Topic: US Debt Default: Good or bad for crypto? - page 4. (Read 769 times)
It is always the same scenario, whoever is in charge when needs a ceiling increase will ask the other party to help them, the other party won't, and they will negotiate something. Just recently there was a video of Trump saying they need to increase the ceiling and that there is no need for negotiating, it is a must and everyone should approve it. This shows two things, first of all democrats who wanted something in return when Trump wanted to increase it, and secondly, Republicans who didn't want to negotiate back then wanted it now. So as you can see it is a ruthless cycle where every party gets what they want, and they raise it just enough that the other party will need it again later on. No way to get out of it, it's a cycle that will keep on happening.
A lot of noise about the upcoming default. Usually default or devaluation is done as in the video. The President reassures people, says that nothing will happen, and then they declare a default
There will be no default 1998. President of Russia Boris Nikolayevich Yeltsin
https://www.youtube.com/watch?v=GuGShb88xJQ
And in the United States, on the contrary, they scare people with a default, which means that it probably will not happen.
There will be no default 1998. President of Russia Boris Nikolayevich Yeltsin
https://www.youtube.com/watch?v=GuGShb88xJQ
And in the United States, on the contrary, they scare people with a default, which means that it probably will not happen.
The noise from the US government default is just a competition of politicians, they have the dirtiest politics in the world. The parties will be ready to do whatever it takes to make the other party lose influence and people's trust. We won't know anything, and what we read in the newspapers is most likely just politicians' manipulation of mob mentality. The US government is the one holding all the highest power of the world economy, their default will be very unlikely.
As with crises of economy, just like what happened during 2020, it could safely be inferred that in the event a recession comes in no thanks to the US defaulting on its debt, there'd be a brief period of chaos in the bitcoin industry as people scramble away to find money from wherever they could. And then once the dust has settled and the fog is cleared, people will come back into bitcoin investing onto it and maybe even have bitcoin be put in a pretty nice situation once again just like what happened during 2020.
In any case, I wouldn't want to find out how it goes even though the clearest answer is that we may have to suffer another economic collapse in our lifetimes, and so I guess I'll just have to wing it lmao. Hopefully bitcoin bounces back because it definitely will drop in value due to the amount of people taking their money out for stuff that they would need, it's all just a matter of how long would we have to suffer that.
In any case, I wouldn't want to find out how it goes even though the clearest answer is that we may have to suffer another economic collapse in our lifetimes, and so I guess I'll just have to wing it lmao. Hopefully bitcoin bounces back because it definitely will drop in value due to the amount of people taking their money out for stuff that they would need, it's all just a matter of how long would we have to suffer that.
A lot of noise about the upcoming default. Usually default or devaluation is done as in the video. The President reassures people, says that nothing will happen, and then they declare a default
There will be no default 1998. President of Russia Boris Nikolayevich Yeltsin
https://www.youtube.com/watch?v=GuGShb88xJQ
And in the United States, on the contrary, they scare people with a default, which means that it probably will not happen.
There will be no default 1998. President of Russia Boris Nikolayevich Yeltsin
https://www.youtube.com/watch?v=GuGShb88xJQ
And in the United States, on the contrary, they scare people with a default, which means that it probably will not happen.
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.
What is highly likely to rise in price is gold.
It is good and bad at the same time.
It is bad because in the case of an actual default by the government of the United States, there is no way the local and the global markets will stay unchanged to such unprecedented news, so I would expect the price of Bitcoin and other crypto currencies to go down in the short term.
On the other hand, those who were a bit skeptical on Bitcoin and decentralization may start to see why such things are important, in the current economy, Bitcoin cannot default because it is a networks about debit and those network which allow debt through smarth contracts mostly work on over-collateral and not on printing money out no where.
It is bad because in the case of an actual default by the government of the United States, there is no way the local and the global markets will stay unchanged to such unprecedented news, so I would expect the price of Bitcoin and other crypto currencies to go down in the short term.
On the other hand, those who were a bit skeptical on Bitcoin and decentralization may start to see why such things are important, in the current economy, Bitcoin cannot default because it is a networks about debit and those network which allow debt through smarth contracts mostly work on over-collateral and not on printing money out no where.
