Congress already made a deal to raise the debt ceiling, so we should have nothing to worry about (for now). One way or another, the US will be unable to pay its obligations due to the ever-increasing national debt. I'm pretty sure the FED will print more money (inflation) to "magically" sustain the American economy. People are beginning to lose faith in the corrupt banking system, so it should only be a matter of time before Bitcoin and other cryptocurrencies rise all the way to Mars.
Topic: US Debt Default: Good or bad for crypto? - page 3. (Read 769 times)
Congress already made a deal to raise the debt ceiling, so we should have nothing to worry about (for now). One way or another, the US will be unable to pay its obligations due to the ever-increasing national debt. I'm pretty sure the FED will print more money (inflation) to "magically" sustain the American economy. People are beginning to lose faith in the corrupt banking system, so it should only be a matter of time before Bitcoin and other cryptocurrencies rise all the way to Mars.
Well, first thing first, i do not see any default coming to the US because they have a hell lot of money and assets and also Wealthy Patriots who can single-handedly deal with the debt problem currently the USA is facing. Now secondly, if we assume that those patriots are also out of money and US political leaders have no backup plan to deal with this situation which in reality they must have. There will be bad consequences for BTC and for the whole stock market too. Because the US is the main currency for all of the stablecoins and we have seen it recently what effect does their downtrend make on BTC? When the Silicon Valley Bank was bankrupted the value of Stable Coin USDC become more volatile which highly affected the market.
Secondly, the good side of it was, the dominance of BTC was increasing because people need some place to hold their money where it can not lose its value. So, BTC is that place. It also was the main reason for the origin of BTC so that in the next banking crisis (financial Crisis) people have at least something to store their money to keep its value safe. And BTC will be used as one.
Secondly, the good side of it was, the dominance of BTC was increasing because people need some place to hold their money where it can not lose its value. So, BTC is that place. It also was the main reason for the origin of BTC so that in the next banking crisis (financial Crisis) people have at least something to store their money to keep its value safe. And BTC will be used as one.
Congress already made a deal to raise the debt ceiling, so we should have nothing to worry about (for now). One way or another, the US will be unable to pay its obligations due to the ever-increasing national debt. I'm pretty sure the FED will print more money (inflation) to "magically" sustain the American economy. People are beginning to lose faith in the corrupt banking system, so it should only be a matter of time before Bitcoin and other cryptocurrencies rise all the way to Mars.
Of course, a debt default will crash crypto market prices all the way down to "rock bottom". But the effects will be temporary due to the declining value of the USD. BTC was made to battle inflation, so I'd suggest you keep on "hodling" no matter what. Who knows if you'll strike it rich someday? Just my thoughts
This is one of the worst aspects of the matter, the correlation of the global economy, stocks, banks and even cryptocurrencies with the dollar is the worst of the matter, the collapse of the dollar will lead to the collapse of all of these. This is the main reason why Satoshi strived to invent Bitcoin to decouple the global economy from the dollar.
Defaulting on debt will certainly have a negative impact on cryptocurrencies in the short term, but in the long term I expect its impact to be positive because everyone will seek to convert their savings into bitcoins before their value collapses permanently, and this will push the price of bitcoin up.
Satoshi invent Bitcoin for the people to have a decentralized currency and not necessarily for the dollar so even if the dollar falls, Bitcoin will still be there and it will be a good thing for it in fact. The more the wish of the people to become Bitcoin to be a global currency will come true.Defaulting on debt will certainly have a negative impact on cryptocurrencies in the short term, but in the long term I expect its impact to be positive because everyone will seek to convert their savings into bitcoins before their value collapses permanently, and this will push the price of bitcoin up.
If there are the ones that will badly suffer, that would be the banks and others that you mentioned but there are still other currency left out there. They can still move on this and sooner or later they will soon recover. Defaulting a loan is going to be a bad thing for the US dollar itself and this can be the reason for its collapse but I don't think the US banks will let it happen. They will surely find a way to pay those debts.
