Topic: The new economic crisis is the transition to crypto. (Read 533 times)
maybe it could also happen, but I personally crypto sector will not experience or be affected by the economic crisis because crypto has a different system from the world economy now
I think it's too early for us to talk about the global transition of the entire financial world to the crypto currency.
Still a lot of issues need to be solved with the security of the crypto currency so that the countries seriously think about using bitcoin.
Still a lot of issues need to be solved with the security of the crypto currency so that the countries seriously think about using bitcoin.
What exactly are you expecting switching cryptocurrencies will solve a economic crisis? From what I know a economic crisis or a global recession happens naturally and is like a reset for the market, nothing can solve it but it will fix on its own. We may see that several marjets are down due to people loquidating their assets in the need for money but the truth is switching ti cryptocurrencies now won't really change or do a positive thing for what is happening right now.
We know that economic crises happens from time to time but what people are predicting is that we are going to see a crisis that is going to be unlike any other, it is going to be a crisis that threatens all the system and if that indeed becomes true, then the next crisis is going to be big enough to threaten and even destroy the current economic system and if you think that is impossible the last time this happened was in the seventies so it was not that long ago. 
To date, the economic situation in many countries is in critical condition. Can the next financial and economic crisis be a transition to global use of crypto currency in international settlements?
I do want to agree with you in line with this that when the cryptocurrency market wakes up again not only to restoration but with a purpose of bringing in the adaption of the various altcoins; into their full purposes/functions.
What exactly are you expecting switching cryptocurrencies will solve a economic crisis? From what I know a economic crisis or a global recession happens naturally and is like a reset for the market, nothing can solve it but it will fix on its own. We may see that several marjets are down due to people loquidating their assets in the need for money but the truth is switching ti cryptocurrencies now won't really change or do a positive thing for what is happening right now.
You are right about investing in strong fiat currencies (USD, EUR, etc), but the government of a country that is close to default can impose severe restrictions for exchanging them with the local fiat currency and vice versa. Thus crypto currencies can have an opportunity to be an international reserve asset in the crisis times for ordinary individuals.
I guess that the probable world economical crisis can affect the crypto currency world, but it will be an alternative transactional payment system.
We know that big money uses the major fiat currencies as a way to protect themselves in times of uncertainty, however it is likely that the next crisis is going to involve precisely those fiat currencies, just look at the huge debt that the government of the United States has and that is going to be impossible to pay, at some point people will recognize that the US dollar simply should not buy as much stuff anymore and that is when an opportunity is going to appear for alternative currencies like precious metals and cryptocurrencies. I guess that the probable world economical crisis can affect the crypto currency world, but it will be an alternative transactional payment system.
To date, the economic situation in many countries is in critical condition. Can the next financial and economic crisis be a transition to global use of crypto currency in international settlements?
Looking at the example of a Venezuelan country experiencing hyperinflation, the best step that can be taken is not to depend on the economy of a country with one currency, because it can be fatal and very easily suppressed by one of the big countries, then one of the best choices by switching to crypto currency , which cannot be suppressed by any country, the greatest possibility in the future there will be a single currency in the world, and bitcoin has the potential to become that currency.
We imagine that the economic crisis might be a new road to crypto if it happens to the rupiah ... I don't think that happened.
perhaps with the high value of the dollar lately it has caused a global crisis but the impact on bitcoin I think will increase rapidly because some countries are no longer dependent on the USD.
then the option might be bitcoin is one of the best places to save money.
then the option might be bitcoin is one of the best places to save money.
No, you are wrong because there are no objective reasons for that. In fact there are several countries which are close to the default as far as I know it is Venezuela, India, Turkey, Pakistan as well as the current world financial situation may say "cry to us about the next financial crisis" but I cannot figure out why do you consider that crypto currencies will substitute national currencies? In my opinion I consider that in the period of the next crisis currencies of developing countries will be weak but the major currencies (like dollar, euro, yen and some other) will be quite strong because investors usually use them as a refuge. What about crypto currencies, their liquidity and capitalization is ridiculous small to use them as a refuge for a big capital. Crypto currencies will likely grow but they are not going to substitute any national currencies in the near future.
