big deflationary effect on financial assets tends to be limited to real-economy assets, e.g. equities, real estate, industrial commodities, etc. because of the expected lack of economic demand.  Money-class assets like cash and 'safe' government bonds that are issued by the state may be torn between the two forces of appreciation (by hoarding -- saving money instead of consuming/investing) and devaluation (by inflationary government stimulus.)

Money-class assets that are not issued by the state will be sitting pretty -- I think saver demand will outpace liquidation to buy food, etc., since there will still be a lot of financial assets of all types out there that people want to convert into these assets (remember what started the whole crisis is an overflowing quantity of all types of financial assets, typically concentrated among a minority of rich people.)

That is very good action. I also bought some this time last year. The price has risen 100%, but I will keep them for longer.

I have bought a few bitcoin in 2013 and 2015. I have hold most of them since then. I just used some in the mean time.

I always think about this. Some people say if the bitcoin price goes down to 1$ then I will buy as many as I can afford, some people say if the price drops down to 1$ after all of this then it means there must be something wrong and definetly should be stayed away.

I realized I am in the middle of it. I will not sell everything I own and buy bitcoin if it drop down to 1$ but I will probably buy at least 100 of it. I think bitcoin won't decline that much, the price is what people say how much it is. Instead of fiat where goverments and finance sector decides how much 1$ is worth.

Why bother for new exchanges, let us concentrate on the old an trusted exchanges, as trader that should be our main concern and priority now, even with what happen with some major exchange site got hacked, we still need to continue trading and make money.

Not true, mtgox, cryptsy, vircurex were all trusted sites from day 1 and then suddenly fucked everyone over. Yes it did affect the price but it didn't hurt alt coins or bitcoins on the whole because old exchanges that had been around for a while became the new old trusted ones. Face it we still live in a world where none of the exchanges are entirely "SAFE" and everyone is still trading and keeping the economy of digital currencies alive successfully. Its a Miners dream because no matter what happens the will to make this work is stronger than the damage whatever fuckup causes and people who got into mining early and have the best equipment get to just keep mining and creating money from nothing. the only thing that will kill BTC is when the adoption level eventually becomes high enough that the speed of a transaction becomes too slow to compete with other services that already exist. At that point another coin will take over right where it left off. BTC and Digital Coins are here to stay!

New exchanges might pop up, but that doesn't mean that anyone is going to be using them. There has to be some trust involved and chances are the exchanges are going to need some existing market share, and thus it means that the existing exchanges get more business and the new ones just kind of fade into obscurity at some point. They don't really mean anything and no-one really trades on them.

even if every exchange site and wallet that currently exists had a security breach over night new ones would instantly pop up to become known as the new most secure source of btc trading, there is no economic crisis bitcoin goes up and down in value, its doing what it does.

I think the problem of nowadays is not in bitcoin. The problem is in security of different sites who suggest users online wallets and exchanger services. But bitcoin surely can affect on economic crisis. Bitcoin even can provoke it.

that's the thing as long as it doesn't happen, the coin can go up and down in value over and over and miners can keep pulling money out of their machines, BTC is not in any trouble at all its moving very status quo, while the people who make money off it are making it. Its kind of like beanie babies if beanie babies took forever for the scam to play it self out and if millions of people aroudn the world started accepting beanie babies as payment and opened up exchange sites for them. Even one of the largest Bitcoin trading sites to have ever existed (granted it was a disaster in the end) was MTGOX or (Magic The Gathering Online Exchange)

listen it was never a sound long term investment in the first place but its proven that through this theory of regular commerce the tulip trade can exist in an online world very successfully. It might not be BTC per say but this will always exist now and currently bitcoin is the clear front runner for the immediate future. essentially if the price drops buy and you will likely come out ok if you hang on long enough and this will happen probably a bunch more times until the one time it finally never comes back up again, which who knows how many pumps will occur between now and that time... IF that time ever even comes

The mass adoption of the scale you imply won't happen overnight. I guess there will be enough time to make the required adjustments to keep up with the growth in Bitcoin usage...

If it ever happens, of course

Even if all major transaction sites were hacked and the best exchanges shut down, new ones would pop up instantly because people would clammier to be considered the most trusted sources in bitcoin, the only thing that will stop Bitcoin is when mass adoption eventually breaks it because the transaction speed becomes too slow, this is already a proven fact guys. until that happens it will be considered the standard in digital currency!

We don't know what will be the price of bitcoin in few months but 1k value for now its hard to say that the price of bitcoin will reach in this level.
The only crisis we are experience right now is from bitfinex that result for the price to go down but the price of bitcoin right now is good and still kicking looks like the price already hit 600 value..

The price had been going down gradually even prior to the Bitfinex hack. Now we have around 120,000 bitcoins pulled out of trading but the price rose only to ~$600. The amount stolen is quite big in proportion to the amount of bitcoins actively traded right now to substantially affect the trading volumes...

So, if the stolen bitcoins don't enter the market again in the nearest future, the hack should in fact prop up the price to a degree

bitcoin is not going to suffer for sure, the economic crisis only might happen for fiat

Guys recently it was proven that if bitcoin was ever adopted by the masses as a major internationally accepted currency it would break bit coin, the transaction speed would be so slow, it would no longer be the most efficient and it would stop being used, this will happen one day and the question you should all be asking yourselves is which coin will replace it.

Bitcoin is what it will always be until something newer and better actually replaces it, its always goin g up and down due to a number of circumstances and currently there is no reason to believe its in any kind of crisis.

In economic crises (of the Great Depression scale) money (especially cash) usually gains in value since people start liquidating other assets which become cheaper or just worthless. Since Bitcoin can be considered as both a currency and a financial asset, the overall effect is hard to predict. On the one hand, some people will have to sell their Bitcoin stashes to get the money with which they can buy food and pay the bills (for example, if they start losing jobs due to a crushing economic crisis). On the other hand, some other people, which are more wealthy and better off overall, may decide to rebalance their portfolios in favor of Bitcoin...

Since it is almost a given that governments will start printing an endless amount of money in an effort to arrest (or at least to alleviate) the consequences of the crisis