Bitcoin Forum

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?

Cryptocurrency capitalization is very small. It is enough to sell several tens of thousands of bitcoins and the total capitalization drops by almost 1 trillion.
All capitalization is fake values.
Perhaps when the capitalization of the cryptocurrency market increases several hundred times, it will be a big threat to financial systems.

Mortgage backed securities are not the main reason for the 2008 financial crisis.
Credit rating agencies were selling fake data to banks,and the banks were lending loans that weren't backed by a big enough collateral.This caused a bubble in the US real estate market and when the bubble popped,the people refused to pay their debts and the banks had liquidity issues.
The crypto market won't lead to a financial crisis,because:
1.The banks won't adopt cryptocurrencies.
2.The majority of the people and retail businesses won't adopt cryptocurrency payments.

Personally, I do not think that cryptocurrencies could be the cause of a financial crisis in the near future. We may be on the verge of something like this and the collapse of the US dollar, but this will not be related to cryptocurrencies.

If US policy continues and they continue to accumulate foreign debt with no visible effect on the economy, it could lead to a collapse of the dollar, which will affect the financial picture around the world.

You confuse financial crisis with market crash. Those are 2 separate things.

And crypto is too small. Way to small to matter. Whole crypto industry is as big as Apple company. You could as well ask "will we see next financial crisis because of bad sale of the new IMac pro" ?

Next financial crisis already have its "sponsor". Its depth bubble, QE bubble.

OP is probably trying to start a discussion in response to some recent articles like this one
https://theweek.com/articles/983641/cryptocurrency-cause-next-financial-crisis

I feel like it could start a fiat money crisis and I'm saying it because there have been rumors that banks will start to ask you to pay for your account, just like they ask you to pay for a credit card.
Bank services used to be more or less free with only some paid services like instant transfers, currency exchange, loans and so on. Now they are going to charge you monthly for your account. If that happens more people will decide to withdraw.

Bitcoin is not as integrated into global economy as other finance-related things. After all, the global economy is still in big trouble because of the pandemic, but Bitcoin has been growing for most of the pandemic. So I don't think cryptos can trigger the next global financial crisis. They might go down with other things or rise at their expense, but probably cannot be the cause. Speaking of the cause, aren't global crises natural and supposed to happen once in a while in the current economy? It can be postponed or come a little early, it can be more severe or milder, but it's not completely avoidable.

You are looking at bitcoin in a tunnel vision, there are a lot of different factors that causes a financial crisis. Also, 2008 crisis is a year older than bitcoin since it was developed in 2009 and I think the reason for that crisis is the housing prices or the mortgage in housing. Also, bitcoin is decentralized so there's no way that it is tied to mainstream economy.

will crypto cause the financial crisis ,, before the arrival of bitcoin, the global crisis also occurred in 2004 ,, and now the global crisis is happening again because of the pandemic problem ,, many jobs are restricted, flights between countries are restricted, so in my opinion cryptocurrency is not the cause of financial ruin global ..

Isn't it funny if it would be the lead to the next financial crisis?
Since many of the old or real crypto enthusiasm believe or thinks that Satoshi creates Bitcoin because of it?
And it is created to give us financial freedom but in the end it would be financial crisis.(If it would really be the lead to the next financial crisis)
But I think it would not be the lead or reason for the next financial crisis like most of us who answered this question.

I don't think so.

Only 2.8% of the population globally owns cryptocurrency, it's too far on making the next financial crisis just because of cryptocurrency, besides, it's the exact opposite. Fiat is the reason why we are experiencing global crisis, that worsen because of the pandemic, fiat is trash to be honest, because of inflation.

If you'll think about it, the positive things about Bitcoin always outshines the negative temporary bad news about it, like banning cryptocurrency in a certain country and will uplift it after a while.

Just by considering the fact that not everyone knows about crypto nor the world's economy relies on it, we can already see that it wouldn't be the cause for another financial crisis. It is not even legal on many countries still and its value is not even stable due to high volatility so the world would definitely try and be dependent on it. There maybe a crisis in the crypto world at the moment but that does not mean real world will also experience the same thing. Let us know the use of bitcoin more so we wouldn't wonder anymore what it could affect and what it cannot.

It may lead to the next financial crisis of a little percentage of the population that patronizes Crypto and buy at its peak and sells at a loss when its prices dump.  Honestly, what made you (@OP) think that there is a possibility that crypto will lead the world to the next financial crisis?  With its little effect on the economy, yes it is emerging but it is not that huge enough to have a disastrous effect globally.  Maybe to selective individuals that do not know how to handle their emotions and bought in FOMO and panic sell at a loss.

