US Debt Default: Good or bad for crypto? - page 2.

redwine49

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Quote from: Uruhara on June 08, 2023, 07:14:41 PM

Quote from: Andrija Branislav on June 07, 2023, 12:52:17 AM

If we look at the Prospect of a US debt default it has the potential to trigger a major shift in investor sentiment which will trigger a widespread loss of confidence among investors leading to an increase in risk aversion including cryptocurrencies where the Crypto Market also has a Dependence on the Traditional Financial System.

Everyone knows that the USD plays an important role in global trade and financial transactions although at the moment some investors may consider it. cryptocurrencies as a potential haven, thus potentially increasing the demand for digital assets. US Debt Default will be a systemic shock that could reverberate across crypto markets because of the USD, as the world's reserve currency as it is known.

Well it seems that what you say I can understand. and I agree that the dollar, which is also the global reserve currency and is also the money that is used more in global transactions, will definitely also affect the global economy if the dollar currency declines as a result of America failing to pay its debts. But in the end America can now avoid defaulting on debt. and the dollar had experienced a rise back in the market.

for now yes, but this resulted in high inflation in the US dollar which has been exacerbated by the presence of covid in recent years many businesses have failed to pay off debts which ended in bankruptcy

Quote from: BitcoinTurk on June 09, 2023, 08:24:17 AM

Quote

What do you think? Is a US default good or bad for crypto in the short term? Your input will be greatly appreciated. Thank you.

In the short term it seems highly likely that this situation will have a positive effect on the cryptocurrency markets. The reason for this was that although decentralized structures may actually seem reliable they can fail in some difficult conditions in this way. In addition, although the inability of a state with a reserve currency to pay this debt will predominantly undermine the confidence in the country's economy it will certainly have an impact on fiat currencies. Still I don't think cryptocurrencies will appreciate too much or quickly gain a stronger place in the market in such a case. Even though I haven't been following the news very closely for the last few days, I saw that this situation didn't have much of an impact on the markets.

I think it's the other way around, why?
we also need a stablecoin (USDT) which they promise 1 USD should equal 1 USDT.
take a look at coinmarketcap. USD tether which is currently the anchor between fiat and stablecoins. USDT stablecoin has 83M $ marketcap and keep going up

BitcoinTurk

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Quote

What do you think? Is a US default good or bad for crypto in the short term? Your input will be greatly appreciated. Thank you.

In the short term it seems highly likely that this situation will have a positive effect on the cryptocurrency markets. The reason for this was that although decentralized structures may actually seem reliable they can fail in some difficult conditions in this way. In addition, although the inability of a state with a reserve currency to pay this debt will predominantly undermine the confidence in the country's economy it will certainly have an impact on fiat currencies. Still I don't think cryptocurrencies will appreciate too much or quickly gain a stronger place in the market in such a case. Even though I haven't been following the news very closely for the last few days, I saw that this situation didn't have much of an impact on the markets.

Uruhara

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Quote from: Andrija Branislav on June 07, 2023, 12:52:17 AM

If we look at the Prospect of a US debt default it has the potential to trigger a major shift in investor sentiment which will trigger a widespread loss of confidence among investors leading to an increase in risk aversion including cryptocurrencies where the Crypto Market also has a Dependence on the Traditional Financial System.

Everyone knows that the USD plays an important role in global trade and financial transactions although at the moment some investors may consider it. cryptocurrencies as a potential haven, thus potentially increasing the demand for digital assets. US Debt Default will be a systemic shock that could reverberate across crypto markets because of the USD, as the world's reserve currency as it is known.

Well it seems that what you say I can understand. and I agree that the dollar, which is also the global reserve currency and is also the money that is used more in global transactions, will definitely also affect the global economy if the dollar currency declines as a result of America failing to pay its debts. But in the end America can now avoid defaulting on debt. and the dollar had experienced a rise back in the market.

STT

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Debt default is bad for everyone, a bad event happening to a neighbour is still a bad thing overall for everyone in that neighbourhood. There isnt too many circumstances that people can suffer to that extent that somehow leaves your outlook sunny and better off, it will effect everyone. Thats how I view an economy, a reflection of society not separate or isolated. The main thing to note is the ongoing debt situation is already a negative, its already distorting free markets with this overshadowing effect from central government and endless new money printing to serve that debt above all others.
Crypto is really in that comparison about mitigating a negative, clawing back the losses from the abyss by avoiding leaning on something you know is rotten and soft ready to fall over. Who wants to put all their weight onto something already known as a negative, people naturally want to distance themselves from that potential loss and the already ongoing loss hence crypto has its uses in many ways but I dont think it can possibly perfectly counter act and save the day largely because many arent involved.

