Will crypto lead to the next financial crisis? - page 6.

justdimin

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Quote from: brainactive on May 28, 2021, 02:48:49 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?

Crypto is a way out of the financial crisis not a way to get into the financial crisis which is why I doubt that it really will impact the world in a bad way. Sure we have downs, look at the prices now, they are all 50% or so down from what they were and not looking good, but at least whenever dollar gets devalued we are there to pick up the slack and go up. That is why I think it is quite important to realize bitcoin is savior and not a monster.

Fiat on the other hand? It is a constant down for it, due to inflation whatever you have right now means you will have less in the future. Technically speaking I am making 3x more than what I used to make in my national fiat amount, but I can't live as good as I used to, thank god I had a job during pandemic as well but it is seriously horrible that even after making 3x more I am still living worse each year, think about what that means for fiat.

Kiley33

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I don’t think it will lead to the next financial crisis. Although everyone knows about cryptocurrency now, most people still don’t know that cryptocurrency will not use cryptocurrency. Everyone's understanding of cryptocurrency is just investment, and it has not been the first payment place for daily consumption.

Argoo

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Quote from: brainactive on May 28, 2021, 02:48:49 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?

It is unlikely that this conclusion is true. The indicated facts of the appearance on the financial market of any new financial assets during the period of financial crises is most likely a common coincidence. I do not think that the emergence and current development of cryptocurrency can provoke a new global economic crisis. In fact, cryptocurrency was created, among other things, after the global economic crisis of 2008 as a financial means to combat such crises. Yes, and a lot of time has already passed to influence the world financial system in this way, and the mechanism of such an impact is completely incomprehensible.

jinneas

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Cryptocurrency will not cause a financial crisis. The financial crisis refers to the crisis that affects the entire financial system and the entire economy. It is not caused by cryptocurrency.
Cryptocurrency is outside of traditional finance. Even if the price fluctuates, the network security of cryptocurrency is still guaranteed. It will not have a great impact on the financial system and will not cause a financial crisis.

kidbounty

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HELENA

no, crypto will not trigger the next financial crisis. decentralization prevents all of that from happening. The financial crisis that occurred in the past is the fault of the current banking system. centralized system that makes it happen. so the chances are very low if you think cryptocurrencies can cause a financial crisis.re.

Kakmakr

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Quote from: brainactive on May 28, 2021, 02:48:49 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?

The past economic crisis was due to the wrongful and unethical actions of our Banking system and not something new that was introduced. The Fractional reserve banking practices that these Banks implemented was reckless and it caused a near financial collapse of the global economy. Angry

Bitcoin was developed as an alternative by Satoshi Nakamoto to reduce the control that these centralized Banks had over the global economy and people's wealth. The definition of Crypto currencies as a "Commodity" by the different governments, was an attempt to protect Fiat currencies and Banks and this is directly impacting the difference that Crypto currencies could have made on solving the problems created by the governments and the Banks. Angry

valentine wheeler

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If the cryptocurrency collapses, it may cause a butterfly effect in the global economy, but this probability is relatively small.

The crypto market, especially Bitcoin, has become an unstoppable trend, and it cannot be ignored that the substance of Bitcoin is still very small compared to the world’s top 500 companies, not to mention the US stock and bond markets.

The collapse of the currency may cause serious financial problems for many families, but it will not affect the turmoil of the world economy.

awik p

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Pepemo.vip

nothing proves the truth of that narrative. but one lesson that we can take when a crisis occurs, of course there will be a savior god who will be the center of attention of many people. just like yesterday's bitcoin, where many people forgot the pandemic and made it a new source of income for them

Sternbinder

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It is too early to talk about cryptocurrency this way.
I support the idea that cryptos are really promising financial instrument which will be in high demand in the nearest future and will have the opportunity to influence the global markets really dramatically. However, right now its capitalization is too small to make any tangible effect on the economy. You mentioned last economic crises but they were connected to the old instruments like stocks and modified old instruments like CDOs. Cryptocurrencies need to take the time in order to gain popularity and trust from the officials. Nowadays, China is already uses digital yuan which is the first step for cryptos to establish on the big global markets. I believe that when the USA admits using cryptos, their capitalization will skyrocket and after it the bubbles are likely to appear. However, it is not the matter of months, it will take several years for cryptocurrencies to become an integral part of global economy.

jaminunit

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No, Central banks will lead us to the next financial crisis.

They will blame covid or bitcoin like they blamed poor homeowners for the last one.

But f you look at the reverse Repo market you will see how close the USA is to going full negative interest rates and full inflation. The rest of the world will catch that cold

Roy Asher

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It will not cause a financial crisis. After all, the size of Bitcoin is very small, and it is a small investment product, which will not affect the economy and finance, because Bitcoin is insignificant for the economy and finance. At present, there are also some companies investing in Bitcoin. When Bitcoin plummets, there will be some losses for the company, but it will not have any major impact on the economy.

noorammak

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Quote from: Kittygalore on May 30, 2021, 11:07:13 PM

Quote from: noorammak on May 30, 2021, 07:38:04 AM

The cryptocurrency market capitalization is very small compared to the rest of the economy so it will not be able to affect the overall economy. Throughout the world's economic history, recessions have come from holes. Cryptocurrencies look very bright, transparent so I think crypto is the solution to the economy instead of seeing it as a risk.

I don't think transparent is the right word to associate with crypto since it is in the namesake which is cryptography. It might not affect but the waves that it will make in the long-term is going to be sending tremors to financial institutions around the world, as people are getting their freedom with the help of cryptocurrency, they will start to get more independent and bankers don't like independence.

