What do these new people getting rich off crypto mean to the economy at large?

Anegg

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Quote from: dazbog835 on June 21, 2017, 10:47:20 AM

I apologize if this question is in any way naive.. I'm not really any kind of economics expert. I was just wondering what might happen to the world economy since there are so many new people getting rich off these cryptocurrencies... Just based off speculation or holding the right coins a lot of people have gained in wealth in the past years. And it doesn't seem to be slowing down.

So, you have a lot of 'new money' propagating even 'newer money'... and so on and so on, until a lot of people are pretty rich. Does this mean that there is a huge depression ahead of us? Surely just making more and more money can't go on forever, can it?

I'm sure I'm not seeing the big picture here so please, could someone explain it to me?

I think that not a lot of rich people have invested in Bitcoin, but people do become rich after investing in Bitcoin. After some research, I found that only 1 millionaire revealed that he had invested in Bitcoin. I think that Bitcoin provides an opportunity for someone to completely change their economic status without doing something illegal. Bitcoin is the red pill and you would think so if you have seen a number of millionaires Bitcoin has made.

Don't think huge depression will be ahead, only a select few members of the society has invested in bitcoin.

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Quote from: syaripudin on July 22, 2017, 01:26:50 AM

I do not think so because the rich people in general are not originated from bitcoin. Usually initially they are someone who had a wealth. So before they jump in bitcoin world initially they already have enough capital. Like investors in bitcoin yangmereka Start and have had the capital before .. so I'm not sure what you say.

No there are common people who have bought bitcoins and still holding for years and will become richer in near future but I do not think it will not impact economy in negative ways in any any dimensions. Because we do see on every revolution there ever some people found their fortunes and it does not impact the balance of normal people.

Yes, bitcoin boom will bring many new millionaires and it may lead to larger economy still it will work in positive way for entire humankind so we never need to worry on this.

syaripudin

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I do not think so because the rich people in general are not originated from bitcoin. Usually initially they are someone who had a wealth. So before they jump in bitcoin world initially they already have enough capital. Like investors in bitcoin yangmereka Start and have had the capital before .. so I'm not sure what you say.

dazbog835

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well, i meant tax, not necessarily govern. surely taxation will come, and legislation.

this buy-dump era can't go on forever, right?

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Quote from: dazbog835 on July 01, 2017, 02:29:20 AM

Quote from: cafucafucafu on July 01, 2017, 12:19:07 AM

No longer does the government have the ability to debase the currency that you hold in your hands. That's the beauty of BTC.

But is this sustainable? Won't governments inevitably find a way to govern crypto?

Well, if people within the Government find a method to make all the Internet servers and other electronic items to not work anymore then Bitcoin will survive through most of the disasters out there.
Bitcoin not being controlled by the Government is good, if Bitcoin was not built by the Government lol

dazbog835

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Quote from: cafucafucafu on July 01, 2017, 12:19:07 AM

No longer does the government have the ability to debase the currency that you hold in your hands. That's the beauty of BTC.

But is this sustainable? Won't governments inevitably find a way to govern crypto?

cafucafucafu

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Quote from: dazbog835 on June 21, 2017, 10:47:20 AM

I apologize if this question is in any way naive.. I'm not really any kind of economics expert. I was just wondering what might happen to the world economy since there are so many new people getting rich off these cryptocurrencies... Just based off speculation or holding the right coins a lot of people have gained in wealth in the past years. And it doesn't seem to be slowing down.

So, you have a lot of 'new money' propagating even 'newer money'... and so on and so on, until a lot of people are pretty rich. Does this mean that there is a huge depression ahead of us? Surely just making more and more money can't go on forever, can it?

I'm sure I'm not seeing the big picture here so please, could someone explain it to me?

Well there is one thing that is definite. Banks are panicking because they can't control people's wealths anymore. And the central banks are forced to regulate the market because they can't just stand there and wait for the takeover.

People getting rich off crypto means that they are able to have their own assets, away from the prying eyes of the government. No longer does the government have the ability to debase the currency that you hold in your hands. That's the beauty of BTC.

Though there is still an extremely small amount of people using bitcoin compared to everyone on Earth, so until mass adoption this is really just a small dent in the economy.

