Topic: Will the next economic collapse trigger massive crypto adoption? - page 5. (Read 787 times)

I don't think people at large have adopted crypto as an equivalent alternative to money till now. Even today we measure value of crypto in fiat such as dollar. So with no standards for crypto in our mind, how will we implement them in market independently?
Let me explain in details. Currently we are able to integrate crypto as a mean of payment because it is possible to measure them in terms of dollars. For say, a site selling web hosting for $15 a month accepting payment in crypto so it charges $15 equivalent crypto from customers. Now erase dollar from scenario. A site selling hosting directly in crypto, now what price should it charge? 0.01 BTC? 0.001 BTC? Unlike fiat, crypto aren't inflationary because their supply is limited. This will cause further problems, the crypto-only economy will fall to stand-still. It won't be possible to increase government spending, it won't be possible to increase salaries of employees, etc. because supply is limited! So concept of crypto is not the full-proof alternative to current currency system.

There might be some gold for investors, but there is not enough to adopt the gold-backed money system. And cryptocurrency seems the most obvious and promising alternative. The price can surely go down at first, but it can recover and even increase soon afterwards if the global society finally gets sick of the mistakes and flaws of centralised systems with authorities.

Another crisis will come, but i don't think it will collapse. Inflating fiat is something that has been done for like a century, and some people even think that should be done. The only reason for central banks is the fractional reserve system. Should the world stop with that (bad) practice, and switch to full reserve banking, as proposed by Austrian economics, things would move away from the constant cycles of bubble and crash to one of slower but safer true saving based economy.

This is the same as the people saving (holding) their bitcoins, they are slowly keeping 100% of their money and slowly accumulating for the time they need to use it, as opposed to getting in debt to obtain more, which is the root of the current trend economic problem worldwide.

Austrian economics is the definite answer to stop the recurrent cycles (even if they don't particularly like crypto and want actual gold or similar to be used instead).

A "final" collapse isn't likely to come. While the world keeps with Chicago economics, the cycles will never end, and many people will be hurt. Housing crisis wasn't the first, nor the last. Problem is directly tied to fractional reserve banking...

A world with 100% fractional reserve means the people get to chose when or if they want to lend their money, which (naturally) becomes unavailable during the period of lending. Just like Bitcoin. 3rd of Jan (withdrawal day) actually verifies this for Bitcoin. I wish this was done worldwide to the banks, but of course if only 10% of the world population where to withdraw their money, the banks worldwide would collapse. This is a risk that could trigger something resembling "a final collapse", but i don't see humanity doing it quite yet.

I explained elsewhere that if people starts slowly withdrawing their money, but not beyond the worldwide reserve, it would give traditional banks time to shrink without provoking a worldwide economic catastrophe. One sure way to do this is to convert it to bitcoin, or buy metals or anything can can be under your direct control and supervision.

Land, housing, metals and now also crypto, I think that's what people will buy up as the central banks keep printing more and more money. The price of crypto's as bitcoins will the next many years still be highly volatile, so it will still be a risky investment. But a bitcoin investment that will be good to have if you already have a large portfolio.
People will less money, who can't afford to by into all the main inflations safe asses, will mostly choose bitcoins, as that's something everyone can buy, even if the just have a low salary.

There is that possibility because a collapse of the economic will send a clear message of failure of fiat in the society. This can lead to massive adoption of crypto because it is already standing as alternative.

One major issue that affects fiat is economic forces like inflation but bitcoin is usually not harmed by inflation.

Cryptocurrencies were always been considered as a risky asset for investments. And they definitely deserve this title.
What kind of things should happen to make all our fiat less safe than currently unsafe assets? Just name some criseses where people gave up everything and started buying something, that earlier was considered as shit?

Soon the crisis will happen, or it already happens, and we don't know aware about that. Fiat will transform into new forms and it could integrate with blockchain technology to solve the problem in the financial section. Besides that, people already have a new investment which could give them a new opportunity to make a big profit in the future. So the leader of the country should think about that, and if they are really concerned with their people, then they will try to figure out about the blockchain technology and bitcoin plus the other coin.

During financial crisis people look for a safe place to store their assets and bitcoin is probably the best thing for them right now. Take for example the case of Venezuela which now has over a million percent inflation rate and their economy just collapsed. Now people from there are using different cryptocurrencies just to buy food. Their government has even tried to create their own cryptocurrency but they failed.

Massive crypto adoption during the next economic collapse is for me very possible as we can see people, banks and countries nowadays are finding ways on how they would survive the next crisis some choose gold to back their assets and some choose Bitcoin as their back up. We don't want to be affected by crisis and the best way to prevent such collapse is to adopt cryptocurrency for our safety.

If you can't pay your mortgage why would you throw what little you have left at magic internet money?

If an economic schism happened 10 years down the line then it would start to possibly look feasible. If it happened today most would run screaming.

