Topic: What do these new people getting rich off crypto mean to the economy at large? - page 2. (Read 1849 times)
June 26, 2017, 04:29:36 AM
It is poverty that Couse economic depression and not wealth and prosperity. We should be grateful for what crypto currencies has made us intend of seeing it as economic sabotage and repression. May the God of crypto currencies be with us all.
June 26, 2017, 03:18:34 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?
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 really, at least for now.
Right now the players in bitcoin is very limited. I think the true bitcoin whales, ones that hold more than 1000 BTC which equates to quite a nice chunk of money individually is probably less than 200.
Speculation of bitcoin simply means that some people lose, some people win. So whales are basically playing each other, in a pvp game, if you like.
Honestly, bitcoin price does not matter that much. The most important thing is who and how many people are using it? If bitcoin can help the unbanked in third world countries with instant, safe and costless transactions, but is only worth $100, that would be fine.
June 26, 2017, 01:50:43 AM
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".
That's also why the more pessimistic answers of this thread do not convince me. The cryptocurrency ecosystem as a whole does create genuine innovations and satisfies demands for some people. The effect may be still small because most of the "price growth" of Bitcoin is based exclusively on speculation, but it is already a fact. And with every potential new Bitcoin user, the ecosystem also potentially grows, opening room for new services and so the "genuine wealth".
You could imagine Bitcoin like a share of a company that comprises the whole Bitcoin ecosystem. It's true that the "new Bitcoin rich" often do not apport much to the ecosystem but the minority that invests their profits in well thought-out Bitcoin/crypto services moves the train forward.
June 25, 2017, 03:54:35 PM
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?
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 I can explain it to you
The core point you should understand is that Bitcoin as such doesn't create wealth, it only redistributes it. For example, some very early Bitcoin adopter mined a few thousand bitcoins essentially at no cost. Let's assume that he recently sold his stash at 3,000 dollars per coin, so now he is a dollar millionaire. But does it mean that anything changed at a larger scale? He just collected dollars from a few (or many) people, but the total amount of dollars didn't change. Basically, nothing has changed and wouldn't change until Bitcoin manages to get into real economy and compete with dollars (or any other fiat currency) there as a genuine means of payment for goods and services
June 25, 2017, 02:38:01 PM
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?
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, that's true that a lot of people become rich after investing in crypto currency and the list of going larger day by day. However, you should look at the brighter picture as well. A lot of people becoming wealthy means their purchasing powers are also increasing. They are spending more and more money is flowing in to the economy. Which is good for the economy as a whole.
I foresee no reason for depression because these currencies are regulated by any authority. Also crypto currency has paved way for the employment. People are living on their own through this crypto currency. So As of now, I don't see any bad things to happen in near future.
June 25, 2017, 02:28:42 PM
There are not that many people who have become rich off Bitcoin. Many people were early investors, but instead of holding onto their coins, they sold them and that train kept on going so Bitcoin was spread out quite a lot. Because of this, there are not many people in the world right now who are rich because of Bitcoin. The ones that are rich, they don't really make much of an impact on the world's economy at all. Pretty much everyone who became rich off Bitcoin are just millionaires, they aren't even close to becoming billionaires. Millionaires aren't the ones who have an impact on the economy, only billionaires and above do.
Yeah the bitcoin in the world today has a great contribution towards making many people rich. The number of the people became rich with the Bitcoin may be not much high but still we cannot deny the fact that the bitcoin is playing its part in making the life of many people. 
June 25, 2017, 11:54:23 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?
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?
It depends whether the government of that country is open in legalizing and regulating cryptocurrencies. For example you hold your bitcoins and didn't sell it when your country doesn't recognized cryptocurrencies as money then it won't change the economy but when you sell it for cash then it might add up in the usage of fiat and it may benefit the economy. I think the economy will be benefited if btc provide less traffic in transactions and if it help the people everyday lives be much easier because of extra income and I think before that happens they will add some taxes on cryptocurrencies.
but when you invest and make profit like this and get rich you are just taking the money out of someone else's pocket! someone else is taking the money out of circulation, hands it to you and takes bitcoin and you are now owner of that money.
so in the end nothing is changed, the money just changed hand. and that is true for every trade and profit earned that way.