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. Bitcoin is more likely to be part of the solution than the problem itself, because during crisis times investments like bitcoin can help people to protect their money against corrosive inflation.
You pointed out mass adoption can lead to crisis, but I think we should keep in mind bitcoin supply is limited, while another products or technologies you mentioned weren't.

It for sure is but we have to understand that people who are investing in cryptocurrencies are of these types:-

(Considering their crypto Investments are not the only investments that they have)

1. Small holders
    They are holding small about of cryptos and they can also manage any loss without adverse effects for the long term.

2. Whales
    People who have a lot of money invested in cryptocurrencies and these people can take a loss anytime. They already have big companies and if something happens they can just move down their financial class.

3. Traders
   They will even make money with the price is down. It's all about the Volatility for them.

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I think the chances are low for sure.

The believe institutional Investors have in the network is increasing, but that's cause there is already a financial crisis/inflation, which wasn't caused by Bitcoin in the first place, but prolly by the pandemic and printing of more money to control the pandemic, thus, Bitcoin or cryptocurrencies imo can't cause a financial crisis, but it can be a hedge for people to hold the value of their funds when the economy is struggling and cost of living is skyrocketing due to a reduction in the value of Fiat.

If you study the history of bubbles and economic disasters, you will find that the collapse was the end result of a long series of catastrophic mistakes represented in weak supervision of the banking sector, inequity in the distribution of capital and random printing of money. The current financial system is like a domino stone, which means that the collapse of any part will ultimately lead to a global financial crisis, so the question is when will it occur, not the causes, or the correct time when the straw that will split the camel’s back will come.

The events leading to the dotcom bubble and the 2008 financial crisis required tons of investments and money from traders and normal people alike to happen—an amount which isn’t even comparable to the total crypto market capitalization. Perhaps it could be a precursor to something bigger than itself, but I do not see the crypto hype leading to a financial crisis given that traditional assets such as stocks are also receiving an insane amount of money injection for the past decade.

Cryptocurrency capitalization is not yet large enough to have a significant impact on the global financial system and pose any threat to it. This has already been stated many times by various gatherings of representatives of states, including the G20 countries, as well as specialized government bodies, as was the case recently in the United States. In addition, cryptocurrency is practically not connected with the economies of states, and therefore cannot cause a global economic crisis. Such claims have no economic basis.

Crypto bubble was/is still small compared to dotcom bubble or the housing bubble, so it won't have any macroeconomic effects. Institutions only started investing in Bitcoin in this cycle, and they don't touch altcoins, and they didn't put even that much money into it. Bitcoin can go to zero tomorrow and these institutions won't bat an eye.

hello sir, in my opinion bitcoin is currently in its peak era and will have a bad impact on global finance, for example, now many people flock to bitcoin when bitcoin reaches its peak, and when it is below people who were at the top will be forced to go down and the economy they are very disturbed so the biggest threat is when bitcoin peaks there will definitely be a very sharp derivative, it will greatly affect the financial system

Bitcoin is independent of the market and has nothing to do with the real economy. A well-known investor believes that Bitcoin is a "limited edition digital cultural relic". It is a cultural relics market and has nothing to do with other financial markets. It is a group of cultural relics lovers. Pleasure trading, "I do not deny that this matter itself is a market that will continue to exist, but now it has nothing to do with our real life." How can an item that has nothing to do with our lives lead to a financial crisis? ? All in all, Bitcoin is that people think that he is valuable and he is valuable. When people think that he is worthless, he will be useless. The financial crisis caused by the Bitcoin crash can be said to be very unlikely!

Not that the entire blockchain will be packaged and added together. There is no other reason, the magnitude is not enough. In addition, the blockchain as a whole is also a relatively isolated market, and has nothing to do with other financial markets. In the future, no matter how high the market value is, it will be difficult for an isolated market to cause turbulence in the entire financial system. If it is related to the bank securities system in the future, it is hard to say.

The thing that caused the housing bust and the dotcom bust was reckless buying, not new financial products.  So in that regard, bitcoin certainly looks like it is subject to reckless buying quite frequently, which is why you have these sharp contractions.  As for causing a financial crisis, no, I don't think so.  It's not nearly big enough or tied into the financial system in a significant way to cause a financial crisis.  Bitcoin could go to zero without much significant consequence for the overall financial system.

It may or may not happen, but definitely not now nor the next year or two. The crypto market is still a small market. Considering that it is global in scope and that it is made up of thousands of different projects, a trillion market cap is still considered low. Who are the players in the Bitcoin market, for example? There are a few institutions, huge names in finance, some in technology, and the rest are retail investors. I don't know how it could trigger a financial crisis. Perhaps in the decades to come when the market cap is already reaching hundreds of trillions.