BitcoinBabbler

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We are based see on American signs and also This is a slow and steady process that will take years probably decades to accomplish. A fall in the USD's status as the reserve currency may shook crypto markets for a short period of time.market prices should go all the way to the moon. That's because the USD will become less-valuable over time and specifically the tech stocks, so a fall of the market would translate in a fall of the value of Bitcoin and then a steady recovery through the time in my opinion.

greek_hephaestus

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Quote from: redwine49 on June 07, 2023, 01:04:08 PM

Quote from: Abiky on May 23, 2023, 10:15:47 AM

There are talks among US politicians and economists about the country defaulting on its national debt. Congress usually approves raising the debt ceiling, so I don't see what's the issue here. But if somehow the US defaults, how would the crypto market react? Positively or negatively? The USD is the reserve currency of the world, so it's likely everything (stocks, crypto, etc) will crash alongside it.

I agree on your thoughts on Cryptocurrency, however it has been noticed before that Bitcoin shows some correlation with Wallstreet, specifically the tech stocks, so a fall of the market would translate in a fall of the value of Bitcoin and then a steady recovery through time, in my opinion.

Also, even if the USA lost some relevance in their battle against China, there would be still countries which would not dare to ditch the USD, for simple diplomacy and inertia. All the commonwealth, Japan, Canada, Central Europe... Granted, we thought the same about Saudi Arabia, but it is harder to happen in my eyes, seeing those countries changing their views and their status quo on the reserve currency.
Re

What do you think? Is a US default good or bad for crypto in the short term? Your input will be greatly appreciated. Thank you.

shorterm i think this is not good for crypto market. agree, if the US defaults i think bitcoin and altcoin price will fall deeply. But i don't know how about the currency itself.
are we going to the stone age? trading some gold and oil

Quote from: Smartprofit on May 23, 2023, 04:39:02 PM

Gold and Bitcoin will rise in price very strongly.

i hope so, but i don't believe it will come true

i will accept the thought in crypto, however it has been noticed before that Bitcoin shows some correlation with Wall street, specifically the tech stocks, so a fall of the market would translate in a fall of the value of Bitcoin and then a steady recovery through time, in my opinion. Also, even if the USA lost some relevance in their battle against China, there would be still countries which would not dare to ditch the USD, for simple diplomacy and inertia.

redwine49

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Quote from: Abiky on May 23, 2023, 10:15:47 AM

There are talks among US politicians and economists about the country defaulting on its national debt. Congress usually approves raising the debt ceiling, so I don't see what's the issue here. But if somehow the US defaults, how would the crypto market react? Positively or negatively? The USD is the reserve currency of the world, so it's likely everything (stocks, crypto, etc) will crash alongside it.

What do you think? Is a US default good or bad for crypto in the short term? Your input will be greatly appreciated. Thank you.

shorterm i think this is not good for crypto market. agree, if the US defaults i think bitcoin and altcoin price will fall deeply. But i don't know how about the currency itself.
are we going to the stone age? trading some gold and oil

Quote from: Smartprofit on May 23, 2023, 04:39:02 PM

Gold and Bitcoin will rise in price very strongly.

i hope so, but i don't believe it will come true

Abiky

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Quote from: slapper on June 06, 2023, 11:59:18 PM

This discussion presents an interesting contrast between traditional fiat currencies and the emerging world of cryptocurrencies. Undeniably, USD's dominance is reflective of the USA's economic power. As @hispo illustrated, despite political tensions, USD remains a key player in global transactions. It has this aura of stability that other currencies often lack.

However, here's where my skepticism creeps in. Saying that a downfall of the US would boost crypto markets to the moon seems oversimplified. While it's true that instability often leads to increased investment in alternative assets, the transition from fiat to crypto won't be a walk in the park. Moreover, a global economic shift as big as the US losing its leading position would cause ripples across all financial markets, not just cryptocurrencies.

As for Bitcoin or any other crypto becoming the world's reserve currency, I concur with your reservations. The decentralized nature of cryptocurrencies, while attractive to some, is a hurdle too high for governments worldwide to jump over - at least in the foreseeable future. It's a wild west out there in crypto land, and I don't see governments handing over the reins anytime soon.