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Quote from: infofront on June 30, 2017, 01:20:12 PM

Every major technological revolution creates a new generation of millionaires/billionaires

This one is unique in that it will benefit everyone. In fact, the very poor may benefit from Bitcoin the most.
Bitcoin will greatly reduce monetary friction. For instance, it greatly reduces the cost of sending money internationally.
Bitcoin will ultimately spell doom for the "old world" monetary system we currently use. No longer will we all be taxed by central banks in the form of inflation.

I think along the same lines mostly

Though it is not so much about major technological revolutions but just about any significant breakthrough in a certain filed that creates a new pack of wealthy people. That said, I still don't think that Bitcoin belongs to this department. How come? People that got rich via Bitcoin basically didn't do anything at all. First, they were lucky to buy (mine) Bitcoin when it had been cheap and then sell it when it had become dear (or they continue to keep it). This simply cannot be compared to all other billionaires like Larry Page, Sergey Brin or Mark Zuckerberg (and their likes). All these people put enormous amount of time and effort into their businesses unlike Bitcoin nouveaux riches, who were just sitting idly. The bottom line is that most new Bitcoin millionaires (not sure about billionaires, if there are any) will likely lose their new wealth as fast as they acquired it. Even if they don't outright lose it, they will just eat it away eventually

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Quote from: dazbog835 on June 21, 2017, 10:47:20 AM

I apologize if this question is in any way naive.. I'm not really any kind of economics expert. I was just wondering what might happen to the world economy since there are so many new people getting rich off these cryptocurrencies... Just based off speculation or holding the right coins a lot of people have gained in wealth in the past years. And it doesn't seem to be slowing down.

So, you have a lot of 'new money' propagating even 'newer money'... and so on and so on, until a lot of people are pretty rich. Does this mean that there is a huge depression ahead of us? Surely just making more and more money can't go on forever, can it?

I'm sure I'm not seeing the big picture here so please, could someone explain it to me?

Basically everything is set for a massive recession due to poor wages, poorer people, everything shooting up in cost (well beyond inflation), housing bubble caused by "starter homes" being bought up by boomers and turned into expensive flip properties or rental properties resulting in money being thrown away into bank accounts that will never move. Student loans are also a major thing here.

Same thing is happening in crypto; old money is buying in, causing those with a vested interest (new money) to gain value and take money from the average money individual.

Basically put; everything is propagating a bubble and it will be much worse than 2008 at this rate. New money just pushes everything up. If they get value at the bottom of the barrel during the next recession, then they will walk away with a lot of value. If they just invest now, they're making a bubble that'll just have a bigger pop.

infofront

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Every major technological revolution creates a new generation of millionaires/billionaires.

This one is unique in that it will benefit everyone. In fact, the very poor may benefit from Bitcoin the most.
Bitcoin will greatly reduce monetary friction. For instance, it greatly reduces the cost of sending money internationally.
Bitcoin will ultimately spell doom for the "old world" monetary system we currently use. No longer will we all be taxed by central banks in the form of inflation.

MRlong

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Quote from: emezh10 on June 26, 2017, 06:13:48 AM

Quote from: grermezter on June 26, 2017, 06:01:45 AM

Quote from: dazbog835 on June 21, 2017, 10:47:20 AM

I apologize if this question is in any way naive.. I'm not really any kind of economics expert. I was just wondering what might happen to the world economy since there are so many new people getting rich off these cryptocurrencies... Just based off speculation or holding the right coins a lot of people have gained in wealth in the past years. And it doesn't seem to be slowing down.

So, you have a lot of 'new money' propagating even 'newer money'... and so on and so on, until a lot of people are pretty rich. Does this mean that there is a huge depression ahead of us? Surely just making more and more money can't go on forever, can it?

I'm sure I'm not seeing the big picture here so please, could someone explain it to me?

We should remember that the rich are taxed very heavily,some pay as much as 50% tax so its good news for the economy of the world, there will be more for the country and the cycle of life will just continue.

Rich people are taxed by government so by investing in cryptocurrency they can save they money by just putting it in crypto because the bitcoin is decentralized so that I think many big people now are investing in cryptocurrency because they are free from the tax. I think I will do that too.