You are right about investing in strong fiat currencies (USD, EUR, etc), but the government of a country that is close to default can impose severe restrictions for exchanging them with the local fiat currency and vice versa. Thus crypto currencies can have an opportunity to be an international reserve asset in the crisis times for ordinary individuals.
I guess that the probable world economical crisis can affect the crypto currency world, but it will be an alternative transactional payment system.
To date, the economic situation in many countries is in critical condition. Can the next financial and economic crisis be a transition to global use of crypto currency in international settlements?
Well, it all depends on the country. If a country really does depend on the global trade then if you are among this people then you can just make crypto as the transition for you to transfer your savings into it.
To date, the economic situation in many countries is in critical condition. Can the next financial and economic crisis be a transition to global use of crypto currency in international settlements?
It's an interesting thought for sure.
I've personally always thought that some sort of global financial crisis could be helpful in terms of getting people to adopt bitcoin. Especially one that has inflationary consequences, with rapidly increasing prices and CPI overall.
For example, just look at individual cases like Venezuela and Turkey, where bitcoin is definitely helping individuals to store their wealth away from their fiat currency, and thus leading to more adopters. This could happen under a global scale as well. Whether or not this actually evolves into a global payment network is another, but increased adoption of bitcoin as a store of value internationally is definitely possible under these circumstances.
It is very likely that a financial crisis will have a strong impact on the adoption of crypto currencies and you can see this happening already with the countries you mentioned...in Turkey the decline of the lira has caused people fleeing onto different assets and crypto currency is one of areas that are spiking in volume. Have a look at the article below and you you get a taste for what is coming.
https://www.coindesk.com/turkey-crypto-exchanges-bitcoin-lira/
yes, that can be an alternative. for countries that are in crisis and their currencies are experiencing massive inflation, bitcoin is actually considered more stable.
To date, the economic situation in many countries is in critical condition. Can the next financial and economic crisis be a transition to global use of crypto currency in international settlements?
Well, it all depends on the country. If a country really does depend on the global trade then if you are among this people then you can just make crypto as the transition for you to transfer your savings into it.
Some people says it is possible, no one really knows what lies ahead. Economic inflation is here and there, there are many countries that are suffering and having a hard time to regain it's lost. IF ever it may happens, when government thinks that they should go with the flow. Making new currency that same as their fiat- crypto currency that is centralized, well it will lead to a hard blow to crypto currencies that is decentralized. Masses will choose the safer investments I guess.
I do not think so, this economic crisis suffer by several countries because of US President policy about commodity things. Be sides He increase the taxation of import commodity, US government also limits or bounder the number of imports. And this trade war has been happening for a long time. We know US Dollar is the strongest currency of course it has huge and big impact when this authority created and launched a policy.
However, it is an opportunity and challenge for Crypto to spread and explore the existence while this economic crisis happening. Crypto should prove that it can solve and utilize the world currency, hopefully become a good solution for this problem.
However, it is an opportunity and challenge for Crypto to spread and explore the existence while this economic crisis happening. Crypto should prove that it can solve and utilize the world currency, hopefully become a good solution for this problem.
The next crisis is sure to happen. I'm 100% positive that we'll face it in the next 20 years, although there can be other events that create similar turmoil and reset the economy. To name a few, a world war or a global cataclysm can play the role of substitutes. The previous economic collapse was saved by money printing and cheap credit aimed to make people feel more wealthy and push them to start their own companies and basically start living on credit. This resulted in huge debt that nobody can pay and put us on borrowed time. Will crypto rise from the ashes? Hard to say, but it will at least in the beginning be seen as a safe store of value. The problem is that during a crisis your gold bars under the bed won't mean much. They won't magically turn to food.
