Topic: Debt and Crypto? - page 2. (Read 935 times)

Investing in stock market doesnt guarantee you profit. There are still losses in any investment adding to that investing in stock will take you along time to see the ROI or profit while if you invest in crypto currency there is a small chance that your investment might double.

There is no guarantee when it comes to investing no matter if its stocks or other form of investment.

I see debt as being a slave to the government we all decided to put there and the worst part is that we fall for it so much and we end up keep enriching the banks with the so called interest. Probably, they would rather prefer the lower classes to remain there and not liberated until they are so debt ridden and they keep winning up there. Debt sucks and I see debtors as those who are just trying to live a life they cannot even sustain and that even sucks more. Like Richard said, if you do not have anything, you do not buy anything.

Well, relating that to the supply that you mentioned, in that case, I want to assume that the finite supply may not be a real problem as there must have been a huge demand for the banks to have even experienced being threatened in the first place and we all know how adoption would have been like for the bitcoin's value.

I am sure there should be enough in satoshis to probably go around, or maybe even if there is not, like you said, other cryptocurrencies may come to play. I really do not like assumptions anyway, but let's face it, I do not see cryptocurrency would throw banks to the garbage; they will not stop existing one way or the other and blend with the evolution.

You are stating two different versions of financial system, conventional system or banking system is different form financial system comprises of purely digital currencies/assets.
Unfortunately our conventional economic system doesn't support a currency with having finite supply and without debt.
As far as we are living in this conventional financial system, digital currencies can't take over the fiat or banking system, this means more awareness and user support is needed to implement digital financial system and to get rid of the banking system.

Obviously, I would not expect a currency from the banks to be decentralized. Moreover, each bank cannot just decide to start launching their own cryptocurrency since they have a central bank that regulates the whole thing, so in that case, I can see government coming up with something and letting that roll out for anyone who may want to borrow.

One thing I have known is that things always do end up rectifying themselves in the long run, and worrying about banks being discarded is something I don't see happening.

I think it is a big risk if you will incur debt just for cryptocurrency. There are a lot of investment opportunities and I would recommend that you invest on stock market as it is safer and more guaranteed.

Not necessarily. It all depends on the person itself, and the understanding of the market he is investing his borrowed money in. There are enough examples of people having lost their mortgage funds due to bad decisions.

I personally find taking out loans for investment purposes to be the most stupid and mentally retarded thing people can do. Especially in case of a mortgage, or even a second mortgage, you'll be in debt for life if things go wrong.

People only think about the positive aspects of investing, which is just stupid. Investing with borrowed money contributes to you experiencing heavy pressure, mental instability, and to some extent carelessness.

People quite often tend to take more risks with capital that isn't theirs, which is actually weird, because you would expect these people to be more careful with money they borrowed due to the potentially negative consequences.

I don't think that banks will be totally wiped away even when bitcoin is assume to begin to play the role of banks because banks provide a third party service which bitcoin is not known for but p2p. Banks can adjust to certain operational function to accommodate the use of bitcoin particularly in huge business transactions.

I do not think this is a good idea, although Debt is a decisive factor in the development of the economy. But essentially crypto and Blockchain technology are anonymous technologies, and we do not know who owns the Debit token. I think we have to have a different technology to help us understand who owns them if they want to grow based on crypto. But this is really hard because no country is researching, developing or promoting them so this is unlikely.

in a way, crypto is the opposite of debt. it represents freedom from the bondage of work and debt.

actually when we say banks are evil and afraid of crypto... it is half true.

Commercial banks have no fear of crypto as they are just intermediaries and they make money with credit.

So whether the world is using USD or BTC, there will be people who will need to take out loans and credit.

This is how banks will make money.


The real BANKs that is afraid of crypto are the Central Banks, as central banks are the ones who are controlling the
supply of money and interest rares. They have power over their country and economy as they control how much money
is available and whether people can get cheap loans.

With crypto, they have not control at all.. thats why they are worried.

Back to the main topic, debt is a good thing. We all need debt and using crypto as the underlying asset for debt instruments will
be a natural thing when crypto becomes widely accepted.

For banks, all the crypto currencies are seriously one of the biggest threat and that they are very much afraid of them as most of the people have started opting for crypto currency other than relying on banks and above all, crypto is also helping the investors in having greater profit too.