Bitcoin spiked on the news which is odd since we expected the opposite to happen. US would default and everybody would flock to Bitcoin as a hedge. But instead it rallied when the debt limit was raised.
It's not odd, in the last few years there has been a lot of correlation with the US economy and stock market. Bitcoin is now a mainstream high risk investment, it's not a hedge, it's a way to make quick profit when the economy is doing well. And when it's not well, investors dump Bitcoin for cash or gold.
I think this "odd" price action demonstrates that the market is dominated by traders rather than Bitcoin maximalists who believe in it being digital gold.
Looks like they reached an agreement. They are extending the limit for another 2 years and some budget caps for 2 years. They also saved $50B somehow which is a joke since they are trillions in debt. This is proof that this debt will one day spiral out of control.
Bitcoin spiked on the news which is odd since we expected the opposite to happen. US would default and everybody would flock to Bitcoin as a hedge. But instead it rallied when the debt limit was raised.
Awesome news. Still, this is merely putting a band-aid resolution over a problem that is already decades due. If the US doesn't do something smart in that 2 year-span things will definitely spiral out of control as you said and well, once the dam is broken a cascade of problems, courtesy of the recession will definitely come forth. In any case, I guess it's just enough to celebrate lmao. We're not out of the clear yet but at least we're not due for suffering. Bitcoin spiked on the news which is odd since we expected the opposite to happen. US would default and everybody would flock to Bitcoin as a hedge. But instead it rallied when the debt limit was raised.
As for bitcoin, it's really hard to pinpoint what's up with it, it came to a point where I stopped correlating current events and news with the price of bitcoin cause for me, it's gonna rise if it wants to rise and it will fall if it wants to dump in value.
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.
Well, first thing first, i do not see any default coming to the US because they have a hell lot of money and assets and also Wealthy Patriots who can single-handedly deal with the debt problem currently the USA is facing. Now secondly, if we assume that those patriots are also out of money and US political leaders have no backup plan to deal with this situation which in reality they must have. There will be bad consequences for BTC and for the whole stock market too. Because the US is the main currency for all of the stablecoins and we have seen it recently what effect does their downtrend make on BTC? When the Silicon Valley Bank was bankrupted the value of Stable Coin USDC become more volatile which highly affected the market.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.
Secondly, the good side of it was, the dominance of BTC was increasing because people need some place to hold their money where it can not lose its value. So, BTC is that place. It also was the main reason for the origin of BTC so that in the next banking crisis (financial Crisis) people have at least something to store their money to keep its value safe. And BTC will be used as one.
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.
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
But for discussion if I consider that will default on their debt, it will be an excellent thing for crypto market. Billions of dollars will be infused into the crypto market from various institutional investors to park their additional funds. Similarly Gold and other precious metals will also see a huge demand.
Oh yeah, just how
- war will be good for Bitcoin thousands will try to hide their wealth in Bitcoin
- inflation will be good for bitcoin, billions will try to protect their wealth with Bitcoin
That worked out perfectly, let's continue:
- unemployment will be great for Bitcoin, unemployed people will put their empty wallets in Bitcoin
- bankrupcies will be good for BTC, companies that don't produce a thing will put their income in BTCBTC
- Ebola will be great for Bitcoin, everyone that is not dead will put his money into Bitcoin
This reminds me of the stories about Cyprus, the banks closed and everyone was cheering how people were buying coins, must have been a miracle to have your funds locked in a bank but use them to buy BTC. If the US would somehow default for 99% of this planet BTC will be the last thing to think about.
The whole world economy depends on US dollar and on fiat, overall. If the US defaults, the whole world will be in chaos because the world will have to function without a currency for a while, people who hold USD in their pocket, will discover that they have only papers. That will be a terrible experience, it will be a terrible global experience.
I can't imagine how people think that bitcoin will save them in those hard times, will they be able to buy things in shop? Will they be able to make trades between countries via it? The vast majority doesn't know a thing about bitcoin and even more doesn't know how to properly store it.
