US Debt Default: Good or bad for crypto? - page 6.

stompix

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Quote from: avikz on May 23, 2023, 01:37:07 PM

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.

Sarah Azhari

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Quote from: Abiky on May 23, 2023, 11:15:47 AM

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.

So, as you said, stock, fiat, and any pair with USD will crash also. And we know crypto in all exchanges is a lot paired with USD, especially USDT. I am pretty sure it will be affected. But, like many posts above, it's not long, it's the same as the correction market. If this continues, people will leave USD and continue to another stable fiat like Euro, Pound, and Yen. Or maybe get an experiment back to Gold.

But, I am not worried so much, US Dollar is used in many countries for international trade. This means the US government can resolve the debt by printing the dollars. before doing that, they have to save the budget, they should not be involved in war anymore, don't send war guns, and not interfere in another conflicting country.

And I hope the US government did not sell the 205,515 Bitcoin held. If they sell Bitcoin to pay debts, the crash will happen for a long.

cabron

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The date will be on June 1. The defaut could drag the prices down and its already happening in anticipation of it. But then by June 1 its also the date where the Chinese investors may also legally buy crypto assets through their sandbox Hongkong.

Crypto prices may just dip for few weeks and then start climbing again which is a good opportunity.

dansus021

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there is a thread that discussed about this event https://bitcointalksearch.org/topic/is-the-us-default-a-reality-5453021 and pretty much all over the internet is talk about this.

and what you said its pretty much true if the US really going to default which currently is very very thin margin to be honest hahaha. the stock market and pretty much everyone else will collapse for couple of day or even month until US figure it out.

Even tho country like BRICS and ASEAN says on the news that they will be using less and less US Dollar but it is still at the phase of paper/development and has not been realised yet, so the worst scenario when US is Default it would be huge hit to the rest of the world.

Is it bad for crypto maybe for the beginning it would hit crypto market too but after this happen I would say the adoption of crypto will pretty much higher than ever that can drive the price to the moon

Smartprofit

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Quote from: Abiky on May 23, 2023, 11:15:47 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.

In my opinion, the default in the US will start a global recession.

We will see a drop in business activity worldwide. Countries that export metals and hydrocarbons will suffer the most. In these countries, the situation with the economy will be catastrophic.

The United States will also suffer, but to a lesser extent. In Europe, everything will be quite stable, and the euro will rise against the US dollar.

Gold and Bitcoin will rise in price very strongly.

m2017

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Quote from: Abiky on May 23, 2023, 11:15:47 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.

If politicians and economists talk about default, then most likely they will not allow it. Here it is necessary to proceed from the opposite. That is, if a default were possible, then it would hardly be talked about. Think back to 2008 and the mortgage crisis that created a chain reaction with crises around the world. Then after all, only a few voiced the approaching collapse. I want to say that the words of politicians need to be reversed. They are still talkers and liars. If they talk about something very often, then it will not happen. I won’t say that it works 100%, but this trend can be traced 100% of them.

In any case, the default will have a negative impact in all sectors of the financial world, including cryptocurrencies. Another thing is that it is better to rely on long-term prospects with cryptocurrencies, especially if it is bitcoin. Then all current problems, such as defaults and crises, will not be significant.

hyudien

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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.

avikz

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Quote from: Abiky on May 23, 2023, 11:15:47 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.

I doubt US will be defaulting in it's debt. 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.

Corporates are sitting on cash piles so they will need to find an alternative solution to park their funds for short to medium term is US government starts defaulting. But this will not be great situation for the rest of the world. The world economy may go into a deep recession which will take longer to recover.

BIT-BENDER

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Quote from: Abiky on May 23, 2023, 11:15:47 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.

I am still trying to understand how an effect on the USD would affect the crypto-currency space? Yes USD is the general standard for value, the only effect it would have in crypto-currency market is the crypto dollar value.
Coins like the stable coin which is pegged on the US dollars would definitely be affected in value because it takes the value of the US dollars.

But in terms of stocks, and even other countries currency an effect on the US dollars would also affect them, I think that's why the decentralized system need to be in place to prevent the global control of the US dollars or any other currencies .

Hispo

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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.

be.open

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Quote from: Abiky on May 23, 2023, 11:15:47 AM

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.

hatshepsut93

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Quote from: Abiky on May 23, 2023, 11:15:47 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.

This is just US politics, both sides tries to push for its own ideologic vision of running economy - "small government" vs "taxing the rich". I would be surprised if there will be an actual default, it would create too much problems for both parties, not to mention the American people, because even if it would be a small technical default, it would undermine the confidence in US governmetn and US economy.

As for impact on crypto, I'd say it will likely be bad, based how in the past stock market crashes and inflation and global economic turmoil was bad for Bitcoin's price. Despite the narrative of safe haven, it seems Bitcoin's growth happens when investors have spare money that they can put on high risk investments.

Abiky

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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.

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