Except for the anonymous coins, the cryptocurrencies that we frequently use can view the transactions publicly, in addition, the source code of the projects is open so I call it transparent.
Banks don't like cryptocurrencies as governments do so they already have crypto-specific regulations in place in some countries.

Kittygalore

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Quote from: noorammak on May 30, 2021, 07:38:04 AM

The cryptocurrency market capitalization is very small compared to the rest of the economy so it will not be able to affect the overall economy. Throughout the world's economic history, recessions have come from holes. Cryptocurrencies look very bright, transparent so I think crypto is the solution to the economy instead of seeing it as a risk.

I don't think transparent is the right word to associate with crypto since it is in the namesake which is cryptography. It might not affect but the waves that it will make in the long-term is going to be sending tremors to financial institutions around the world, as people are getting their freedom with the help of cryptocurrency, they will start to get more independent and bankers don't like independence.

Tristan Bieber

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Block currency may replace the current legal currency, but it will not be Bitcoin.

Even if it is assumed that a Bitcoin is the only currency, other aspects are exactly the same as the current world. Theoretically, its economic impact will be similar to the large fluctuations in the years when the gold standard was implemented.

However, the fact is that countries will quickly fork Bitcoin, and then implement currency supply policies that are compatible with their own economic conditions. Therefore, there will be no significant impact.

Because of the existence of the fork, the total amount of Bitcoin is arbitrarily unlimited. Once there is a shortage of supply and the price soars, there will be groups immediately to fork and issue them. There is no deflation, only severe inflation.

AndySt

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Quote from: BrewMaster on May 30, 2021, 10:54:10 AM

the financial crisis and the economy tanking like in 2008 didn't happen because some market crashed. it happened and always happens because someone is fucking up the economy like the corrupt banking system that has deep roots in all aspects of economy and our day to day finances.
crypto market on the other hand is a tiny thing that people can go to and trade a little bit which won't change anything in the world if it were to shut down tomorrow.

Financial crises and overproduction crises are a given and a feature of the capitalist system of the economy and to overcome this, something more is needed than the absence of corruption in the banking system and in public administration in the economy. We also need perfect and immaculate angels who participate in all this and make all their decisions for the universal and all-encompassing good Wink

Well, I hope you understand me and take off your rose-colored glasses, which distort the harsh reality. The crisis of 2008, like other similar crises, already had a lot of causes and prerequisites, and thanks to what random event it would all happen was only a matter of time and place.

jaberwock

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Quote from: brainactive on May 28, 2021, 02:48:49 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?

It certainly will have a part in it and that's for sure. Why is there financial crisis? Because everyone loses money all together, when a big enough population loses money all together and lose tens of billions of dollars together then that's called a financial crisis. When the banks gone down in 2008 that was a bad situation and I understand why people assumed it would be similar in crypto as well, everyone was having mortgages and loans and stock investments and so forth in 2008 and when things went down and market crashed people lost tens of billions of dollars combined.

It means bitcoin is big enough already but it is not wide enough, there is ton of money involved but not as many people as one whole nations stock owner count, in usa there are more stock owners than crypto owners I assume (no idea if that's true) eventually I am sure when bitcoin reaches over 10 trillion dollars we will see crypto crash causing financial crisis as well if you ask me.

Poker Player

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Quote from: brainactive on May 28, 2021, 02:48:49 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?

You are posing an interesting question, OP. I've reported your post history, which I think is decent, to see if some merit source gives you at least one merit (have a look at the thread, you can do the same in the future).

Regarding your question, I am not clear, but sometimes I doubt it. I don't like Saylor's emphasis on borrowing, as I wrote in another post.

I think this can lead to too much unhealthy debt in the crytpo space and we know how debt bubbles end.

Quote from: stompix on May 30, 2021, 11:08:56 AM

At current levels?

You are right, not at current levels but let's think of BTC eating most of gold market cap, and then keeping growing. I think we would be entering a dangerous zone then if too much debt was used.

jossiel

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It is a fact that we see manipulation in the market but that has been seen a years ago and it will remain for the next years to come. The correction that we're getting is also essential for the market to be balanced.

I don't see the next financial crisis happening because what just happened last year was already enough for a financial reset worldwide due to the pandemic. If you've seen those countries printed new supply of cash in their economy, that's already the sign of it but most of them are recovering.

stompix

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Blackjack.fun

At current levels?
Crypto could be gone by tomorrow and the world economy will not even cough!

We just had 50% of the so-called market cap erased in a month, did it matter to the rest of the economy? Not even a wink, the stock market is still going up, commerce is at fulls team, everyone is buying stuff and looking for even more stuff to buy as manufactures are not meeting demand. What would a 90% crash from the price now do that the 50% has not, especially since there will be even less value at stake here?

No matter how many try to picture the crypto world as something that entire nations and economies depend upon in reality is just a drop in the ocean, bitcoin still has a tremendous road ahead before it becomes something that can rock economies and force policy makers to take to account. Like it or now we're still in the era where one tweet can erase hundred of billions, and this not coming from a government but from just one person.

Quote from: uneng on May 28, 2021, 11:26:02 AM

I think we are living a financial crisis already due to governments printing money infinitely to maintain a system that doesn't work in a sustainable way.

Living a facial crisis? Where? I'm not saying we're not going to end up in one sometimes down the road, but where do you see that financial crisis right now?
And I'm not talking about Venezuela and Iran!

BrewMaster

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There is trouble abrewing

the financial crisis and the economy tanking like in 2008 didn't happen because some market crashed. it happened and always happens because someone is fucking up the economy like the corrupt banking system that has deep roots in all aspects of economy and our day to day finances.

crypto market on the other hand is a tiny thing that people can go to and trade a little bit which won't change anything in the world if it were to shut down tomorrow.

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