~snip~
Whenever the US raises the debt ceiling or not, we cannot deny that the American economy is in a very bad shape. It could be in a point where there's no room for recovery. With the de-dollarization process already in effect, we can expect anything in the future. Maybe this will serve as a cataclysm for crypto to reach new ATHs? I wouldn't be surprised if BTC goes to $1m because of this. We cannot predict the future, so let's hope for the best. Just my thoughts
I agree that the US economy is also in bad shape, but if we say they will default or the USD will lose its lead, I don't think that will happen anytime soon. They are still the country that holds the world's money printing machine, so it is impossible for them to collapse, or someone will replace them. The process of de-dollarization of the BRICS countries is just the beginning, nothing can be confirmed at this point. And don't forget, with the 2008 economic crisis, things were also terrible, and they got through it all, I don't think they will fail this time.
So can't expect bitcoin to benefit or have a chance to rise to $1 million because of this, that's too vague and far-fetched to think about.
Even thought that I am almost sure the United States won't default and will manage to get out of this sticky situation, I cannot blame reporters or economists for thinking otherwise: the quality, personality and even motivations of the Leaders have changed much in comparison to what we see during the crisis of 2008.
We could argue that back then, politicians we more sober and less focused in the cult of personality of the party. Now Politicians are putting party over nation, otherwise, this debt ceiling debate would not exist, and they would try to adjust the spending during the next time the debate on the budget of the nation was due
Technically if US regime defaults on its debt it would crash US economy and the dollar. Which means technically bitcoin price should shoot up to the moon in a very short time.
However, in reality there has been a huge amount of market manipulation and propaganda against bitcoin that over the past couple of years (mostly since 2020) has been trying to convince people that whenever US market dump, then bitcoin should dump too. That means there is a good chance that when the US markets and US dollar dumps, so would bitcoin.
In long term on the other hand, I'd say bitcoin price will soar because of the severe economic problems United States is facing and how the dollar has been getting dumped as reserve currency.
However, in reality there has been a huge amount of market manipulation and propaganda against bitcoin that over the past couple of years (mostly since 2020) has been trying to convince people that whenever US market dump, then bitcoin should dump too. That means there is a good chance that when the US markets and US dollar dumps, so would bitcoin.
In long term on the other hand, I'd say bitcoin price will soar because of the severe economic problems United States is facing and how the dollar has been getting dumped as reserve currency.
It is good and bad at the same time.
It is bad because in the case of an actual default by the government of the United States, there is no way the local and the global markets will stay unchanged to such unprecedented news, so I would expect the price of Bitcoin and other crypto currencies to go down in the short term.
On the other hand, those who were a bit skeptical on Bitcoin and decentralization may start to see why such things are important, in the current economy, Bitcoin cannot default because it is a networks about debit and those network which allow debt through smarth contracts mostly work on over-collateral and not on printing money out no where.
It is bad because in the case of an actual default by the government of the United States, there is no way the local and the global markets will stay unchanged to such unprecedented news, so I would expect the price of Bitcoin and other crypto currencies to go down in the short term.
On the other hand, those who were a bit skeptical on Bitcoin and decentralization may start to see why such things are important, in the current economy, Bitcoin cannot default because it is a networks about debit and those network which allow debt through smarth contracts mostly work on over-collateral and not on printing money out no where.
~snip~
Whenever the US raises the debt ceiling or not, we cannot deny that the American economy is in a very bad shape. It could be in a point where there's no room for recovery. With the de-dollarization process already in effect, we can expect anything in the future. Maybe this will serve as a cataclysm for crypto to reach new ATHs? I wouldn't be surprised if BTC goes to $1m because of this. We cannot predict the future, so let's hope for the best. Just my thoughts
I agree that the US economy is also in bad shape, but if we say they will default or the USD will lose its lead, I don't think that will happen anytime soon. They are still the country that holds the world's money printing machine, so it is impossible for them to collapse, or someone will replace them. The process of de-dollarization of the BRICS countries is just the beginning, nothing can be confirmed at this point. And don't forget, with the 2008 economic crisis, things were also terrible, and they got through it all, I don't think they will fail this time.
So can't expect bitcoin to benefit or have a chance to rise to $1 million because of this, that's too vague and far-fetched to think about.
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. 
I think that in the event of a default, in the short term, the price of bitcoin will fall into an area of increased turbulence due to a head-on collision of two strong trends - on the one hand, the price will drop sharply, because bitcoin belongs to the class of high-risk financial assets, on the other hand, the price will rise sharply, because that the network hashrate is stable, blocks continue to be mined at intervals of an average of every ten minutes, and a fall in the dollar automatically means an increase in bitcoin in the btc/usd pair. I agree, perhaps a flash crash is possible, with an immediate or not so immediate pump due to fluctuating exchange rates. Just want to add that any failure of any FIAT is positive for Bitcoin in the long run.