We may be seeing signs of American decline, but it's not over yet. This is a slow and steady process that will take years (probably decades) to accomplish. A fall in the USD's status as the reserve currency may shook crypto markets for a short period of time. But long-term speaking, market prices should go all the way to the moon. That's because the USD will become less-valuable over time. Since crypto (especially Bitcoin) is deflationary, anything affecting the USD's value (mainly inflation) would benefit market prices as a whole.

Maybe this will force countries to add crypto into their porfolios as a sort of hedge against inflation? It would make crypto (especially Bitcoin) an ideal store of value just like Gold. The US debt limit was just suspended until 2025, so time will tell us what will happen with the mainsteam economy after then. I have a feeling crypto will prevail, as Fiat currencies see their demise in the long run. Just my opinion

Andrija Branislav

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If we look at the Prospect of a US debt default it has the potential to trigger a major shift in investor sentiment which will trigger a widespread loss of confidence among investors leading to an increase in risk aversion including cryptocurrencies where the Crypto Market also has a Dependence on the Traditional Financial System.

Everyone knows that the USD plays an important role in global trade and financial transactions although at the moment some investors may consider it. cryptocurrencies as a potential haven, thus potentially increasing the demand for digital assets. US Debt Default will be a systemic shock that could reverberate across crypto markets because of the USD, as the world's reserve currency as it is known.

slapper

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Quote from: Abiky on June 06, 2023, 11:45:50 AM

Quote from: Hispo on June 05, 2023, 06:45:39 PM

I am from Venezuela and I can assure you that the USD here is more recognized and stronger than ever... It has reached to a point where it has been replacing our local currencies these lastest years. Nowadays it is common for people to handle USD in cash and there have been banks which offer accounts in that currency. People have turned to Bitcoin, but mostly also stable coins pegged to the dollar.

I have not seen a single Yuan bill being used in a transaction in my life, and yet even though the USA is mostly hostile to us, we have embraced their money, so you can rule out Venezuela for now (and in the mid term) when talking about de-dollarization.

It's difficult to move away from the USD. The currency is still a "force to reckon with". Even though some countries expressed their intentions to move away from the USD, they haven't been able to achieve it yet. It's likely the USD will stay with us for a few decades from now. Nothing lasts forever, so we should expect another currency to replace the USD in the future. Once the US is no longer the leading force of the global economy, it'll be game over for good. I think that would mark the end of the US as a superpower.

As far as crypto is concerned, I think it will continue to increase in price for years on end. A US downfall would certainly boost crypto markets all the way to the moon. But I doubt BTC or any other crypto will become the world's reserve currency because of their decentralized nature. Governments simply won't allow this to happen. Who knows what the future holds for our society? Just my thoughts Grin

This discussion presents an interesting contrast between traditional fiat currencies and the emerging world of cryptocurrencies. Undeniably, USD's dominance is reflective of the USA's economic power. As @hispo illustrated, despite political tensions, USD remains a key player in global transactions. It has this aura of stability that other currencies often lack.

However, here's where my skepticism creeps in. Saying that a downfall of the US would boost crypto markets to the moon seems oversimplified. While it's true that instability often leads to increased investment in alternative assets, the transition from fiat to crypto won't be a walk in the park. Moreover, a global economic shift as big as the US losing its leading position would cause ripples across all financial markets, not just cryptocurrencies.

As for Bitcoin or any other crypto becoming the world's reserve currency, I concur with your reservations. The decentralized nature of cryptocurrencies, while attractive to some, is a hurdle too high for governments worldwide to jump over - at least in the foreseeable future. It's a wild west out there in crypto land, and I don't see governments handing over the reins anytime soon.

kojektea

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if the US itself has banned crypto, the growth of crypto should be even better when there are problems about the economy in that country, because the US could just embrace crypto again to save their country's economy. what they will affect is fiat and stocks in my opinion, it will not be related to crypto unless you have a business here from the start, unfortunately the US actually prohibits it.

terencio

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A US debt default would have huge implications for the global economy and financial markets, including the crypto market. According to some analysts1, a US debt default could make Bitcoin soar by 70% as it becomes a safe-haven asset. However, others argue that a US debt default could also trigger a sell-off of risky assets, including cryptocurrencies.

Hispo

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Quote from: Abiky on June 06, 2023, 11:45:50 AM

Quote from: Hispo on June 05, 2023, 06:45:39 PM

I am from Venezuela and I can assure you that the USD here is more recognized and stronger than ever... It has reached to a point where it has been replacing our local currencies these lastest years. Nowadays it is common for people to handle USD in cash and there have been banks which offer accounts in that currency. People have turned to Bitcoin, but mostly also stable coins pegged to the dollar.

