Bitcoin Forum

we've heard a bunch of times about fiat money and escalating problems. any reason for bitcoin to decline rapidly and all the online wallets closing down how will everyone fear the loss of bitcoins. It can happen because its the problem with real money its causing bitcoin to get blocked halfway.

This wont happen, lets be realistic bitcoin has a market capitalization of milions and no one can make it go down soo deeply, making wallets companies take their service and our coins. The financial problems around several countries is making people choose to risk to loose the money to the country or to invest and hide it at bitcoin.

This is not going to happen at all. Bitcoin will not going to experience economic crisis. With large amount of money being invested investors and all elites behind bitcoins will find solutions so as not to lose billions of dollars. The only reason that things will come to this if a major disaster will hit earth like a meteor strike so devastating that all telecommunications and electricity goes down.

I think it wont happen as many people already supporting it. With huge capitalization and reaching almost all nations its hard to  stop it. As long as tehres electricity,telecoms and network of computers it will exist. Even tech companies and several IT giant are riding and incorporating this technology on their services.

If a global economic crisis will take place, Bitcoin will be affected too, it won't escape this easy. The only way BTC can fall down to 0$ is by shutting down the energy worldwide, but that makes all the currencies worthless, and Gold and Silver would become the only currencies worth something in this world. Small chances of this happening soon, higher chances of this happening in the next ~10 years.

I think this is the reason why Bitcoin is created,  money is produced instantly whenever the government wanted.  Thus making it inflationary and resulting to  economic crisis.  Since Bitcoin has finite number, and the coin produced is designed as how the gold is mine, there is a slim chance that bitcoin will have a fast decline.

I agree, an economic crisis is a global phenomenon which affects all people (even the ones not using computers or even linked to the market in any sort (like the revolts from poor countries over the increasing price of food)).

Bitcoin may have a finite number, but it's easy to bypass. If banks and companies start using bitcoin massively similar mechanisms than the ones seen today may be created which could lead to an increase of money supply via indirect money creation (set by liquidity ratios for instance).

I agree that Bitcoin will be 'affected,' but most likely in a positive way.  Since all major circulating currencies are issued by states, in an economic crisis (say, collapse of debt values or stock markets leading to loss of savings and jobs,) the states will most likely try to 'solve' the problem by creating more currency.  In fact, this seems to be the only trick the authorities know.  In this inflationary scenario, the limited quantity of Bitcoin will serve as an inflation hedge, and savers will likely go into Bitcoin (and other limited-quantity assets.)

Quite not clear what you are refering to saying blocked halfway ???
If you are talking about some countries considering bitcoin illegal to exchange than there are not many such type of country. In most of the countries bitcoin is being traded and being used even in local merchant level. So i am not seeing anything like bitcoin lossing total movementum due to any such banning etc.

Talking about price it may go down and go up which is normal and depends upon lots of fact, there are not such term like economic crisis for bitcoin.

In that scenario, existing Bitcoin holders will get rich.

Also, if banks, corporations, and governments build leveraged assets on top of Bitcoin (say, by issuing Bitcoin IOUs backed by the 'full faith and credit' of the government,) even though the system is still subject to manipulation by the elites at the core, just because money (Bitcoin) is now a non-state-issued, limited-quantity asset, the pace of asset inflation and all the associated problems will grow slower than under fiat money, over the long term.

This would be similar to the gold standard, when financial busts tended to cause immediate pain as central banks couldn't rescue the system by creating so much money, but, over the long term, financial inflation (with all its perverse economic and social incentives) was also slower than during the fiat era.

When people lose confidence in the fiats, they might use the bitcoin or the Ethereum as a safe haven.

I would think that just the opposite of what you're saying would happen. People would be attracted to Bitcoin because of the economic crisis, and Bitcoin could be an alternative to gold and silver for the more tech savvy people out there.

This is already happening on a small scale.

Economic crisis is just a catalyst to attract people to bitcoin. But gradually, people will start using the bitcoin.