I am not sure that any problems with the US domestic debt (under any scenario) will positively affect bitcoin. The problem is that cryptocurrencies have recently lost their mega investment attractiveness for the masses, plus, it turned out that the crypt is not a "safe haven" where you can survive the "financial storm" and not lose your savings.
What is highly likely to rise in price is gold.
If you believe in bitcoin's deflationary nature, then a US government default will have a positive impact on bitcoin. Because people will quickly look to other safe havens like metals and deflationary assets, and bitcoin will likely be of interest as well. What is highly likely to rise in price is gold.
I don't see any news or evidence that crypto is losing traction, it's still getting a lot of attention from the community, it's just that during the bear season, you won't see much positive news.
Given bitcoin's volatility, it's more suited to be a speculative asset than a purely safe haven, but if the US government defaults and the world economy falls into chaos, then it will become a safe haven.
Everything is fine in your idea, except for the incorrect assumption about the "stability of bitcoin", and the use of its safe "haven" in order to ride out the storm of the global economy.
Gold in such a situation is indeed an option, it is absolutely liquid. But the crypt, given its zero real value (absolutely speculative asset), its volatility that can kill your money faster than inflation, and the lack of normal legislative regulation - these are all problems that do not make the crypt a "safe haven".
But even within the framework of the topic - I honestly do not remember any very noticeable movements in the financial market, with the previous problems of the United States with its debt.
Moreover, I am absolutely sure that this is not a problem for the USA, and it will be solved, as always, because there is no problem as such
Looks like they reached an agreement. They are extending the limit for another 2 years and some budget caps for 2 years. They also saved $50B somehow which is a joke since they are trillions in debt. This is proof that this debt will one day spiral out of control.
Bitcoin spiked on the news which is odd since we expected the opposite to happen. US would default and everybody would flock to Bitcoin as a hedge. But instead it rallied when the debt limit was raised.
Bitcoin spiked on the news which is odd since we expected the opposite to happen. US would default and everybody would flock to Bitcoin as a hedge. But instead it rallied when the debt limit was raised.
Pleased to hear it. Yes maybe this incident will open everyone's eyes that the technology adopted by BTC will also be useful in terms of mitigating this US Debt Default. if you look at it, it's complicated to win and it will have a huge impact if you take the wrong decision, because a lot of people's fate is at stake and other related elements.
It's no fun when we all know the outcome from the moment we discuss this issue. The US government will never let that happen, what many people fear is just an unfounded fear in their minds. If people take the time to review history, this play was performed by the US government many years ago, and the outcome of that play has never changed.
Looks like they reached an agreement. They are extending the limit for another 2 years and some budget caps for 2 years. They also saved $50B somehow which is a joke since they are trillions in debt. This is proof that this debt will one day spiral out of control.
Bitcoin spiked on the news which is odd since we expected the opposite to happen. US would default and everybody would flock to Bitcoin as a hedge. But instead it rallied when the debt limit was raised.
Bitcoin spiked on the news which is odd since we expected the opposite to happen. US would default and everybody would flock to Bitcoin as a hedge. But instead it rallied when the debt limit was raised.
Pleased to hear it. Yes maybe this incident will open everyone's eyes that the technology adopted by BTC will also be useful in terms of mitigating this US Debt Default. if you look at it, it's complicated to win and it will have a huge impact if you take the wrong decision, because a lot of people's fate is at stake and other related elements.
Looks like they reached an agreement. They are extending the limit for another 2 years and some budget caps for 2 years. They also saved $50B somehow which is a joke since they are trillions in debt. This is proof that this debt will one day spiral out of control.
Bitcoin spiked on the news which is odd since we expected the opposite to happen. US would default and everybody would flock to Bitcoin as a hedge. But instead it rallied when the debt limit was raised.
Bitcoin spiked on the news which is odd since we expected the opposite to happen. US would default and everybody would flock to Bitcoin as a hedge. But instead it rallied when the debt limit was raised.