I have not seen a single Yuan bill being used in a transaction in my life, and yet even though the USA is mostly hostile to us, we have embraced their money, so you can rule out Venezuela for now (and in the mid term) when talking about de-dollarization.

It's difficult to move away from the USD. The currency is still a "force to reckon with". Even though some countries expressed their intentions to move away from the USD, they haven't been able to achieve it yet. It's likely the USD will stay with us for a few decades from now. Nothing lasts forever, so we should expect another currency to replace the USD in the future. Once the US is no longer the leading force of the global economy, it'll be game over for good. I think that would mark the end of the US as a superpower.

As far as crypto is concerned, I think it will continue to increase in price for years on end. A US downfall would certainly boost crypto markets all the way to the moon. But I doubt BTC or any other crypto will become the world's reserve currency because of their decentralized nature. Governments simply won't allow this to happen. Who knows what the future holds for our society? Just my thoughts Grin

I agree on your thoughts on Cryptocurrency, however it has been noticed before that Bitcoin shows some correlation with Wallstreet, specifically the tech stocks, so a fall of the market would translate in a fall of the value of Bitcoin and then a steady recovery through time, in my opinion.

Also, even if the USA lost some relevance in their battle against China, there would be still countries which would not dare to ditch the USD, for simple diplomacy and inertia. All the commonwealth, Japan, Canada, Central Europe... Granted, we thought the same about Saudi Arabia, but it is harder to happen in my eyes, seeing those countries changing their views and their status quo on the reserve currency.

Abiky

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Quote from: Hispo on June 05, 2023, 06:45:39 PM

I am from Venezuela and I can assure you that the USD here is more recognized and stronger than ever... It has reached to a point where it has been replacing our local currencies these lastest years. Nowadays it is common for people to handle USD in cash and there have been banks which offer accounts in that currency. People have turned to Bitcoin, but mostly also stable coins pegged to the dollar.

I have not seen a single Yuan bill being used in a transaction in my life, and yet even though the USA is mostly hostile to us, we have embraced their money, so you can rule out Venezuela for now (and in the mid term) when talking about de-dollarization.

It's difficult to move away from the USD. The currency is still a "force to reckon with". Even though some countries expressed their intentions to move away from the USD, they haven't been able to achieve it yet. It's likely the USD will stay with us for a few decades from now. Nothing lasts forever, so we should expect another currency to replace the USD in the future. Once the US is no longer the leading force of the global economy, it'll be game over for good. I think that would mark the end of the US as a superpower.

As far as crypto is concerned, I think it will continue to increase in price for years on end. A US downfall would certainly boost crypto markets all the way to the moon. But I doubt BTC or any other crypto will become the world's reserve currency because of their decentralized nature. Governments simply won't allow this to happen. Who knows what the future holds for our society? Just my thoughts Grin

woez

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I guess Just as Bitcoin can gain in value at any given time, it can also fluctuate or decline. The current sell-off of Bitcoin amid the threat of a US default serves as a reminder that both Bitcoin and the USD can have their gains or losses and it is true that there is a dynamic between the two that will fluctuate over time, and the interaction is not always one-sided.

slapper

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Quote from: Abiky on May 28, 2023, 12:35:28 PM

Quote from: cabron on May 25, 2023, 08:39:45 PM

Debt default is drawing closer and if there is no raising of debt ceiling yet from both parties, then both have two different decisions. A chaotic market ahead.

Bitcoin is now political. News flows by where DeSantis and RFK is into Bitcoin and have BTC to be their tool to in election. BTC is linked to popularity already and a presidential candidate who protcts BTC might win the BItcoiners.

It seems the US will be raising the debt limit again. But they can't keep doing this forever. At some point, the US will default and chaos will spread all around the world. Bitcoin will ultimately prevail because of its deflationary and decentralized nature. Some US politicians have recognized BTC's potential to change our world for the better. The cryptocurrency's popularity is too hard to ignore these days. We could say politicians that are against BTC will see their demise after Election Day. Only time will tell us whenever the US will fully embrace the revolution or be left behind in the dust.

I'd be surprised if the country backs its currency (USD) with BTC sometime in the future. It would solve many problems in the long run. Either way, I'm certain a US default would have a positive effect over crypto market prices in the future. Short-term speaking, prices will decline because markets are tied to the USD. We should take the opportunity to grab as much coins as we can at a discount. Who knows if people will end up ditching Fiat currencies for good? Just my opinion

Now that you've got some spice in your thoughts, let's take a break. If the United States were to stop paying its debts, however, the repercussions would be felt around the world like an earthquake. Would Bitcoin, however, emerge from the ashes like the mythical bird? Any guesses are welcome.

