Will crypto lead to the next financial crisis? - page 5.

shogun47

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Quote from: Kong Hey Pakboy on July 21, 2021, 10:02:42 AM

Quote from: paxmao on July 21, 2021, 06:17:25 AM

Not really. Lets say that "bitcoin is in a bubble" - the amount of bitcoin in the economy compared to other magnitudes is insignificant. Just for the shake of comparison, and I do not consider Bitcoin like tulips, when the crash of the tulips bubble happened, the economy of the country itself did not suffer much. An unlikely massive crash of bitcoin as of now would not make a significant dent on the worlds economy - albeit it would in individual economies including mine.

It's not really a good thing to compare bitcoin to a bubble because bubbles work different and have a different effect, th Tulip Mania didn't affect the economy because rich people are the only ones that buy it and I don't think that not every Dutch bought it and there's the Housing Bubble of 2008, it did affect the economy. I don't think that bitcoin is going to cause a financial crisis because as @ paxmao said, it's not a lot and it represents only a small percentage of the market.

The Tulip mania didn't only affect the rich. One of the problems was that the poorer people started selling tulips of less value as well and since there were already those prime tulips trading at high prices, they also affected the prices of tulips that were usually cheap. At some point the whole thing crashed because they realized that none of the tulips was really worth a lot. It is similar to crypto in so far as a Bitcoin bull run also gives shit coins a boost. The difference is that when the shit coins crash Bitcoin will not crash.

jossiel

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Quote from: XUNing on July 27, 2021, 05:30:19 AM

Cryptocurrency will not cause a financial crisis. The proportion of people holding cryptocurrency in the world is very small, and the market value of cryptocurrency is not enough to pose a great threat to the financial system. The financial crisis is caused by the unlimited printing and distribution of money by institutions to cause inflation. Bitcoin is not controlled and restricted by the government, and the total amount is fixed, and it will not be issued.

Yeah, it's the opposite actually.

People from the traditional market and investments, they can be in the crypto market and manipulate it just as what we've been seeing with these popular people in the world of investing.

I guess we've already passed on the said crisis and that was when the pandemic started last year.

XUNing

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Cryptocurrency will not cause a financial crisis. The proportion of people holding cryptocurrency in the world is very small, and the market value of cryptocurrency is not enough to pose a great threat to the financial system. The financial crisis is caused by the unlimited printing and distribution of money by institutions to cause inflation. Bitcoin is not controlled and restricted by the government, and the total amount is fixed, and it will not be issued.

emmybd

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Bitcoin might be a plaything for many—a fun way to experiment with digital cash or perhaps to buy things online that you’d rather people didn’t know about. But others are seriously viewing it as a haven during a financial storm.
Our economies and financial systems are built around fiat money, and they rely on the central bank’s control of the currency (and the government’s ability to issue debt in that currency) to help manage the business cycle, fight unemployment, and deal with financial crises. An economy in which Bitcoin was the dominant currency would be a more volatile and harsher economy, in which the government would have limited tools to fight recessions and where financial panics, once started, would be hard to stop.

AndySt

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Quote from: leetcoiner on July 23, 2021, 01:11:25 PM

Quote from: brainactive on May 28, 2021, 03:48:49 AM

Looking at the past financial crises that happened, they all seem to have a few things in common, such as the mass adoption of a new financial product or technology (e.g. mortgage backed securities in 2008, dotcom boom in 2000). Given the extent to which institutions (and some influential figures) have been manipulating crypto recently, do you guys think this narrative is likely?

There is too little money in the cryptomarket and too little adoption mass for cryptocurrencies to trigger a financial crisis.
If you are talking about "crypto winter" then it happens regularly and this can be called a local financial crypto crisis, but not a global one.

But the money in cryptocurrencies is gradually becoming more and more Wink

Although, of course, to argue that the collapse of cryptocurrencies will serve as a kind of trigger for another financial crisis is a very big assumption that has little chance of being realized in real life. Rather, we can say that cryptocurrencies, on the contrary, have some stabilizing effect on the market, sterilizing the excess money supply that spills out thanks to the policy of quantitative easing before this and the current inclusion of the printing press by governments to support the economy and overcome the negative consequences of the pandemic, but like medicines, these measures have side effects.

Princejebs

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Quote from: brainactive on May 28, 2021, 03:48:49 AM

Looking at the past financial crises that happened, they all seem to have a few things in common, such as the mass adoption of a new financial product or technology (e.g. mortgage backed securities in 2008, dotcom boom in 2000). Given the extent to which institutions (and some influential figures) have been manipulating crypto recently, do you guys think this narrative is likely?

But this schemes didn't last long like bitcoin has did. Beside, many people have claimed that bitcoin and crypto will collapse but it has kept going stronger despite the manipulation by authorities to suppress it value.
The only bad side of bitcoin I have seen so far is Fud. People get scared easily when they hear news but I have these feelings in the future, investors and holders will no longer buy into those Fud and any from of fears created by the government. It makes it even more stronger because we are still above %50 with fibonacci retracement.

leetcoiner

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Quote from: brainactive on May 28, 2021, 03:48:49 AM

Looking at the past financial crises that happened, they all seem to have a few things in common, such as the mass adoption of a new financial product or technology (e.g. mortgage backed securities in 2008, dotcom boom in 2000). Given the extent to which institutions (and some influential figures) have been manipulating crypto recently, do you guys think this narrative is likely?

There is too little money in the cryptomarket and too little adoption mass for cryptocurrencies to trigger a financial crisis.
If you are talking about "crypto winter" then it happens regularly and this can be called a local financial crypto crisis, but not a global one.