June 25, 2017, 10:50:54 AM
You seems to be worried what if all of us will get rich and no one can be poor...who might be working for us since all have the money to buy everything? Ok...it really sounds naive but I think can still be a valid question. Okay, maybe you assumed that Bitcoin and other altcoins are getting big maybe there would be no place for such growth. Actually, the current market capitalization of all the cryptocurrencies around is still peanuts compared to the global economy. In fact, we are just getting started in comparison to decades and centuries of existence of the current financial system.
In other words, there is nothing to be worried about. Just continue on "hoarding" some coins because am sure they can be growing fast and soon you can enjoy the fruits of your own labor. Time will see where this cryptocurrency revolution can be leading us as we can not predict the future in details.
In other words, there is nothing to be worried about. Just continue on "hoarding" some coins because am sure they can be growing fast and soon you can enjoy the fruits of your own labor. Time will see where this cryptocurrency revolution can be leading us as we can not predict the future in details.
June 25, 2017, 07:38:14 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?
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?
It depends whether the government of that country is open in legalizing and regulating cryptocurrencies. For example you hold your bitcoins and didn't sell it when your country doesn't recognized cryptocurrencies as money then it won't change the economy but when you sell it for cash then it might add up in the usage of fiat and it may benefit the economy. I think the economy will be benefited if btc provide less traffic in transactions and if it help the people everyday lives be much easier because of extra income and I think before that happens they will add some taxes on cryptocurrencies.
June 25, 2017, 04:21:50 AM
they might not be rich by the time next halving comes and even in the next 5 years.
What do you mean by the next halving? Has this happened before? I understand there are corrections, but a trend I see is an upwards one all the way with major or minor corrections along the way. Am I wrong?
yes before or after the halving the value usually go high, and this last halving was not an exception, i remember the value went almost 2x after the halving, peak was around $800
so the next halving could help the value go even higher, but we are talking about 2020 here, still a long way to go
June 25, 2017, 03:51:11 AM
they might not be rich by the time next halving comes and even in the next 5 years.
What do you mean by the next halving? Has this happened before? I understand there are corrections, but a trend I see is an upwards one all the way with major or minor corrections along the way. Am I wrong?
June 25, 2017, 01:29:28 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?
Nothing will happen to the world even if many new people get rich off cryptocurrency. The only effect I have seen is that these new millionaires because of cryptocurrency encourages others who still don't believe in cryptocurrency to try and invest in it just because there are many new rich people now because of it but the truth is the value right now is so high, they might not be rich by the time next halving comes and even in the next 5 years. 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?
June 24, 2017, 11:55:31 PM
There is nothing to be alarmed because the total global population is now beyond seven billion and yet the cryptocurrency market is still so young and small. And the money made by many cryptocurrency millionaires would always go back into the real economy which can help to induce more growth stimulus.
Cryptocurrency for all of its hypes is still a small boat in the middle of the big ocean. It can be growing by leaps and bounds but still compared to many countries GDP and big corporations' stock value we still have many rice (I am an Asian, you see) to eat to get there.
We should instead be happy that finally there is a great opportunity to build wealth on a new frontier -- and that is the relatively new cryptocurrency market.
No doubt the cryptocurrency is a new technology and many of the people still require get educated on the crypto system. The real or I will use the traditional economic system is too old and too strong that almost all the money earned from the crypto becomes part of that old system. Cryptocurrency for all of its hypes is still a small boat in the middle of the big ocean. It can be growing by leaps and bounds but still compared to many countries GDP and big corporations' stock value we still have many rice (I am an Asian, you see) to eat to get there.
We should instead be happy that finally there is a great opportunity to build wealth on a new frontier -- and that is the relatively new cryptocurrency market.
The only thing that makes a difference is many people are accepting it because they see that people attached to the crypto system have handsome earning.
June 23, 2017, 12:31:56 PM
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?
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?
Two points,
Number one, until and unless holders sell coins, it won't add anything to economy. Their wealth will just be estimated and won't count towards economy because Bitcoin and other crypto aren't legalized yet.