The ideal scenario for Bitcoin, in my opinion, would not be a sudden failure of the FIAT system but rather a steady immigration of the population to more decentralized alternatives, as they realize the disadvantages FIAT can have in comparison to trustless systems like Bitcoin.
Weird enough, as the market works nowadays most of the liquidity of Bitcoin comes from the USD and USD pegged tokens.
Leaving that to one side, I still have the hope Republicans won't leave their markets to suffer over spending arguments, sounds contrary to what they are supposed to stand for...
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.
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.
I think that in the event of a default, in the short term, the price of bitcoin will fall into an area of increased turbulence due to a head-on collision of two strong trends - on the one hand, the price will drop sharply, because bitcoin belongs to the class of high-risk financial assets, on the other hand, the price will rise sharply, because that the network hashrate is stable, blocks continue to be mined at intervals of an average of every ten minutes, and a fall in the dollar automatically means an increase in bitcoin in the btc/usd pair. I agree, perhaps a flash crash is possible, with an immediate or not so immediate pump due to fluctuating exchange rates. Just want to add that any failure of any FIAT is positive for Bitcoin in the long run.
The ideal scenario for Bitcoin, in my opinion, would not be a sudden failure of the FIAT system but rather a steady immigration of the population to more decentralized alternatives, as they realize the disadvantages FIAT can have in comparison to trustless systems like Bitcoin.
Weirdly enough, as the market works nowadays most of the liquidity of Bitcoin comes from the USD and USD pegged tokens.
Leaving that to one side, I still have the hope Republicans won't leave their markets to suffer over spending arguments, sounds contrary to what they are supposed to stand for...
Not an expert on this matter but based on the opinions of the good finance experts that I happen to watch, they're suggesting people to keep off their hands to any asset that's pegged to USD. And they're suggesting people to buy real estate, gold, silver and even Bitcoin. All of them are telling the same thing and that's the US dollars collapsing. But we will never know until we finally get into that part that they've already defaulted. What we're going to see next? Another printing saga? Possible and if that happens, that's gonna be good for crypto but not on them and again, a domino effect to the world's economy which will increase inflation again. However, we've been used to these inflation hikes.
I think that's not really a shocking news, that's not really something you need smart people to tell you neither, its a very simple calculation. USA has high debt, they are discussing making it higher, the higher the debt they have, the less value it is, plus that means they can print more money, the more dollar you print the less value it has. Combine these two together now, and you have a lot less valued dollar and that would be very easy to see, from a mile away. I believe that dollar will be much less valued very soon and that will not be a big deal, it will be fine because it keeps losing value but at the same time other fiat currencies lose value to, haven't ruble already did? What about sterlin, hell even Euro did. So, it is not really that much of a big deal for dollar to lose value neither.
It is good and bad at the same time.
It is bad because in the case of an actual default by the government of the United States, there is no way the local and the global markets will stay unchanged to such unprecedented news, so I would expect the price of Bitcoin and other crypto currencies to go down in the short term.
On the other hand, those who were a bit skeptical on Bitcoin and decentralization may start to see why such things are important, in the current economy, Bitcoin cannot default because it is a networks about debit and those network which allow debt through smarth contracts mostly work on over-collateral and not on printing money out no where.
It is bad because in the case of an actual default by the government of the United States, there is no way the local and the global markets will stay unchanged to such unprecedented news, so I would expect the price of Bitcoin and other crypto currencies to go down in the short term.
On the other hand, those who were a bit skeptical on Bitcoin and decentralization may start to see why such things are important, in the current economy, Bitcoin cannot default because it is a networks about debit and those network which allow debt through smarth contracts mostly work on over-collateral and not on printing money out no where.
Prices will inevitably dip because they are tied to the USD. But knowing that BTC is deflationary by design, the effects will be shortlived. I think a US default would be a huge opportunity for investors to buy crypto at a discount. The majority of the people will think crypto is dying because of their inexperience in the industry. But crypto veterans like myself know there's more to crypto than "meets the eye".
Whenever the US raises the debt ceiling or not, we cannot deny that the American economy is in a very bad shape. It could be in a point where there's no room for recovery. With the de-dollarization process already in effect, we can expect anything in the future. Maybe this will serve as a cataclysm for crypto to reach new ATHs? I wouldn't be surprised if BTC goes to $1m because of this. We cannot predict the future, so let's hope for the best. Just my thoughts
If the US defaults on debt then I read that it could trigger more increase in the number of unemployed there. I don't remember what points became the background until I got there. But the point is defaulting on debt means that the economic conditions there are really at the worst level at that time. Even if the economic conditions in a country are bad, all investment assets such as stocks and crypto there will be strongly affected. and Bitcoin too. will definitely be affected and have a fairly sharp decline. but it won't last long because even though the US is in bad condition but I actually see the Asian market is currently excited and has an extraordinary positive increase. be it in crypto or in any other way. so Bitcoin will correct and then bounce back because the buy demand level from Asia will be very strong.