Bitcoin could definitely fail and we should be prepared for that, but I think it is unlikely at least for a few years. It could catch on big and we could be very wealthy, there's just no way to know. We are dealing with a high risk investment right now.

nah i do't see that, no one who bought at those level will sell it ever, the only possibility would be if bitcoin face a serious bug/exploit, that was not discovere in the code, and lead to a panic dump

this possibility is very remote, i'm not betting on it...

With the current rate of bitcoins is going I don't see any real crisis will happen, if you will see that price are falling back hard for me that is just a manipulated event and I believe price will be back to normal and will consistently increase.

If you are afraid of online wallets just use PC or mobile wallets.Not a big deal...

I don`t know about any "escalating problems" with fiat money.What are you talking about?

An economical crysis should have both positive and negative impact  over bitcoin.

The question is which impact will influence btc more.

In the future, you can use the bitcoin wallet integegraged into your smart phone, like the fiat. So it is easy to use.

Nothing is assured, so there are more possibilities for anything to happen. In my view, even during the days of hard economic collapse of the world economy bitcoin was in the rise. For this reason I feel bitcoin won't fail even if it meets several crisis.

Anything can happen. But i believe that Bitcoin getting to economic crisis is very less likely to happen. The fiat money system faces economic crisis due to the inflation of the dollar. The paper money is not backed by a resourse based economy that is is the reason for economic crisis. but Bitcoins are in limited value and less chance for crisis. !!!!

Even if a crisis will come bitcoin has grown very strong the last couple of years. I got full faith now with the market cap is 10 billion dollars.

I don`t think bitcoin is getting in any crisis, especially not economic crisis. Fiat is different thing, there is someone who print money like crazy ( federal institution ). Then that money goes on credit to banks, and then banks give that money on credit to people or companies, or to governments. Everyone who wish to learn about fiat money can do it on internet, there is like million information`s about it.
Bitcoin is different, there will be 21 million coins, and that is it. When miner solve block he get a reward, now that reward is 12.5 after halving. So that is it, there is no institution behind it.

When there is a general big economy crisis, people will lose confidence in the fiat, they will adopt bitcoin.

Although theoretically it’s possible but practically it’s not possible because bitcoins has passed existence struggling phase and now bitcoin is facing new challenges which are not related with basic issues but on a macro levels we should work for the solution such as prevention from misuse. I don’t think bitcoin will disappear overnight (not because I have investments in it) but there are wide aspects like vested interests.  I conclude that bitcoin is not going in economic crisis but it has to face some challenges regarding worldwide acceptability by various factors including governments.

i am agree because from time to time, blockchain technology will be open the eyes for many people that there is another solution for their economic crisis or something like that. and i think it will be come true when the government know what kind of blockchain technology and this technology can be integrate with their system and make it completely.

beside that, maybe bitcoin have economic crisis and get down its because people panic and sell their bitcoin and the other thing is from the news that maybe release from the other source and people get ready for the impact and sold their bitcoin.

Thatw is because the Bitcoin is not so closely tied to the "classic" world economy and thus the crisis doesn't affect it. But will this situation also stay in the future or Bitcoin will become equal part of world financial system and thus become equaly vulnerable to economic influences and all bad stuff that comes along?

As long as Bitcoin remains a decentralized currency it will not be vulnerable to economic factors. Fiat money is unstable and subject to devaluation because it is political money that is used by governments as a tool for (economic) policymaking. Governments directly or indirectly devalue fiat currencies to finance gifts for their voters or the police / the military to stay in power. That is impossible with a decentralized Bitcoin.

In that regard, Bitcoin behaves a lot like gold: It is not immune to fluctuations in valuation. However in the long run it will preserve its purchasing power. Compared to fiat it is almost sure to gain in value, since inflation makes fiat money worthless sooner or later.

ya.ya.yo!

The only scenario I see of how bitcoin could decline is if something incredibly and obviously without a doubt better than bitcoin is created which is also able to take root and gradually overtake bitcoin as the cryptocurrency standard.

To me, bitcoin is becoming something akin to the AK-47. Reliable, efficient, dependable even in the worst crappiest conditions and is standing the test of time... so far... knock on wood.

