Bitcoin Forum

That was the headline I saw on the internet earlier today. What kind of impact on bitcoin will it have when it happens?

The first effect of the central bank debt money bubble bursting will crashes in the bond and stock markets. What follows will likely be inflation (eventually hyperinflation) and an increasingly desperate search for so called "safe haven" investments.

The assets that will be most sought after in the short term are precious metals (gold and silver), since these are widely known and their function as safe haven is well established. Other commodities might appreciate in fiat valuation, too. Bitcoin will also profit from such a scenario, albeit with a bit of latency, since relatively few people are well informed about it and have first to figure out how to buy it.

Since Bitcoin is sound money, which is not subject to centralized control nor inflationary effects, it's quite clear that it is perceived as an attractive investment in times of economic turmoil.

ya.ya.yo!

That will be huge for bitcoin, price will go up by a LOT.
I wouldn't be suprised if bitcoin once more will surpass 1000$ mark.

I don't want to bubble to burst... or even exist in first place, but thats our reality :/ it will cause a lot of saddness in many people's lives.

central bank bubble bursting will send fiat into a spiral.

but you have to think of it from the price of bread, food and clothing prospective.

even if bitcoin($~600) can now buy you ~400 loaves of bread ($1.50 each)
bitcoin fluctuates so you cannot always buy the same amount of bread.
last year while the average loaf of bread was ~$1.50 bitcoin would only buy you 166 loaves (bitcoin $250)
a couple years ago bitcoin had a pricepoint of getting 600 loaves of bread ($1000 spike of 2013)

when the bubble bursts, inflation can take bread up to $2.50 a loaf, and hyper inflation can take a loaf of bread to $200 a loaf and upwards of that.

so yes bitcoins £/$/euro price can increase to $800 but the amount of loaves of bread you might get, may be far less than 400 loaves of bread.
the bubble may cause bitcoins price to go upto $1000 but the amount of bread you can buy again might get you less than 400 loaves of bread. and definitely not the same as 2013

bitcoins price is NOT pegged /fixed to the dollar inflation.. yes inflation can inpact bitcoins price but what you can buy with it is more important then the value itself

I think nothing would happen to bitcoin, more likely to gold, and crude oil. Not much people use bitcoin. Only if it hits the US dollar.

the bitcoin price would be growing a lot then in my opinion, it would make us all some decent money

I agree with your opinion, although it is not 100% accuracy true but the bitcoins is best choice for today to making investment into it. Bitcoin be more easy,simple fast and low fees than making investment into gold, silver or stocks. There are not people who control the bitcoins.

The bubble burst is not only made the value of bitcoin is an increase but like your definition is correct and +1 for it. the price of goods will increase too for equaling the inflation and so it's just like nothing happened.

exactly. there is no point in praying for bitcoin going to $10,000 a coin. if that coin results in only buying 2 loaves of bread.
take the Zimbabwe dollar as an example.

Bitcoin is a hedge against the current financial system, similar to how speculators invest in gold when things go bad.

yes it is a hedge. but has more usefulness then gold because you can actually buy things with bitcoin and trade it without any sweat or heavy postal costs.

but any asset is not a fixed opposition to inflation. even gold can increase in price due to inflation but that price buys less bread than before.
as you say its speculative, meaning variable, not fixed/guaranteed

This topic belongs to Economy and please post the link of the headline. It would be hard to discuss it if we do not know exactly what you are talking about.

On a related note, there was an article on coindesk.com about Bill Gross saying that the central banks are pushing investors to Bitcoin. He was quoted saying this

"Bitcoin and privately agreed upon blockchain technologies amongst a small set of global banks, are just a few examples of attempts to stabilize the value of their current assets in future purchasing power terms. Gold would be another example — historic relic that it is. In any case, the current system is beginning to be challenged."

http://www.coindesk.com/bill-gross-casino-markets-pushing-investors-to-bitcoin/

So a statement like that coming from a person like him solidifies the fact the Bitcoin can be used as a hedge like gold to keep value and as a store of value. Any price blips down should be a sign to buy more on a bargain. Another economic collapse is just around the corner.

I think there will be not much effect on bitcoin price like during brexit. Bitcoin marketcap is still low and not quite popular among elite forex traders even though they can trade bitcoin. Only few speculaters may invest in bitcoin but majority will divert their investment towards traditional gold and oil market.

I think that depends on how they will launch it .but morely i think that it will have a big impact after a few weeks cause many bank users will be curious about this bitcoins ,well then it will take a sudden time for it to become known .

Just a headline and no analysis.I don`t believe rumors.

Central banks really create a bubble,but can you proove it will burst soon.I can`t see any evidence about this

There are rumors about the apocalypse everyday and so what?Should we believe them?

There will be a giant price pump on bitcoin, people panic to buy bitcoin bacause bitcoin is a good way to avoid risk. We should know the danger of fiat risk, remember 2008 financial crisis? I believe bitcoin will be 1-2k usd when fiat bubble burst

You would need to factor in both influences for this price rise, before you can make such a assumption. If 50% of that price rise, was due to a higher demand, then the value would still buy you more, than what you would have bought, even with the inflation affect of the fiat increase.

The Bitcoin price are based on supply & demand, so the fiat value will rise in relation to that, because there will be a higher demand for the coins too, when the people flee towards Bitcoin as a hedge against the devaluation of fiat currencies.  ^smile^

I think bitcoin's price will increase, will there are many people who make investment to bitcoin due to it can not be played by bankirs like fiat money in my analysis.

Although, I would really want to know the basis for the position the author of the article but I don't think the burble burst of the central bank would neccecsarily means a boost for bitcoin because things does not just work white and black just like that as the world financial system have faced serious crisis in the the past and they were able to come out of it even before the advent of bitcoin.

bitcoin would be more in the news and we would see some newbies for sure and a price increase too. how big this would be would depend on how big the crisis would be. but i wonder what bitcoin could handle.