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.
I think that in the event of a default, in the short term, the price of bitcoin will fall into an area of increased turbulence due to a head-on collision of two strong trends - on the one hand, the price will drop sharply, because bitcoin belongs to the class of high-risk financial assets, on the other hand, the price will rise sharply, because that the network hashrate is stable, blocks continue to be mined at intervals of an average of every ten minutes, and a fall in the dollar automatically means an increase in bitcoin in the btc/usd pair. I agree, perhaps a flash crash is possible, with an immediate or not so immediate pump due to fluctuating exchange rates. Just want to add that any failure of any FIAT is positive for Bitcoin in the long run.
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.
A default wouldn't collapse the banks necessarily -- banks do more than just hold USD. If their purchasing power was below their total liabilities, though, then their in a lot of trouble. Even in the event of a default, I'd expect it would create a bump in crypto for the shock value that "U.S. defaults on debt" would create, but not the rise you would see if a major currency collapsed. As long as the U.S. has a strong military and an economy that isn't in disarray, a default would not trigger an entire collapse. Think of USD as being a proxy of its military strength + economy (as well as other factors, of course). If it were not for its military and GDP, would anyone actually trust a country/currency with 30 trillion in debt?
From what you in the first paragraph of the op, I didn't see any link between US politics and cryptocurrency. Though that is my own understanding. Cryptocurrency has nothing to do with US national debt Profile but if they the US Government like to buy cryptocurrency and store it to clear their debt then that will be a good idea of the government and it is a positive one but as for now nothing like that is there so they should take their politics to their dollar economy way. If us government default crypto then it will hail positive and not negative. Because US is the world power so if they default it then force of adoption will be very high.
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.
Not an expert on this matter but based on the opinions of the good finance experts that I happen to watch, they're suggesting people to keep off their hands to any asset that's pegged to USD. And they're suggesting people to buy real estate, gold, silver and even Bitcoin. All of them are telling the same thing and that's the US dollars collapsing. But we will never know until we finally get into that part that they've already defaulted. What we're going to see next? Another printing saga? Possible and if that happens, that's gonna be good for crypto but not on them and again, a domino effect to the world's economy which will increase inflation again. However, we've been used to these inflation hikes. 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.
US politicians and economists are worried about the possibility of the United States defaulting on its national debt. In the event of a default, both traditional financial markets and cryptocurrency markets are expected to experience negative consequences. As the world's reserve currency, the US dollar's instability could lead to market turbulence, affecting stocks and cryptocurrencies alike. However, the Bitcoin market reaction is influenced by various factors, including investor sentiment. In summary, a US default would likely have a detrimental short-term effect on the Bitcoin market due to the erosion of trust in the USD.
In the short term, a US default could create significant turmoil and instability in the market. This could lead to a general downturn in financial markets. In times of economic inflation, it is common for investors to adopt a risk-averse approach and may choose to sell their high-risk assets in order to move into more stable options.
On the other hand, default could also act as a catalyst to highlight the importance of bitcoin's decentralization and value. The fact that Bitcoin operates on a decentralized network and is not governed by central authorities could make it an attractive alternative for those looking for a hedge against risks related to the traditional financial system. The growing recognition of Bitcoin's unique properties could lead to renewed interest in the cryptocurrency in the long term.
On the other hand, default could also act as a catalyst to highlight the importance of bitcoin's decentralization and value. The fact that Bitcoin operates on a decentralized network and is not governed by central authorities could make it an attractive alternative for those looking for a hedge against risks related to the traditional financial system. The growing recognition of Bitcoin's unique properties could lead to renewed interest in the cryptocurrency in the long term.
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.True and understandable to be skeptical about conventional approaches such as raising the debt ceiling, especially when facing a prolonged period of rising interest rates especially when compared to the current conditions pose significant challenges. As you mentioned, the staggering daily spending on interest payments highlights the gravity of the situation.
If could be a planned default after all they want to destroy the fiat system to launche the CBDC. Although CBDC is somehow just a digital form of fiat system, the difference is that they could control the people from now on.
I believe they technically will not default but just completely replace with CBDC which its where they will decide to raise the debt ceiling.
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