Topic: How can the global crisis affect crypto? - page 21. (Read 19847 times)
if there is a global economic crisis,i think the price of cryptocurrencies especially bitcoin will surge.The reason being that people will prefer digital currencies to fiat because of the crisis,so they will buy cryptos with the fiat to serve as a store of their value until the crisis is over during which they can have their moneys back.
If the global economic crisis happens which is not likely to, then money will stop flowing into the cryptocurrency market and the market will either crash or operate on side way levels. Also, a global economic crisis will bring about many regulations and bans and stop many new participants from taking part in the cryptocurrency market at large. Is a dangerous situation if it ever happens.
That’s actually a very interesting question and i hope that others will also share their views.
Let me start by talking about the hierarchy of money. Whether we want it or not, we are still, to some extend, on a gold standard schema (banks have to have reserves at the Central Banks).
For starter, the money you have on your bank account (deposits) is nothing else than a promise (from the bank) to give you currency whenever you want (bills/coins), and currency is a promise to pay a certain amount of gold (or FDR). This is why when a crisis hits (or volatility starts to increase), the price of gold goes up (refuge).
So the question is to know if a cryptocurrency is implicitly backed by gold or not. If it is, then it is nothing more than a deposit (promise to pay currency → promise to pay gold or FDR). The same mechanisms and effects would apply.
If the cryptocurrency is not implicitly backed by gold, it would mean that this is the ultimate money(the highest level of hierarchy). It requires a really strong level of confidence. Which is why i would eliminate that possibility.
Cryptocurrencies would (have to) find their place within the hierarchy. One interesting feature is the ledger (blockchain), which brings openness, transparency, security and speed. It has some limitations.Cryptocurrencies relies on the internet and computing power (to mine). Attacks are more likely to come from the cyber space and we could definitely imagine some scenario where those currencies would be at risk.
Until now, cryptocurrencies have been really volatile and weakly correlated to the use case: value tend to increase when more use are created and tend to plummet when use is limited (we’ve seen it with Bitcoin, following some decision in China or from the FED).The HUGE advantage that i would see is that cryptocurrencies travel faster and without borders. If a recession happens in one country or one region, i would expect to see the cryptocurrency act as a refuge (easier to transfer capital). I would also expect that to happen in case of a global crisis (the intensity of the crisis will not be equally distributed).
Another factor is that cryptocurrencies are, for now, a micro-niche. Very few people know about it or own/use them. In my entourage, i’m the only who ever had Bitcoins and was considered “a crazy freak”. It is more “widespread” in China for example (because it is a way for them to have assets outside of China).
Let me start by talking about the hierarchy of money. Whether we want it or not, we are still, to some extend, on a gold standard schema (banks have to have reserves at the Central Banks).
For starter, the money you have on your bank account (deposits) is nothing else than a promise (from the bank) to give you currency whenever you want (bills/coins), and currency is a promise to pay a certain amount of gold (or FDR). This is why when a crisis hits (or volatility starts to increase), the price of gold goes up (refuge).
So the question is to know if a cryptocurrency is implicitly backed by gold or not. If it is, then it is nothing more than a deposit (promise to pay currency → promise to pay gold or FDR). The same mechanisms and effects would apply.
If the cryptocurrency is not implicitly backed by gold, it would mean that this is the ultimate money(the highest level of hierarchy). It requires a really strong level of confidence. Which is why i would eliminate that possibility.
Cryptocurrencies would (have to) find their place within the hierarchy. One interesting feature is the ledger (blockchain), which brings openness, transparency, security and speed. It has some limitations.Cryptocurrencies relies on the internet and computing power (to mine). Attacks are more likely to come from the cyber space and we could definitely imagine some scenario where those currencies would be at risk.
Until now, cryptocurrencies have been really volatile and weakly correlated to the use case: value tend to increase when more use are created and tend to plummet when use is limited (we’ve seen it with Bitcoin, following some decision in China or from the FED).The HUGE advantage that i would see is that cryptocurrencies travel faster and without borders. If a recession happens in one country or one region, i would expect to see the cryptocurrency act as a refuge (easier to transfer capital). I would also expect that to happen in case of a global crisis (the intensity of the crisis will not be equally distributed).
Another factor is that cryptocurrencies are, for now, a micro-niche. Very few people know about it or own/use them. In my entourage, i’m the only who ever had Bitcoins and was considered “a crazy freak”. It is more “widespread” in China for example (because it is a way for them to have assets outside of China).
What do you think will happen to the crypto market if there is an economic crisis around the world?
This topic is very interesting for me, so I would like to hear your thoughts.
I think that people will be disappointed in paper money and will start investing their money in crypto currency. Then the crypto market will start to grow again and we will count on crypto in the stores. This topic is very interesting for me, so I would like to hear your thoughts.
they will exchange their crypto to fiat because of crisis. holding your own money physically is the best thing to do. crypto is not yet widely accepted and most people still use fiat.