Bitcoin's rise has had the luxury of aligning with a near unbroken bull run in the rest of the world. It's still too early for it not to be a toy and a bet to most. And no one hangs on to toys and bets if times are hard.

The adoption of bitcoin is hinged on the use of digital currency. I think that if we still have fiat on use, it will still be influncing the adoption of fiat and the same way in the other scene.

Honestly, most people are running away from crypto. Majority are not familiar with decentralization. Maybe we will see it change if it proves itself. But, for now majority are not running from the crisis, but from btc.

Adoption? Sure. Price increase? Not decided yet. Just because bitcoin gets more adopted in the near future doesn't mean the price will go up as well, the more people get into bitcoin the more volume there will be and the more volume there is the more whales have a chance to sell their bitcoins without breaking the market but at the same time stopping it from going high.

That is why I think in the end we will go up but not until we get all these bitcoin rich people out of the way first, all the Craigs and Jihan Wus and so forth that have a ton of bitcoin needs to be stopped and cash out in order for all of us to actually see a decent increase, anytime the price hits to a level of amazing value they come out and do something horrible and kill all the price increases.

yes it also possible right now because the collapse with the current economy will made the people to think about the future so it may be a huge changes in their life they will definitely adopt the cryptocurrency as a part of their life.

There is a point where I think, the people will not be able to use bitcoin or cryptocurrencies as safe-haven for their investments. It is because the government won't allow people to use their digital assets and won't accept cryptocurrencies as assets as well. What I mean is, once the inflation or global crisis is there and since the people moved their investments in cryptocurrency, the government has their power to kill cryptocurrency and don't accept it as assets. It will turn out that cryptocurrency is priceless nonsense.

First, we have to ask, why do financial crises come?

Do they come when investors lose faith in some asset (e.g. stocks in 1929, bank deposits in 1931, and mortgage backed securities in 2007-8?)  Not really, because loss of faith happens all the time, and the elites are usually able to prop up important assets somehow.  What was special about 1929, 1931, and 2008 was that the assets were so highly and deceptively inflated, and the loss of faith so widespread at that point, that the elites decided to abandon important assets and only protect the core assets (e.g. money market funds and the dollar.)

The Western elites have a lot of power, but can't fight the entire market. And due to the incentives built into the state-bank money system, the elites will profit from destabilizing their own system, until they're fighting the entire market, at some point.  So financial crises always comes, eventually.  (This is different from the Chinese empire around 1000AD, where the elites were able to prop up their paper money by executing anyone who transacted with anything else.  Chinese power was centralized while today's Western power is fractured.  And China went to physical silver eventually, anyway.)

Traditionally, gold and silver went up pretty soon after a financial crisis, if not immediately.  This was really a devaluation of state money against 'hard' money as part of the managed retreat that the elites use to deal with a very bad situation from their point of view.  This has been how they kept their core power, i.e. their ability to issue the global reserve currency (the dollar, today.)  How they kept the public's faith in their currency was that, objectively, their currency became more stable after the devaluation.

Bitcoin and cryptos are a new form of gold and silver, and will go up after a crisis.  But don't expect crypots, gold, or silver to replace state money.  The whole point of devaluing against these 'hard' monies is to rescue state money.

I've read something similar about this.

When a financial crisis suddenly comes where will they go to save the value of their fiat.
When that happens something gets stronger. It was gold that was soaring.

Now, there will be a division that will happen.
The trust rating of gold is still high and there is no doubt about that. But if you give people another option then they might really go for that since they just dont want history to happen again.
Something new shoudl be used.
Bitcoin is just here ready for that. They dont need any paper works or any documentation to buy it.

When people lose faith in governments and people they will switch to software and algorithms. Bitcoin cannot be controlled by incompetent governments, and will therefore be a safehaven (as will monero) 😉

Bitcoin is parr of the economy whether the government recognized it or not because bitcoin operate within the world economy in generality, if there is any economic crisis I believe it will also affect bitcoin because if the economy is down as a system it will rob on bitcoin that is how the system theory work's.

during a financial crisis people always look for more security specially because they are scared by that time due to the events that led to that crisis itself which was mostly due to their bad investments like what happened in 2008 where banks fucked up the world.

cryptocurrencies, mainly altcoins are considered the super duper ultra risky investments in the whole world. which means people will stay away from them and we can easily see a very large scale altcoin dump if a crisis like that happens.

i would separate bitcoin from the herd though because it IS different and unlike most altcoins it is decentralized. so for example if 2008 repeated and banks were going down, they will pull out of a lot of these coins that they helped create like Ripple and Ethereum so you can be sure of their demise.
and at the same time it means a stronger bitcoin due to all the altcoin dump, the people exiting their corrupted financial systems to a clean decentralized system that has never seen any traces of corruption by banks,...