Bitcoin, in its decentralised and deflationary form, is a bit of a wild stallion: untamed, unpredictable, and lacking in any real support of a tangible object. It may not be the safe haven that people expect it to be in the event of a financial crisis. Though some political insiders have begun to warm up to the 'Bit,' this term is far from being a conversation starter with the electorate as a whole. Promoting a Bitcoin-based election approach could be like selling a sci-fi film to a romance audience.

As for ditching the greenback in favour of Bitcoin, what are your thoughts now? It's an idea, but it's like attempting to unravel a Gordian knot. Connecting the dollar to the BTC might be like tethering the economy to a bungee cord, resulting in wild swings and a healthy dose of adrenaline. And don't forget, there are still some kinks to work out in the crypto sector, as it's very new.

Call_Me_Guru

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The US debt ceiling can not be good or bad for crypto, things will be the way they have been when times are there when bitcoin will get favoured and times will be there when it will lose value due to some adjustment in the USD value. The US money is not the only currency and asset that bitcoin is countering and this is what I know for many other valuable materials, they will get to have their time and the time they will be falling. The selling of bitcoin as of today when the US is facing the default threat can should affirm to you that the bitcoin can not always have the advantage and the USD can not always have the advantage, the two will have their time, good or bad.

Hispo

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Quote from: Abiky on June 05, 2023, 04:38:15 PM

Quote from: Argoo on June 03, 2023, 12:09:51 PM

The United States is quite wise to print extra cash so that it has little effect on increasing the rate of inflation in their country. They exchange the printed money supply for necessary goods in other countries and make sure that in the future large consignments of cash do not return back to their country. As long as the dollar is the universally recognized reserve currency of the world, it will not be afraid of default.

That is true. But many countries are beginning to move away from the USD. Venezuela, China, Russia, Iran, and many others already began the de-dollarization process. If the list of countries abandoning the USD keeps growing, then it will be game over for the US for good. I fail to see how the country will be able to survive after this happens.

If the FED keeps printing money, inflation will rise and crypto (especially BTC) will go all the way to the moon. This is inevitable, especially when the US finds itself unable to pay its debt. They can raise the ceiling all they want, but that doesn't mean the debt will vanish for good. Who knows if we're close to seeing crypto replace Fiat currencies as the standard unit of account? Just my opinion

I am from Venezuela and I can assure you that the USD here is more recognized and stronger than ever... It has reached to a point where it has been replacing our local currencies these lastest years. Nowadays it is common for people to handle USD in cash and there have been banks which offer accounts in that currency. People have turned to Bitcoin, but mostly also stable coins pegged to the dollar.

I have not seen a single Yuan bill being used in a transaction in my life, and yet even though the USA is mostly hostile to us, we have embraced their money, so you can rule out Venezuela for now (and in the mid term) when talking about de-dollarization.

Abiky

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Quote from: Argoo on June 03, 2023, 12:09:51 PM

The United States is quite wise to print extra cash so that it has little effect on increasing the rate of inflation in their country. They exchange the printed money supply for necessary goods in other countries and make sure that in the future large consignments of cash do not return back to their country. As long as the dollar is the universally recognized reserve currency of the world, it will not be afraid of default.

That is true. But many countries are beginning to move away from the USD. Venezuela, China, Russia, Iran, and many others already began the de-dollarization process. If the list of countries abandoning the USD keeps growing, then it will be game over for the US for good. I fail to see how the country will be able to survive after this happens.

If the FED keeps printing money, inflation will rise and crypto (especially BTC) will go all the way to the moon. This is inevitable, especially when the US finds itself unable to pay its debt. They can raise the ceiling all they want, but that doesn't mean the debt will vanish for good. Who knows if we're close to seeing crypto replace Fiat currencies as the standard unit of account? Just my opinion

Unbunplease

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Quote from: Argoo on June 03, 2023, 12:09:51 PM

The United States is quite wise to print extra cash so that it has little effect on increasing the rate of inflation in their country. They exchange the printed money supply for necessary goods in other countries and make sure that in the future large consignments of cash do not return back to their country. As long as the dollar is the universally recognized reserve currency of the world, it will not be afraid of default.

I think it is very difficult to keep track of the excess money supply so that it does not flow back into the country. In order to do that, everyone has to become pathologically honest, which in the current reality is almost impossible. And for cryptocurrency, printing more money is a good thing. For where else to invest the excess money supply?

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