What do you think will happen to the crypto market if there is an economic crisis around the world?
This topic is very interesting for me, so I would like to hear your thoughts.
People are rushing to cash out their money. But i think that just give a little impact to the cryptocurrency. As you can see that about the fact it has already happened last year and it didn't even give an impact to the cryptocurrency, I guess the crypto is different and it can't be affected by the global crisis. This topic is very interesting for me, so I would like to hear your thoughts.
I think the financial crisis will lead the cryptocurrency market into a secular bear market.
Because crypto-money markets look like stock markets at the moment, the financial crisis has hit stocks hard.
Because crypto-money markets look like stock markets at the moment, the financial crisis has hit stocks hard.
What do you think will happen to the crypto market if there is an economic crisis around the world?
This topic is very interesting for me, so I would like to hear your thoughts.
In my opinion, the global financial crisis will raise the cost of at least the most popular crypto currency, especially Bitcoin, because people will start looking for a new place for investment instead of precious metals. This topic is very interesting for me, so I would like to hear your thoughts.
to altcoins? nothing
to bitcoin? it will most probably rise up a lot but not as much as you'd expect.
you see in case of a financial crisis around the world or any other sort of crisis that affects economy, people will start looking for a way to store their money in a way that they don't lost its value but at the same time they would want some sort of security too.
altcoins are high risk with low security and low reward with a good chance of dying and disappearing because of a bug in them. it certainly has happened a lot in the past to scare people off.
as for bitcoin it is high risk but it is high reward also and with highest security possible. so it would be a safe place to go to but people still prefer things like gold that is why i said not as much as you think.
to bitcoin? it will most probably rise up a lot but not as much as you'd expect.
you see in case of a financial crisis around the world or any other sort of crisis that affects economy, people will start looking for a way to store their money in a way that they don't lost its value but at the same time they would want some sort of security too.
altcoins are high risk with low security and low reward with a good chance of dying and disappearing because of a bug in them. it certainly has happened a lot in the past to scare people off.
as for bitcoin it is high risk but it is high reward also and with highest security possible. so it would be a safe place to go to but people still prefer things like gold that is why i said not as much as you think.
What do you think will happen to the crypto market if there is an economic crisis around the world?
This topic is very interesting for me, so I would like to hear your thoughts.
One of the reasons Bitcoin created is probably because of the global crisis of 2008. We have not seen any real effect, but I think many stock market players might be taking cover on crypto, especially Bitcoin. This topic is very interesting for me, so I would like to hear your thoughts.
Crypto market is very strange and not necessary correlated to traditional financial market, so if there will be a global crysis it's not certain that also crypto market will suffer because the biggest coins like BITCOIN and ETH could be a good alternative to $ or EUR.
That is true but the problem is not everyone has Eth and bitcoin as of this moment of 21st century 60% is bitcoiner while 40% of the household is living in normal life like working in a factory or other decsent job. Maybe if their will be a global crisis BTC and ETH will run in their own path way.
The crypto would definetely go down, especially ICOs and new projects would be affected very negatively but as for bitcoin there would be no change, its price can change, it would still succeed.
I think in the event of a global economic crisis, people will see in the crypt the way of investing and avoiding the loss of finance
It is worth noting that the last economic crisis in 2008 led to the emergence of cryptocurrencies, I do not think that the next crisis is able to kill the crypto world, if people lose confidence in fiat money then the whole world will turn to cryptocurrencies))
No matter how many markets exist in the world, in which they are, the economic crisis will overtake everyone, including the cryptocurrency market.
Crypto market just like any other financial market do gets affected by any financial crisis. IF there is a crisis and people pull their money out of the market, be it fiat or crypto, it'll go down. And we already are witnessing it. Arent we ?
No idea honestly. Cryptocurrencies could become more valuable if you ask me. Just look at countries like Zimbabwe where people are already depending on crypto for survival along with FIAT due to the economic crisis that they are currently facing. Heard that Bitcoin was more valuable in Zimbabwe sometime last year when compared to its international value which goes to show how popular Bitcoin truly is. I feel that the major cryptocurrencies like Bitcoin and Ethereum will rise while the shitcoins will disappear just like that.
What do you think will happen to the crypto market if there is an economic crisis around the world?
This topic is very interesting for me, so I would like to hear your thoughts.
It will affect the crypto by people invading us and scamming this industry because it will give a big impact here in the industry. This topic is very interesting for me, so I would like to hear your thoughts.
In my own opinion, I believe that if there is a global crisis, this will help to increase the crowd in crypto as many people will want an alternative means to get money and I believe that is cryptocurrency.
If there is a crisis in the economy, then people will not have money to invest in cryptocurrency. If no one will invest then the price will not rise.
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