In future, the government will find ways can tax cryptocurrency because they always want control crypto, maybe if can't do that, they will released a digital cash use technology blockchain for national bank and use as currency important after FIAT

audaciousbeing

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Quote from: dazbog835 on June 21, 2017, 10:47:20 AM

I apologize if this question is in any way naive.. I'm not really any kind of economics expert. I was just wondering what might happen to the world economy since there are so many new people getting rich off these cryptocurrencies... Just based off speculation or holding the right coins a lot of people have gained in wealth in the past years. And it doesn't seem to be slowing down.

So, you have a lot of 'new money' propagating even 'newer money'... and so on and so on, until a lot of people are pretty rich. Does this mean that there is a huge depression ahead of us? Surely just making more and more money can't go on forever, can it?

I'm sure I'm not seeing the big picture here so please, could someone explain it to me?

I believe its just new sets of Millionaires that is being made while those who are made already before venturing into bitcoin have to contribute marginally to the economy of their respective countries. Also, I see that not every one is getting rich at the same time because in the real sense, just like trading, its a zero sum game while some are making money and others are losing money and at the end of the day, summing up everything together means there is really no change whatsoever in the overall economy. So depression is not anything close to us.

dazbog835

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Thanks everyone for your answers. I can now see how naive my original line of thinking was. Seems pretty obvious now Cheesy

deisik

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Quote from: d5000 on June 26, 2017, 01:50:43 AM

Quote from: deisik on June 25, 2017, 03:54:35 PM

Bitcoin as such doesn't create wealth, it only redistributes it.

I put this into doubt. Bitcoin "as such" does create wealth, like every innovative service with new and useful characteristics. An example is the utility of cryptos for so different services like online gambling and international remittances, which is already visible (although gambling went mostly to altcoins). And in the future the biggest potential lies perhaps in "banking for the unbanked" / "banking without banks/middlemen"

I basically agree with that

But the question was not about that. It was about having "a lot of 'new money' propagating even 'newer money'". It is certainly not about creating "innovative service with new and useful characteristics". Further, this effect, while undeniable, in minuscule at best, and right now Bitcoin is no more than a speculative asset which helps move wealth from one hands into other hands (i.e. redistribute already existing wealth)

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Quote from: Ewinsane on June 23, 2017, 06:18:35 AM

Quote from: dazbog835 on June 21, 2017, 10:47:20 AM

I apologize if this question is in any way naive.. I'm not really any kind of economics expert. I was just wondering what might happen to the world economy since there are so many new people getting rich off these cryptocurrencies... Just based off speculation or holding the right coins a lot of people have gained in wealth in the past years. And it doesn't seem to be slowing down.

So, you have a lot of 'new money' propagating even 'newer money'... and so on and so on, until a lot of people are pretty rich. Does this mean that there is a huge depression ahead of us? Surely just making more and more money can't go on forever, can it?

I'm sure I'm not seeing the big picture here so please, could someone explain it to me?

Not sure what you meant by 'people getting rich off crypto' - no they aren't in the first place because of crypto; they are becoming rich, if so, for their efforts and strategies. The only difference a crypto currency can contribute is a decentralized mode of payments.

If we say that the people the initial investors of the bitcoin were rich and the other users who at first provided services for the bitcoin are now becoming rich with it. It can be defended as the people earned bitcoin and invested them into alts gaining more of it and even holding Bitcoin and selling it for a higher price.

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Well to the economy at large it probably isn't going to be much in the least, this probably due to the amount of people who are already becoming richer and poorer on the daily so it's not going to show too much of a change in the overall economy. Also, a lot of the people that are becoming rich are becoming rich on paper, they haven't come to the point where they've REALIZED (sold) their profits and have put that gain right back into their banks or wallets. So it's unknown if all of these people are going to stay rich once everyone goes to sell their shitcoins, shitICO's, and so on and so forth.

It's going to do nothing to the economy at large, our economies have seen crazier things before.

Oralmat

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Quote from: taxmanmt5 on June 21, 2017, 02:10:19 PM

Quote from: dazbog835 on June 21, 2017, 10:47:20 AM

I apologize if this question is in any way naive.. I'm not really any kind of economics expert. I was just wondering what might happen to the world economy since there are so many new people getting rich off these cryptocurrencies... Just based off speculation or holding the right coins a lot of people have gained in wealth in the past years. And it doesn't seem to be slowing down.

