Topic: Could Bitcoin become the cause of the next financial crisis? - page 2. (Read 344 times)

THERE IS A POSSIBILITY THAT IT CAN CAUSE FINANCIAL CRISIS IF MAJORITY OF PEOPLE WILL USE BITCOIN INSTEAD OF CASH. That way, there will be more demand of Bitcoin instead of cash. If it were not that way, I do not think the existence of Bitcoin per se may cause financial crisis. Bitcoin, as of writing, still needs so much development before it can even be at par with cash. We have to consider the transactions, fees, price volatility and many others. As you can see now, more and more people, not to mention big companies, are banning Bitcoin advertisements. This, alone, is one proof that Bitcoin is not ready to take on more users and vice versa. I still think the only way to help improve Bitcoin is to create a system that works for all. Having said that, while there is a possibility for Bitcoin to cause financial crisis, I do not think it is anytime sooner.

I don't think it will cause financial crisis because the price of bitcoin keeps increasing in long term even the price is too volatile at short terms.But people keep saying the burst will occur soon but this is the crash which are caused by many rumors now the price keeps increasing.

we may be close to such a financial global economic crysis. But bitcoin is not the cause of this, on the contrary bitcoin is the result of the current unbalanced financial system with so many problems in it. I do think bitcoin and cryptocurrencies are threat for banking system and will affect in the end, this process may cause a crysis eventually. We will wait and see what happens

I say yes, Bitcoin can cause the next financial crisis. Why?

Not only that the amount of money you invest is unregulated, but also the exchanges.

Previous financial crisis like the 2008 recession by the new mortgage system is an example.In the old system, when a homeowner paid his/her mortgage every month, the money went to his/her local lender. Since mortgages took decades to repay, lenders were careful.  The new system is more complicated and it has 4 players. Homeowner, lender, investment bank, investor. In this system, lenders can grant any kind of mortgage, because they are not getting paid anymore by the home buyers, so they don't care.
Investment banks don't care either. They get commissions on each product they can sell to investors. The more mortgages, the more products. The more products, the more money to bankers. What happened? So many loans were given to people who could not repay them and with so many billions invested in this financial instrument that was based on house mortgages, the effect was catastrophic.



(c)https://www.quora.com/Could-Bitcoin-become-the-cause-of-the-next-financial-crisis

Bitcoin is so much worst. As i have said. Not only the the market is not regulated, but also the exchanges. But if you ask if bitcoin will pose a financial crisis now? NO. Everyone knows that bitcoin is volatile and it is unlikely to receive a monstrous amount of money like in the housing market. Bitcoin have received so much speculation, but as you see, as of now, bitcoin or any other altcoin is not that bad of an investment. It may be a bubble or a stepping stone. It may cause a crisis, but as of now, it will never be much worse than the 2008 recession.

Can not, because bitcoin is not related to it and the different paths that make it unrelated to the financial crisis.
bitcoin is different in the world so even if your country is in crisis, bitcoin does not affect what is happening in your country.

Bitcoin can't possibly become the cause of financial crisis from one country to another because bitcoin is decentralized and we know that other country doesn't include bitcoin as a contributor for their economy.  Also,  it is produced to mined to make a lot of information regarding crypto that eventually will make every bitcoin user gain a specific amount of money or invest with bitcoin

There is possibility that it may become the next "Wall Street".

 Will i think bitcoin will not gonna causing the financial crisis instead he help people to be rich.its so ridiculous that bitcoin is the cause of financial. I think they just spreading a wrong news so you will be panic selling. Many people are now rich because of bitcoin.

Bitcoin is saving financial crisis and bitcoin is real price and real value for money so it is saving the world

Yes, but only when BTC is 1M$.

i dont think this is possible, but i don't know. maybe someone will enlighten us and write more to this question. i found this is a good question and i want an answer too.

In my opinion, bitcoin can't be the cause of the crisis. It was created precisely to become independent from traditional finances. Bitcoin has no impact on the economies of countries, but only on improving the finances of individual people.

In my opinion, Bitcoin may become a threat to many weak economies, which is unavoidable when there are many places where there is an early economic boom in which they face a crisis of fluctuations. Bitcoin is currently on the banned list in many countries

bitcoin couldn't become cause of financial crisis.. many factors could be the cause of the economic crisis but it is not related to bitcoin, for many countries the financial crisis usually can be caused by dependence on foreign debt and uncontrolled inflation.

It is a very interesting question that you pose. They say, that the true insight comes from the ability to pose questions, not from giving answers

So it really made me think. You may compare bitcoin to gold, and that comparison is sound in a lot of ways (limited supply, store of value, etc.) and unsound in others (bitcoin is much more abstract, you cannot weigh it in you hand, you can't make a nice ring out of it), but for the sake of this discussion let us make that comparison and go forward.

Well, gold has never been the reason for crisis. Rather, gold was the escape from crisis and a way for one's wealth to be preserved. If you were smart enough to have gold, then you were kind of immune to the price hyperinflation and misery all around you, and after the crisis is done you emerged even stronger than before. But as far as my knowledge goes, gold was never the cause behind the crisis.

Bitcoin is something like that too. I don't think that it with its price fluctuations can cause problems. Rather, the price fluctuation and its rapid growth is an effect of general instability in fiat pseudo-currences and debt fueled economies. I think that it offers a way to escape and preserve your capital. This is maybe why its value should not be denominated in fiat currencies, rather it should be considered as inherently valuable.

WHEN — NOT COULD!

The question should be WHEN?

The demand for cash on all global markets is constantly growing.
Our current economy is based on creditism. [1] We need to keep printing dollars... if we stop printing dollars the economy falls into recession.
If we continue to print dollars, history proves that the currency will eventually devaluate.

Could Bitcoin become the cause of the next financial crisis?