The only crisis that I have witness now is when there is a hacking with the bitfinex and I can really tell that it affected the economy of bitcoin as evidenced by the big price fall back, but we are too lucky now as the price is rising back again and it is going to the right direction to be back to normal or even surpass the last high price before the big fall back.

The Bitfinex hack delayed the bitcoin price rise to $1000 by at least three months. I thought the price could reach $1000 in the middle of next year.

if the crisis happens then bitcoin will going to be booming, people will be afraid to lose their money so they will put the fiat into bitcoins and the price will grow

In economic crises (of the Great Depression scale) money (especially cash) usually gains in value since people start liquidating other assets which become cheaper or just worthless. Since Bitcoin can be considered as both a currency and a financial asset, the overall effect is hard to predict. On the one hand, some people will have to sell their Bitcoin stashes to get the money with which they can buy food and pay the bills (for example, if they start losing jobs due to a crushing economic crisis). On the other hand, some other people, which are more wealthy and better off overall, may decide to rebalance their portfolios in favor of Bitcoin...

Since it is almost a given that governments will start printing an endless amount of money in an effort to arrest (or at least to alleviate) the consequences of the crisis

Bitcoin is what it will always be until something newer and better actually replaces it, its always goin g up and down due to a number of circumstances and currently there is no reason to believe its in any kind of crisis.

Guys recently it was proven that if bitcoin was ever adopted by the masses as a major internationally accepted currency it would break bit coin, the transaction speed would be so slow, it would no longer be the most efficient and it would stop being used, this will happen one day and the question you should all be asking yourselves is which coin will replace it.

bitcoin is not going to suffer for sure, the economic crisis only might happen for fiat

The price had been going down gradually even prior to the Bitfinex hack. Now we have around 120,000 bitcoins pulled out of trading but the price rose only to ~$600. The amount stolen is quite big in proportion to the amount of bitcoins actively traded right now to substantially affect the trading volumes...

So, if the stolen bitcoins don't enter the market again in the nearest future, the hack should in fact prop up the price to a degree

We don't know what will be the price of bitcoin in few months but 1k value for now its hard to say that the price of bitcoin will reach in this level.
The only crisis we are experience right now is from bitfinex that result for the price to go down but the price of bitcoin right now is good and still kicking looks like the price already hit 600 value..

Even if all major transaction sites were hacked and the best exchanges shut down, new ones would pop up instantly because people would clammier to be considered the most trusted sources in bitcoin, the only thing that will stop Bitcoin is when mass adoption eventually breaks it because the transaction speed becomes too slow, this is already a proven fact guys. until that happens it will be considered the standard in digital currency!

The mass adoption of the scale you imply won't happen overnight. I guess there will be enough time to make the required adjustments to keep up with the growth in Bitcoin usage...

If it ever happens, of course

that's the thing as long as it doesn't happen, the coin can go up and down in value over and over and miners can keep pulling money out of their machines, BTC is not in any trouble at all its moving very status quo, while the people who make money off it are making it. Its kind of like beanie babies if beanie babies took forever for the scam to play it self out and if millions of people aroudn the world started accepting beanie babies as payment and opened up exchange sites for them. Even one of the largest Bitcoin trading sites to have ever existed (granted it was a disaster in the end) was MTGOX or (Magic The Gathering Online Exchange)

listen it was never a sound long term investment in the first place but its proven that through this theory of regular commerce the tulip trade can exist in an online world very successfully. It might not be BTC per say but this will always exist now and currently bitcoin is the clear front runner for the immediate future. essentially if the price drops buy and you will likely come out ok if you hang on long enough and this will happen probably a bunch more times until the one time it finally never comes back up again, which who knows how many pumps will occur between now and that time... IF that time ever even comes

I think the problem of nowadays is not in bitcoin. The problem is in security of different sites who suggest users online wallets and exchanger services. But bitcoin surely can affect on economic crisis. Bitcoin even can provoke it.

even if every exchange site and wallet that currently exists had a security breach over night new ones would instantly pop up to become known as the new most secure source of btc trading, there is no economic crisis bitcoin goes up and down in value, its doing what it does.