It could. We've seen previously in difficult financial times that people revert to storing their wealth in gold and silver.
With bitcoin somewhat mainstream now, or at least being known internationally to some degree, I think that it will take over a lot of the roles which precious metals used to play in terms of being a store of value within economic crises.
And when people have a dysfunctional fiat currency, they will obviously seek an alternative, which I think will force a lot of people into looking at bitcoin as a viable one. After the crisis though, it's debatable that they wall continue to use bitcoin, even though adoption technically has increased.
This is entirely true but I think it is going to happen in two phases, as first people are going to try to buy gold and silver to protect themselves since that is something that they have done for a long time, but then the governments are going to tax any profits that people get out of their investments in gold and silver and will even try to confiscate it, at that point people will realize that they need something that cannot be easily confiscated and tracked like gold and silver and that is when they will begin to adopt bitcoin.With bitcoin somewhat mainstream now, or at least being known internationally to some degree, I think that it will take over a lot of the roles which precious metals used to play in terms of being a store of value within economic crises.
And when people have a dysfunctional fiat currency, they will obviously seek an alternative, which I think will force a lot of people into looking at bitcoin as a viable one. After the crisis though, it's debatable that they wall continue to use bitcoin, even though adoption technically has increased.
That could be a possibility.
Gold and silver seems to be the accepted standard of storing value in the long term in many countries still, and it's logical to think that people will resort to silver and gold due to their cultural significance.
Confiscation could be a potential policy. However, I don't think that's the main reason why people would transition to using bitcoin and other decentralised cryptos in an economic crisis, from the traditional store of values and hedges against fiat in gold and silver.
The most important benefit that bitcoin has over gold and silver in the case of a hyperinflationary crisis is that it is divisible, it is convenient, which is unlike gold which can't be used as a currency conveniently in times like these due to its inconvenience to transact with. Bitcoin on the other hand, you don't have to worry about counterfeit bars, purity, or weight, which would be the last of your worries when it comes to a full on global financial crisis like you suggest.
It could. We've seen previously in difficult financial times that people revert to storing their wealth in gold and silver.
With bitcoin somewhat mainstream now, or at least being known internationally to some degree, I think that it will take over a lot of the roles which precious metals used to play in terms of being a store of value within economic crises.
And when people have a dysfunctional fiat currency, they will obviously seek an alternative, which I think will force a lot of people into looking at bitcoin as a viable one. After the crisis though, it's debatable that they wall continue to use bitcoin, even though adoption technically has increased.
This is entirely true but I think it is going to happen in two phases, at first people are going to try to buy gold and silver to protect themselves since that is something that they have done for a long time, but then the governments are going to tax any profits that people get out of their investments in gold and silver and will even try to confiscate it, at that point people will realize that they need something that cannot be easily confiscated and tracked like gold and silver and that is when they will begin to adopt bitcoin. With bitcoin somewhat mainstream now, or at least being known internationally to some degree, I think that it will take over a lot of the roles which precious metals used to play in terms of being a store of value within economic crises.
And when people have a dysfunctional fiat currency, they will obviously seek an alternative, which I think will force a lot of people into looking at bitcoin as a viable one. After the crisis though, it's debatable that they wall continue to use bitcoin, even though adoption technically has increased.
To date, the economic situation in many countries is in critical condition. Can the next financial and economic crisis be a transition to global use of crypto currency in international settlements?
Why not, crypto currencies may be able to withstand the upcoming crisis as long as government permits the use of it in such harsh conditions. For now we dont know whether this is possible or not because on the practical front crypto currencies are already banned in many countries and most of the countries are using it but they have not approved it as legal tender. Obviously if thats the case then there is no way that it will even help out the economic situation in proper ways. For it to accomodate those problems, it will need to be regulated first. And how will it help? Well it may just become the store value for it and thus unlike gold and silver may become point of storage for the valuable stuff.
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