Topic: Impact of Italy's crisis on the Bitcoin price? - page 2. (Read 764 times)

I certainly think Italy can cause a contagion effect on Crypto and the price of alot of things.   We all know crypto is quite a speculative market based on the idea of this high growth, new area of economy that proposes but has not come close to replacing parts of the old economy.

Here we can see from a chart Italy is one of the worlds most unstable economies in terms of its debt loading.  The government is almost eclipsing the legitimate private economy with its possibly bad debts which impairs their standing in EU and within the EURO.    This debt is not secured over the long term but can react badly within quite a brief period of just a few years I think.

My experience of finance dates back to when 10% interest rates were common in western economies not the tiny amounts we have now.   If this situation were to occur again as is perfectly probable, it would be a cold winter that covers europe and most of the world and anything finance related will suffer much harder ground when attempting to make progress and grow.



https://tradingeconomics.com/india/government-debt-to-gdp

Although Italy is also the world's ranking. But it is not enough to influence the team's cryptocurrency. The ability to influence cryptocurrencies must be joint action worldwide. This has such a bitcoin to take off. Or the common action of the top three in the economy.

I do not think italy is THAT big and has that much impact on the world. It is one of the bigger countries in the world but honestly comparing the 2008 crisis which was caused by the leverage of house mortgages in USA, italy doesn't have that type of power.

I think even if it affects it a little bit it won't be anything different than the regular volatility we have, so if the price drops like 200 dollars because of it than we wouldn't be shocked because 200 dollar worth of changes always happens in bitcoin and the volume won't be that much lower or higher considering the italian people do not make the bulk of the volume anyway. It is a bigger deal in countries like USA and China and even maybe Japan because they are so into it. Hence I think we will not even feel the difference.

Thats not quite true, gold has a security risk to it (and cost).  There is a risk of confiscation, even in USA gold has been taken away by government with some compensation but still it was to the disadvantage of the population holding hard assets like that.
Bitcoin has a more global stance which gives some advantage so that 1 citizen in 1 country is not so easily isolated to a situation of purely where they are located.   When we have a global economy and digital one even this makes more sense, obviously some costs will always be local so I never think in terms of just one currency or type even.


Problem is we suffer consequences of choices made previously, even before we were born in some cases.   The Greek problem dated back to previous governments and debts with false accounting they used to enter the EURO under false pretence.
The Greece problem should have been unwound with some defaults, the debt was bad and untenable.  Instead the debt will be paid by the wages of those who were not alive when it was taken out.  Its a failure of capitalism

Nobody (directly) sees these problems driving up BTC prices, the main reasoning I think is the failure of FIAT and its ability to regulate its spending and controlling supply of new money used to pay debt like this.  Overall this leads to weakness in that currency standard, it appears a self regulating currency like BTC is superior in comparison at that point.  Thats part of the price at least, there is a range of alternatives to EURO or any value exchange, each has their advantage

They dont have to but either way represents volatility to what was thought of a fixed standard.    Governments failing to balance budgets is a source of imbalance that eventually must be dealt with.
The proper route would be default, its the quickest and cleanest way to acknowledge loss and attribute correctly where that loss occured.   However money printing seems most likely politically

BTC is more easily transmitted value then either of those you mention.  Real estate is also a form of liability often, maintenance and costs are there and usage and land value varies with economy with prices bid up quite high right now probably

Maybe the biggest impact will be because of all these events happening at the same time? The overall worldwide economy is at it's most unstable times since the "acknowledged" crisis in 2008.

If Italy crisis, i am believe it will creating world crisis again like Greece. I think it will creating distrust on financial system and maybe investor will see alternative investment like cryptocurrency and if this happen, it will bring cryptocurrency to next level

Yes Bitcoin is world decentralized cryptocurrency and it was under the control of any country but there are some countries which Bitcoin market will be affected if they have economic crisis due to their level of crypto friendly and adoption. Mind you, the EU are among the countries.