New exchanges might pop up, but that doesn't mean that anyone is going to be using them. There has to be some trust involved and chances are the exchanges are going to need some existing market share, and thus it means that the existing exchanges get more business and the new ones just kind of fade into obscurity at some point. They don't really mean anything and no-one really trades on them.

Not true, mtgox, cryptsy, vircurex were all trusted sites from day 1 and then suddenly fucked everyone over. Yes it did affect the price but it didn't hurt alt coins or bitcoins on the whole because old exchanges that had been around for a while became the new old trusted ones. Face it we still live in a world where none of the exchanges are entirely "SAFE" and everyone is still trading and keeping the economy of digital currencies alive successfully. Its a Miners dream because no matter what happens the will to make this work is stronger than the damage whatever fuckup causes and people who got into mining early and have the best equipment get to just keep mining and creating money from nothing. the only thing that will kill BTC is when the adoption level eventually becomes high enough that the speed of a transaction becomes too slow to compete with other services that already exist. At that point another coin will take over right where it left off. BTC and Digital Coins are here to stay!

Why bother for new exchanges, let us concentrate on the old an trusted exchanges, as trader that should be our main concern and priority now, even with what happen with some major exchange site got hacked, we still need to continue trading and make money.

I always think about this. Some people say if the bitcoin price goes down to 1$ then I will buy as many as I can afford, some people say if the price drops down to 1$ after all of this then it means there must be something wrong and definetly should be stayed away.

I realized I am in the middle of it. I will not sell everything I own and buy bitcoin if it drop down to 1$ but I will probably buy at least 100 of it. I think bitcoin won't decline that much, the price is what people say how much it is. Instead of fiat where goverments and finance sector decides how much 1$ is worth.

I have bought a few bitcoin in 2013 and 2015. I have hold most of them since then. I just used some in the mean time.

That is very good action. I also bought some this time last year. The price has risen 100%, but I will keep them for longer.

It will come down to what method the authorities decide to use to 'solve' the problem.  In the periphery of the world, e.g. Greece recently, Asia in the 90s, and Latin America pretty much all the time, the global elites tend to force pure austerity onto the population.  During the Great Depression in the US (the top of the world system,) a combination of deflation, stimulus, and devaluation against gold was used.  During the 2008 crisis, the tools were almost exclusively stimulus and (de facto) devaluation against gold.  The bottom line is that people are kept in more comfort nearer the top of the system, since the elites can't afford to generate too much anger among democratic populations.

The big deflationary effect on financial assets tends to be limited to real-economy assets, e.g. equities, real estate, industrial commodities, etc. because of the expected lack of economic demand.  Money-class assets like cash and 'safe' government bonds that are issued by the state may be torn between the two forces of appreciation (by hoarding -- saving money instead of consuming/investing) and devaluation (by inflationary government stimulus.)

Money-class assets that are not issued by the state will be sitting pretty -- I think saver demand will outpace liquidation to buy food, etc., since there will still be a lot of financial assets of all types out there that people want to convert into these assets (remember what started the whole crisis is an overflowing quantity of all types of financial assets, typically concentrated among a minority of rich people.)

you can never give an answer like this to a general question.
the correct answer is "it depends" and in fact we are all acting that way too, but I don't know why people say I would buy or sell if blah blah happens!
sometimes bitcoin goes down because there is a panic going on like the recent hack, this can only cause a little dip. but your scenario needs a gigantic dip which can only mean something gigantically bad should happen to bitcoin like a flaw in which case nobody will ever buy bitcoin again.

it also works the other way too. if there is a slow rise like the normal past year, then there is no reason to sell unless you need the money. but if there is a bubble like the $780 then the only wise thing is to sell and buy back after the drop.

I certainly agree about Greece (we should not forget that it doesn't have its own currency), I don't know much about what happened in Asia in the 90s, but in Russia the authorities being in the state of technical default on their international obligations had devalued the national currency a few times (3 to 4 times, to be precise) in a matter of days in August 1998, approximately at the same time when the Asian tigers had been quickly falling (Indonesia, South Korea, Thailand, etc). Surely not something that you would call austerity. So it seems to depend upon how much the global elites can force their will onto a given government...

On the other hand, Greece seems to be a textbook example of such economic "enforcement"