Liamttw

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The government's additional printing of money led to inflation and ultimately to the financial crisis. Investing in Bitcoin can help people protect their funds from government manipulation and inflation. At present, the market value of cryptocurrency is very small, so it cannot affect the overall economy. It will not have a great impact on the financial system, nor will it cause a financial crisis.

perryxi2

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if you're talking about the way i think you're talking about a market crash Cryptocurrency crisis, why because if the financial economy is stable, people with high income, of course, have the need to invest in the virtual money market, and vice versa, do you think like me?.

conected

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Quote from: Ausgewielt on July 21, 2021, 12:32:07 AM

I think there is still possibility for bitcoin price manipulation as bitcoin is not yet spread evenly. But I don't think that the title of your post is right. In my opinion government always take full control on country economy. Government can make any regulations that may prevent financial crisis. Actually Bitcoin is just a part of factors that influence economy. For now, I don't see any bad global impact that may caused by bitcoin, actually I think bitcoin can help many new business emergence. I believe that if Bitcoin spread evenly then there is no institutions who can manipulate bitcoin price.

- Agreed, crypto and bitcoin is a small market among many investment markets, its growth can be fast and become the subject of attention of economists but its value is almost a reference and its influence on the global network is extremely low, even in a small scale, it is relatively difficult for this market. The financial crisis can only be caused by the incompetence of the government when they are too passive in supporting and renewing the economy, the most important thing to mention is the issue of corruption, instead of publicity, they often cover up their flaws and lose a large amount of money.

Kong Hey Pakboy

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Quote from: paxmao on July 21, 2021, 06:17:25 AM

Not really. Lets say that "bitcoin is in a bubble" - the amount of bitcoin in the economy compared to other magnitudes is insignificant. Just for the shake of comparison, and I do not consider Bitcoin like tulips, when the crash of the tulips bubble happened, the economy of the country itself did not suffer much. An unlikely massive crash of bitcoin as of now would not make a significant dent on the worlds economy - albeit it would in individual economies including mine.

It's not really a good thing to compare bitcoin to a bubble because bubbles work different and have a different effect, th Tulip Mania didn't affect the economy because rich people are the only ones that buy it and I don't think that not every Dutch bought it and there's the Housing Bubble of 2008, it did affect the economy. I don't think that bitcoin is going to cause a financial crisis because as @ paxmao said, it's not a lot and it represents only a small percentage of the market.

paxmao

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Not really. Lets say that "bitcoin is in a bubble" - the amount of bitcoin in the economy compared to other magnitudes is insignificant. Just for the shake of comparison, and I do not consider Bitcoin like tulips, when the crash of the tulips bubble happened, the economy of the country itself did not suffer much. An unlikely massive crash of bitcoin as of now would not make a significant dent on the worlds economy - albeit it would in individual economies including mine.

Lorence.xD

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How can it lead to the next financial crisis if it's not even widely adopted, the government of some countries even actively prohibit and discourage owning bitcoin and other cryptocurrency so I don't see it leading to a financial crisis, and if there's one, I think that we will probably see bitcoin and other cryptocurrency as the solution to that so quite the opposite I think.

Liamttw

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The financial crisis was not caused by cryptocurrency, but by the pandemic and over-printing more money to control the pandemic.
Cryptocurrency will not cause a financial crisis. Not everyone knows about cryptocurrency. It is small in scale and a small investment product, and it is not used on a large scale all over the world and will not have an impact on the economy and finance.

defi-Dany

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I believe that if Bitcoin spread evenly then there is no institutions who can manipulate bitcoin price.
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Bitcoin is evenly distributed, which is impossible. I don't know how many years it will take to wash away the whale's large amount of Bitcoin.

Ausgewielt

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I think there is still possibility for bitcoin price manipulation as bitcoin is not yet spread evenly. But I don't think that the title of your post is right. In my opinion government always take full control on country economy. Government can make any regulations that may prevent financial crisis. Actually Bitcoin is just a part of factors that influence economy. For now, I don't see any bad global impact that may caused by bitcoin, actually I think bitcoin can help many new business emergence. I believe that if Bitcoin spread evenly then there is no institutions who can manipulate bitcoin price.

ROSERTY

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Cryptocurrency will not cause a financial crisis. Most of the financial crises are caused by the excessive printing of fiat currency. Bitcoin is small in scale and a small investment product, and its total amount is limited. It will not be issued at will according to demand. It can effectively prevent inflation and will not affect the economy and finance.

TechHypes

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When you look back the last few decades and you look at all of the financial crises that happened, you know, they all have a couple of things in common. And one of them is the mass adoption of a new financial product or a new technology that’s not very well understood. Crypto

Caldear

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The price of crypto currency fluctuates and the price plummets may cause the market to collapse, but it will not cause a financial crisis.
Crypto currency is used more as an investment, and there is no widespread transaction in daily life, and banks will not use crypto currency, which has no great impact on the financial crisis.

teosanru

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Quote from: brainactive on May 28, 2021, 03:48:49 AM

Looking at the past financial crises that happened, they all seem to have a few things in common, such as the mass adoption of a new financial product or technology (e.g. mortgage backed securities in 2008, dotcom boom in 2000). Given the extent to which institutions (and some influential figures) have been manipulating crypto recently, do you guys think this narrative is likely?

Maybe Yes, Maybe No! Crypto is pretty different from stock markets actually. You see we are already 60% down from the all-time high, for some people, This is a big crash in itself also if you look at this in terms of the stock market it looks huge, and therefore a big crash might have already happened. And what happened after the 2000 and 2008 crash was just that the boom of things ended, we know that .com companies still enjoy the highest valuations, and mortgage-backed securities still exist. So crypto would go on too after this kind of crisis it's just that these shady currencies like Shiba Inu created as a joke would be no more existing in the market.

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