So, you have a lot of 'new money' propagating even 'newer money'... and so on and so on, until a lot of people are pretty rich. Does this mean that there is a huge depression ahead of us? Surely just making more and more money can't go on forever, can it?

I'm sure I'm not seeing the big picture here so please, could someone explain it to me?

You need a real understanding of the economy and how it works to be around the trading world and there are very few that have that here and it appears we now have a new one. Making money in any form makes more money for the economy, it is a base and core element of the economy and taught in high school.

Moving money is good money, crime is fine, war is fine and all these aspects are just fine, anything that causes a movement in the system makes the system stronger, those without any understanding will find that they are going to be eaten alive and will not survive, which, again, is a movement in the system and that small amount of $10,000 or more that is wasted by them trying to become something other than what society has chosen for them only provides greater support for the underlying low income labor force and that helps support the system above it all.

Xavofat

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Did you see that ludicrous display last night?

Quote from: emezh10 on June 26, 2017, 06:13:48 AM

Quote from: grermezter on June 26, 2017, 06:01:45 AM

Quote from: dazbog835 on June 21, 2017, 10:47:20 AM

I apologize if this question is in any way naive.. I'm not really any kind of economics expert. I was just wondering what might happen to the world economy since there are so many new people getting rich off these cryptocurrencies... Just based off speculation or holding the right coins a lot of people have gained in wealth in the past years. And it doesn't seem to be slowing down.

So, you have a lot of 'new money' propagating even 'newer money'... and so on and so on, until a lot of people are pretty rich. Does this mean that there is a huge depression ahead of us? Surely just making more and more money can't go on forever, can it?

I'm sure I'm not seeing the big picture here so please, could someone explain it to me?

We should remember that the rich are taxed very heavily,some pay as much as 50% tax so its good news for the economy of the world, there will be more for the country and the cycle of life will just continue.

Rich people are taxed by government so by investing in cryptocurrency they can save they money by just putting it in crypto because the bitcoin is decentralized so that I think many big people now are investing in cryptocurrency because they are free from the tax. I think I will do that too.

Bollocks. You shouldn't trust governments not to tax the air you're breathing. In the countries I can think of off the to of my head, crypto profits are subject to capital gains tax.

Besides, it's not like rich people love shovelling their cash into crypto to watch it fly up and down by ten percent in a day.

emezh10

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Quote from: grermezter on June 26, 2017, 06:01:45 AM

Quote from: dazbog835 on June 21, 2017, 10:47:20 AM

I apologize if this question is in any way naive.. I'm not really any kind of economics expert. I was just wondering what might happen to the world economy since there are so many new people getting rich off these cryptocurrencies... Just based off speculation or holding the right coins a lot of people have gained in wealth in the past years. And it doesn't seem to be slowing down.

So, you have a lot of 'new money' propagating even 'newer money'... and so on and so on, until a lot of people are pretty rich. Does this mean that there is a huge depression ahead of us? Surely just making more and more money can't go on forever, can it?

I'm sure I'm not seeing the big picture here so please, could someone explain it to me?

We should remember that the rich are taxed very heavily,some pay as much as 50% tax so its good news for the economy of the world, there will be more for the country and the cycle of life will just continue.

Rich people are taxed by government so by investing in cryptocurrency they can save they money by just putting it in crypto because the bitcoin is decentralized so that I think many big people now are investing in cryptocurrency because they are free from the tax. I think I will do that too.

grermezter

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Quote from: dazbog835 on June 21, 2017, 10:47:20 AM

I apologize if this question is in any way naive.. I'm not really any kind of economics expert. I was just wondering what might happen to the world economy since there are so many new people getting rich off these cryptocurrencies... Just based off speculation or holding the right coins a lot of people have gained in wealth in the past years. And it doesn't seem to be slowing down.

So, you have a lot of 'new money' propagating even 'newer money'... and so on and so on, until a lot of people are pretty rich. Does this mean that there is a huge depression ahead of us? Surely just making more and more money can't go on forever, can it?

I'm sure I'm not seeing the big picture here so please, could someone explain it to me?

We should remember that the rich are taxed very heavily,some pay as much as 50% tax so its good news for the economy of the world, there will be more for the country and the cycle of life will just continue.

Topic: What do these new people getting rich off crypto mean to the economy at large? (Read 1849 times)