Bitcoin's price won't be affected by any county's economic crisis because bitcoin is not under control by any country. Bitcoin is decentralized. Its price is determined by its supply and demand. It is more likely that whales have an impact on bitcoin's price.

Will be no impact at all
Italy is everyday crisis
Much bigger problem for EU is France what economy is dead
french people have big social expectation in fact France is socialism and now only 19% of french are supporting Macron
There is strike after strike in France public sector

Much bigger impact on any asset price may have current trade war and relation between USA and China

best take i've seen all day.


did it, or is this just selective memory? greece received bailout loans in 2010, 2012, and 2015. bitcoin had been in a long term bull market this whole time. is it really appropriate to link the events?


agreed. if anything, it seems to broadly correlate with the stock market, which indicates to me that the bitcoin markets might operate along similar "risk on/risk off" cycles we see in equities. that would mean quite the opposite of a safe haven asset.

If I remember correctly, Bitcoin received a small boost during the events with Greece, but Bitcoin was also very small compared to where it is now. So, we might see some speculation around such events, if they will indeed happen, but I wouldn't expect anything big, because Bitcoin now is harder to move, and many people have learned over the last years that Bitcoin doesn't correlate much with any economic problems in the world, despite people telling that it's a safe haven asset.

The Italian "crisis" is only an electoral maneuver. They will do a bit of theater, a bit of skirmish, then you can be sure that the rulers will obey the wishes of Europe.
In any case, the effect on bitcoins will be irrelevant, or - possibly - positive.

In case of a strong crisis, people can start looking for a new place to invest, and come to cryptocurrencies.

I agree with you . Bitcoin may be a major risk for next year's financial year. But as the global financial markets are reeling, bitcoin is finally beginning to see the light of day again, and it could just have something to do with the fact that a potential threat to the euro highlights the benefits of a decentralized currency like bitcoin.

I talked a few times here about the agony with the banking system in Italy. And here is the problem.

It's going to be a huge crisis, the one in The USA in 2008 is nothing compared to what this one could be; With a lot bigger impact on the worldwide economy.
Secondly, E.U. helped Greece with millions of euros, the last payment was like 3 months ago only. But Europe has no money to do the same if Italy faces a crisis, and here is the real problem. Italy isn't alone the next could be the DeuctchBank in Germany (one of the leaders worldwide btw)

Sure it could be an open door for Bitcoin if it's able to show more maturity than currently (I am not talking about the market)

The impact of the Italian crisis on Bitcoin is negligible. It is necessary to know that cryptocurrencies have their own way of growth. The current decline is to release the once-high rise. I think it is an economic power to influence the price of Bitcoin, and the top three in the world economy have a deadly influence.

of course they will invest in commodities that are real and contain little risk, therefore gold and property are choices. and i think it's unlikely that they will invest in cryptocurrency, because it invites a lot of risks

It doesn't need to be the italians that start buying Bitcoin. A big Euro crisis will quickly spread across the globe with overall market uncertainty, and Bitcoin is a global phenomenon, so there will be endless reasons to buy and hold some for a ton of people out there. That is what's so cool about Bitcoin, it's global and neutral. Gold is stuck where it is, you can't really move it around as they will stop it on borders. Real state is obviously stuck where it is physically, so as an italian I wouldn't be looking forward to buying real state. I think Bitcoin will be an awesome buy an hold, specially after Bakkt starts allowing a reasonably safe way to buy and hold for the technologically incompetent.

The European central bank will have to save Italy from bankrupcy,by printing billions of euro and buying the Italian government debt.I really doubt that this impact the bitcoin price,the italians just won't start buying bitcoins like crazy.The price of the euro will go down and most of the people will start buying gold,USD or real estate.

Yes I agree with you and that is why I think this trade union may create another great financial crisis in some years to come.  I don't think we would have no consequences from this and because bitcoin is becoming globalized there is no going to be any things that affect the global financial system that will not affect bitcoin .