Topic: The collapse of the system - page 2. (Read 302 times)

It depends in what you even mean by that. The system has ups and downs, but it never disappears. The bubbles are caused by the dominant school of economy based on debt rather than savings, inflation rather than deflation. And all bubbles pop. With a different type of economy, bubbles never form, and therefore never pop, things fluctuate as before, but in less magnitude. This is what Bitcoin will ultimately be, as a deflationary coin, and some smart people will find out the only school of economy that promotes the use of deflationary coins, which is the Austrian school. Then follow their ideas and then the world will enter a new stage.

You could say the Chicago school of economy will collapse, but not yet, it still has way to live. Bitcoin will live in parallel, unaffected by the stupid bubble/pop cycles. If people want to leave that dynamic, they might seek refuge in Bitcoin or more traditionally, the metals.

In a deflationary school, the banks are optional. And they cannot use your money without your permission, like they do in the current system. With deflation, fractional reserve banking no longer works, and only full reserve banking is adequate. Many people here don't know it, but that is precisely what online wallets and things like exchanges are, not because they want to, but because they have no choice. Lending your money has to be your choice, and if lent, it cannot be available until the term ends. And yes, if you want for third parties (banks) to keep your money, LOGICALLY you have to pay them fees, which is exactly what is occurring when you put money in/out of exchanges/online wallets etc. You are paying the bank to keep your money, if you ever used such service you have already done it.

If there is anything like financial crisis on fiat, I think the crypto ecosystem is already available to cushion whatever hardship that might come up. It won't be felt like in the past because monies are definitely going to be converted into fiat.

I think we can use the case of countries like Venezuela whose traditional financial system already collapsed. Cryptocurrencies like bitcoin, dash, and litecoin have been the go-to currency of Venezuelans. If this collapse happens to more countries, citizens will likely follow what the Venezuelans are doing. Crypto market is going to explode if that collapse happens.

We have seen an influx of investments into Crypto currencies when the traditional financial markets are struggling. I want to predict a massive shift into possible safe havens like Bitcoin, when there will be a next financial crisis ...and believe me, it is coming. The signs are there that the Stock markets is over valued and that the political scene between super powers are being balanced on a knives edge. 

The Banks and other financial giants did not learn any lessons from the previous crisis and the debt is still spiraling out of control. Expect traders to look for something with a store of value, like we have in Bitcoin. 

Cryptocurrency has been a way to avoid the flaws of traditional financial system for quite a time. Financially excluded country have taken benefits and really did flourished their economy with the use of crypto in the last decade. Russian and Iran being two of the successful examples.
The traditional financial system is highly regulated and is in a close control of limited number of elites. The capital market has huge flaws as they don't balance themselves or are hugely influenced by external factors creating periodic depressions. This time people have crypto as a rescue boat.

Good afternoon,

I would like to gather your opinions on the reaction of the cryptocurrency market in the face of a fall of the traditional financial system.

There are many signs showing that a new crisis is coming, it will be much more powerful than in 2008 and have a bigger impact.

How do you think the cryptocurrency market will react when the system collapses?

Thanks for sharing