Number two, when holders sell coins, it leads to shift of wealth from one nation to others. Suppose A from US bought Bitcoin for $500 and sold for $3000 to B from UK. So it would result in addition to US economy by $2500 and deduction in UK economy by $3000. Several people think cryptocurrencies are blowing up the economy which isn't true, it is just shift of money worth either inter country or intra country.
June 23, 2017, 11:03:12 AM
There is nothing to be alarmed because the total global population is now beyond seven billion and yet the cryptocurrency market is still so young and small. And the money made by many cryptocurrency millionaires would always go back into the real economy which can help to induce more growth stimulus.
Cryptocurrency for all of its hypes is still a small boat in the middle of the big ocean. It can be growing by leaps and bounds but still compared to many countries GDP and big corporations' stock value we still have many rice (I am an Asian, you see) to eat to get there.
We should instead be happy that finally there is a great opportunity to build wealth on a new frontier -- and that is the relatively new cryptocurrency market.
Cryptocurrency for all of its hypes is still a small boat in the middle of the big ocean. It can be growing by leaps and bounds but still compared to many countries GDP and big corporations' stock value we still have many rice (I am an Asian, you see) to eat to get there.
We should instead be happy that finally there is a great opportunity to build wealth on a new frontier -- and that is the relatively new cryptocurrency market.
June 23, 2017, 08:47:02 AM
yes, I can understand the argument.. naturally, the value is in the value given by purchasing crypto with fiat. in hindsight it seems pretty obvious. It just seemed like money coming from thin air, when so many new cryptos are coming around, but yes, I do see that there needs to remain a balance.
It's just that I see how I made a 1000% profit in my savings through crypto and I immediately become suspect. But yes, I see now. It's pretty logical actually
thank you all for clarifying it to me
in a sense, cryptos have only enabled a democratization of wealth in the sense that anyone could do it if they were being smart about it.
It's just that I see how I made a 1000% profit in my savings through crypto and I immediately become suspect. But yes, I see now. It's pretty logical actually
thank you all for clarifying it to me
in a sense, cryptos have only enabled a democratization of wealth in the sense that anyone could do it if they were being smart about it.
June 23, 2017, 08:41:33 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?
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?
When there are many people getting rich with cryptocurrencies there are also people who are losing profit and getting bankrupt. The balance is maintained and the fiat currency that goes into cryptocurrency will also goes to other person who sold their virtual currency. Money is not being reproduced but was only transferred.
June 23, 2017, 08:38:09 AM
There are only few people that knew bitcoin or crypto currencies, so there are not many rich people from crypto, if there are too many people getting rich from crypto it can caused chaos to the economic stability, that is the first concern from the economic expert when they heard bitcoin, but people still need crypto currencies because there are still so many people live in poverty, so actually the crypto now is helping the people for a better life and gave a better economic for people
June 23, 2017, 07:26:39 AM
There are not that many people who have become rich off Bitcoin. Many people were early investors, but instead of holding onto their coins, they sold them and that train kept on going so Bitcoin was spread out quite a lot. Because of this, there are not many people in the world right now who are rich because of Bitcoin. The ones that are rich, they don't really make much of an impact on the world's economy at all. Pretty much everyone who became rich off Bitcoin are just millionaires, they aren't even close to becoming billionaires. Millionaires aren't the ones who have an impact on the economy, only billionaires and above do.
June 23, 2017, 06:31:09 AM
two things to consider in my opinion about your question:
first is the fact that there aren't really that many who get rich doing what you read in the news. these are very rare cases of random people. the rest who get rich by investing in bitcoin or ... would have gotten rich any other way so no balance is being disturbed.
second is the question of what will they do with their money. again those random cases who got rich randomly, will most probably blow it off as easy as they gained it. and the other group who worked for getting rich will use it wisely and again no balance is disturbed.
first is the fact that there aren't really that many who get rich doing what you read in the news. these are very rare cases of random people. the rest who get rich by investing in bitcoin or ... would have gotten rich any other way so no balance is being disturbed.
second is the question of what will they do with their money. again those random cases who got rich randomly, will most probably blow it off as easy as they gained it. and the other group who worked for getting rich will use it wisely and again no balance is disturbed.
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