If someone is taking a loan from bank in order to invest that money into bitcoin or other crypto currency, he surely will be able to make huge money out of that.

Huge poison and I do not agree with the OP saying that people cannot do anything without having to borrow or be indebted to the banks. The banks have always decided to make everything pretty difficult with their monopolies and manipulations which I want to believe is what has affected the middle and lower class till date in having to live life of debt. One way our own government and banks have decided to enslave us.

If banks phase out, I really do not care what happens, the most important thing is that blockchain technology at large as brought the freedom.

Indeed, people with credit cards use it to purchase bitcoin but since then some credit companies closed their ties with cryptocurrency to avoid being used as passage to cryptocurrency. Though this is not illegal, the companies cut ties because of the volatility of bitcoin and other cryptocurrency which could possibly lead to bunkrupcy.

In my opinion bitcoin will not replaced a currency or replaced any bank because bank served many purpose, in case of bitcoin thrive and the "old transfering system using the bank collapsed" the government might think a better way to work with bitcoin, perhaps by creating their own blockchain or even work to becoming a bitcoin exchangers which also gaining the fee from every transactions. Example of this; we can exchange currencies not only in the bank but also in money changer. So there is also possibilites that we can use bank to exchange coins and do transactions with their systems. So thats one case solved for bank to gain profit in this.

An economy wont survive without debt instrument and bonds because that is one way to gain investment to expand business and improve economic growth of a country. And that is why bitcoin won't be considered legal yet since the government still trying to find a way to pressure the price. High volatility is making price unstable to become an investment, even if the supply is limited it can be still be used to replace bonds only if the price is stable just like currency. Paper money was printed based on gold reserve a country hold. Look at Feds keep doing Quantitative easing and printing money while drowning in debt. Based on that the supply is unlimited but the value keep decreasing overtime however it can maintain "stable decrease" overtime not an "overnight fallout" like cryptocurrencies

I don't think that cryptocurrency being used as a payment for debt a good idea because first of all it is volatile. Anyone owing Bitcoin is at an disadvantage they might be paying more in the next month compared to what they have previously paid. Also there are no possible scenarios where Bitcoin will become an official debt instrument as our own respective fiat currency is protected by law. For me personally I would rather owe something based on Fiat currency rather than be paying Bitcoin back for something.

Bank will never want bitcoin to solve becouse bitcoin will not allow them to keep debtors under their evil debt management that has keep many people and countries that are now in debt. Many debt instruments will be obsolete when cryptocurrencies is well established and developed.  If bankers are allow to have they ways they will kill bitcoin and cryptocurrency becouse that is the only force that can but they criminal activity to an end.

We have 100m sats for a single bitcoin and that in itself is a whole lot and considering how things must have changed to see banks being phased out, that means adoption would have been huge and realistically, having a satoshi being equivalent to $1 could be possible, so, having limited supply to go around for debt may not be an issue.

Even though, I believe banks cannot just disappear into thin air, considering they will find ways to still function as a bank, irrespective of how technology has changed. It is an evolution of currency and adaptation should not be a problem for banking institutions in the long run. Worst that would happen is that, being a regulated environment, each country may come up with their own centralized cryptocurrency, banks using it and then see how that goes.

I do not even want to go into the debt part as that is more like the banks and government fashioning a way to enslave us all, so whether the ability to borrow is in play or not, that is not a concern for me. Why live a life you cannot afford or maintain anyway?

Desperate to get into bitcoin, investors slip into debt. ... Some investors are taking dangerous risks to get into cryptocurrencies. Roughly 18 percent of people who buy bitcoin use a credit card to do so, according to a new survey by loan marketplace LendEDU.

This isn't exactly true. Banks can't create money at will, and they only do so in relation to demand for loans. The money supply increase because of the loans, not because the bank has created extra cash. Only the Fed can print extra currency, and they do so in relation to how much banks increase the money supply through loans to try and keep the ratio of physical currency to digital fiat steady. For regular banks to increase the money supply, the demand for loans has to be there first, the bank can't create loans if no one wants them. Also, by law the banks have to keep a minimum amount of reserves, so they 1) only create loans to match demand, and 2) only are able to create as many loans as able while maintaining the required reserves.

One would expect that when demand for loans is high, banks would have to offer higher interest rates to entice more people to deposit money so they could make more loans without falling below the mandated reserve amount.