First of all, there won't be any US Debt Default, what we are seen is lobby power at play, the republicans know this, if the US defaults on its debt, Biden will push it as their fault and since they want to win the Whitehouse back they won't let this happens. However if this happens it would be bad for Crypto, US Dollar plays a major role in this space and there would be panic all over the world and Crypto assets won't be spared, I believe it would be one of the best days to buy Crypto in the history because the volatility would be huge, remember the Covid 19 panic. Just look at countries of the world that have defaulted on their Debt and how their economy have suffered after.
Based on the latest news it looks like America will avoid defaulting on debt. Because from the news I've read, the President (Biden) has met with the chairman of the House of Representatives, Kevin McCarthy, and has made an agreement or reached an agreement to raise the Federal government's debt limit, which is up to $ 31.4 trillion dollars.
And with this agreement formed, America will be prevented from failing to pay its debts.
------------
Sourch/Reference : https://www.livemint.com/news/world/biden-and-mccarthy-reach-bipartisan-agreement-on-debt-ceiling-report/amp-11685233998757.html
And with this agreement formed, America will be prevented from failing to pay its debts.
------------
Sourch/Reference : https://www.livemint.com/news/world/biden-and-mccarthy-reach-bipartisan-agreement-on-debt-ceiling-report/amp-11685233998757.html
As always, what we are discussing and fearing is just a play by them or the media that has manipulated us all. This is not the first time they have reached an agreement to help the government avoid default. I don't know if the information I know is accurate, but someone told me that news of the US government's default has been repeated almost 80 times over the past century. I'm not sure about the number 80, but news of the US government default has spread steadily in recent years and has become all too familiar to all of us
.
it seems we really have to familiarize ourselves with this.
Exactly what I also thought about this. Although I do not know what interest in it. but this is clearly quite influential on the outlook of the world economy. even the stock market and crypto are affected by news like this. but whatever it is I just hope the world economy gets better and actually I don't really care about this. I am more concerned with the fate of countries that are experiencing an ongoing crisis. but rarely do the media highlight them.
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Based on the latest news it looks like America will avoid defaulting on debt. Because from the news I've read, the President (Biden) has met with the chairman of the House of Representatives, Kevin McCarthy, and has made an agreement or reached an agreement to raise the Federal government's debt limit, which is up to $ 31.4 trillion dollars.
And with this agreement formed, America will be prevented from failing to pay its debts.
------------
Sourch/Reference : https://www.livemint.com/news/world/biden-and-mccarthy-reach-bipartisan-agreement-on-debt-ceiling-report/amp-11685233998757.html
And with this agreement formed, America will be prevented from failing to pay its debts.
------------
Sourch/Reference : https://www.livemint.com/news/world/biden-and-mccarthy-reach-bipartisan-agreement-on-debt-ceiling-report/amp-11685233998757.html
As always, what we are discussing and fearing is just a play by them or the media that has manipulated us all. This is not the first time they have reached an agreement to help the government avoid default. I don't know if the information I know is accurate, but someone told me that news of the US government's default has been repeated almost 80 times over the past century. I'm not sure about the number 80, but news of the US government default has spread steadily in recent years and has become all too familiar to all of us
.
Based on the latest news it looks like America will avoid defaulting on debt. Because from the news I've read, the President (Biden) has met with the chairman of the House of Representatives, Kevin McCarthy, and has made an agreement or reached an agreement to raise the Federal government's debt limit, which is up to $ 31.4 trillion dollars.
And with this agreement formed, America will be prevented from failing to pay its debts.
------------
Sourch/Reference : https://www.livemint.com/news/world/biden-and-mccarthy-reach-bipartisan-agreement-on-debt-ceiling-report/amp-11685233998757.html
And with this agreement formed, America will be prevented from failing to pay its debts.
------------
Sourch/Reference : https://www.livemint.com/news/world/biden-and-mccarthy-reach-bipartisan-agreement-on-debt-ceiling-report/amp-11685233998757.html
To be honest with all of you, I am not sure how the super power of the world ended up in such situation where they are expected to sell debt to the infinity in order to keep the country afloat... is this a normal thing in developed countries or this just happens in the United States?
I know that developing countries would never be able to sell debt like American does, because investors do not trust those countries as much as USA.
Also, if anyone is wondering what the 1 Trillion dollar coin plan, to avoid default is. You can check it out here:
Source: https://www.vox.com/22711346/trillion-dollar-coin-mintthecoin-debt-ceiling-beowulf
I know that developing countries would never be able to sell debt like American does, because investors do not trust those countries as much as USA.
Also, if anyone is wondering what the 1 Trillion dollar coin plan, to avoid default is. You can check it out here:
The trillion-dollar coin scheme, explained by the guy who invented it
Source: https://www.vox.com/22711346/trillion-dollar-coin-mintthecoin-debt-ceiling-beowulf
Quote
The debt ceiling standoff is getting very real, very quickly. On Friday, the Congressional Budget Office warned that the federal government could run out of cash within the first two weeks of June. While the Treasury Department has been using extraordinary measures since January to keep paying US debt, officials there have said those measures could be exhausted by June 1, potentially setting up the US for a catastrophic default later this summer.
Based on personal opinion, of course, a negative impact in more than 1 month will be seen in all investment assets including crypto. However, when viewed from a momentum standpoint, the impact is also a reversal of profits i.e. maximizing accumulation in Bitcoin. As this time approaches the halving, people will be taking much bigger risks even if the market conditions are unfavorable. They will not waste this opportunity by increasing the amount of their investment assets. After all, US economists have a huge influence on price spikes and falls. And after passing through the national debt phase, the surge will continue to increase the purchase value which is very significant.
Yes, it will create negative impact at the start but I think as years pass by, crypto will eventually get used to it and will never be affected. And people will eventually shift their focus into bitcoin and maximize their accumulation as much as they can. So in the long run, I guess this one is beneficial for crypto. But it also takes some risk before majority will start liking and dare to trust and invest into bitcoin. 
The only event that will be able to make mass adoptions for cryptocurrency is the collapse of banks in the United States. And this can only happen as a result of a default or an increase in rates by the Fed. About the default, I do not believe. This is another political struggle, and the US still has the opportunity to pay its obligations for many years.
I don't think many people believe this. What if this is the plan, to do something no one believes in? Simply raising the debt ceiling again is predictable, boring and not a solution to the problem, it seems that the period of increased rates promises to drag on and in such conditions it becomes too expensive to even service the debt, not to mention the possibility of starting to pay off the body of the debt itself. In just one day, May 15, the US government spent nearly $51 billion on interest on the debt. In the end it's not a matter of faith and the crowd is always wrong.If the concept raising the debt ceiling again is seen as a concrete step to reduce the budget deficit and as a solution, I think this will have serious economic consequences and the negative impact will be reborn. First, investors will lose confidence in the government and reduce their investment. Second, inflation and currency depreciation and lastly continued dependence on foreign creditors to finance budget deficits ultimately impacts economic and policy sovereignty in the long term.
I am not sure that any problems with the US domestic debt (under any scenario) will positively affect bitcoin. The problem is that cryptocurrencies have recently lost their mega investment attractiveness for the masses, plus, it turned out that the crypt is not a "safe haven" where you can survive the "financial storm" and not lose your savings.
What is highly likely to rise in price is gold.
If you believe in bitcoin's deflationary nature, then a US government default will have a positive impact on bitcoin. Because people will quickly look to other safe havens like metals and deflationary assets, and bitcoin will likely be of interest as well. What is highly likely to rise in price is gold.
I don't see any news or evidence that crypto is losing traction, it's still getting a lot of attention from the community, it's just that during the bear season, you won't see much positive news.
Given bitcoin's volatility, it's more suited to be a speculative asset than a purely safe haven, but if the US government defaults and the world economy falls into chaos, then it will become a safe haven.
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