You need to know first how much Bitcoin total market capitalization between all fiats exist in this world, based on this site Bitcoin market capitalization dominance is only 0.53 % [1] not even enough to reach 1% right now. It's really small and doesn't affect majority of people, if Bitcoin dominance is already 20-30% of course people will panic and could face financial crisis.

Bitcoin crash is a temporary financial crisis for those people who buy Bitcoin on the peak before :P

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[1] https://fiatmarketcap.com/

The crypto market has improved a lot through blockchain technology to is difficult to say whether crypto will lead to the next financial crisis but the future of crypto is much better because of the rate at which millions of dollars are being invested in the crypto market even if the prices of currencies fall if the amount of investment increases the market will rise again. Just as banks cannot create virtual currencies it prohibits the creation of any money other than blockchain programmed and slow crypto will go a long way in terms of technology.

No, there will be a financial crash sooner or later. However, this crash will not be triggered by Bitcoin, but by irresponsible financial policies of many governments and central banks worldwide. Bitcoin and Co. will then be a safe haven for ordinary people, just as Satoshi once intended.

It is true that we had many narratives whenever there was a global economic crisis and it happens whenever the market reaches a point of speculation that would rally without making much sense and eventually it will lead the market to fall unconditionally and hopefully we will not see that situation here.

We are already struggling with the pandemic situation and many countries are printing more money and pumping in the market and it might create an issue in the coming years and we might even see inflation in the market and if everything aligns in the same path we might see another crisis.

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.

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.

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.


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!

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.

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 (https://bitcointalk.org/index.php?topic=5093271.msg57122349#msg57122349), 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.  (https://bitcointalk.org/index.php?topic=5337485.msg57009804#msg57009804)

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


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.

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.

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 ;) 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.

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.

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.

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.

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

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.

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

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.

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.  >:(

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.  >:(

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.

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.

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.

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.

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.

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.

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.

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 (https://www.techhypes.com/best-wifi-projector-artlii-energon-2-review-2021/)

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.

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.

 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.

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.

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.

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.

- 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.

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?.

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.

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 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.

But the money in cryptocurrencies is gradually becoming more and more ;) 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.

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.

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.

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.

The question is how much is enough to cause a financial crisis?
 People who come up with similar questions or criticism like yours often forget how much Bitcoin or true crypto have contributed to nations and people's well-being.
All I want and care about is that we do things in moderation and sensible manner for the good people/society.

Fiat and Bitcoin/crypto stakeholders shouldn't feel too insecure about the progress of the other but instead work together & ensure that everyone/nation benefits from their good progress/development

Also, OP should specify whether he is necessarily referring to a global financial crisis or whether he also considers a financial crisis on the national level. As for a global financial crisis, the cryptocurrency market capitalization is still way too small to release a real global crisis. The damage that was caused by the subprime crisis in 2008 was around $15 trillion if I recall correctly and that was real money in that market. In crypto everything is a bit bloated because when Bitcoin's capitalization is $2 trillion, that doesn't mean that $2 trillion were spent on Bitcoin. The numbers are quite a bit off and misleading here.

This is unlikely, to begin with the market is too small for this to happen so you should not expect this to happen, and second not all crises have to do with a new technology emerging, a great deal of the crises are nothing more but the government manipulating the markets and this creates misallocations of capital in which some markets have not a lot of money while others have too much money creating bubbles in the process, this is what happened with the crisis of 2008, and if anything the dot com bubble was special and when we see the size of the bubble compared to the current size of those companies it is fair to wonder if we can even call it a bubble in the first place and instead we were seeing the growing pains of a new market, something similar to what we see here.

I'm afraid not mate because first Manipulator will only make them slightly profiting because they are also afraid of losing their value when financial crisis happen and there is a possibilities that government will interfere and may lead to confiscation of their wealth.
and also in our time now where the government of aware of many possibilities ? they will hinder this to happen specially the biggest countries in the world.
exactly , 1.5 trillion in totality of capitalization what this will effect to quadtrillion funds around the world?

this is just a peanut to consider will lead to economic financial crisis.

It is obvious that we should not be worried about crypto "causing" a financial crisis, we should be focusing on how it can prevent one. I have to say that it is obvious for people to mistake what bitcoin is capable of, sometimes they think it is huge but then they realize if it is so huge then when it crashes then it should bring down so many people and create a crisis.

The first part of that is true, it is huge, it is over a trillion dollars even after the fall, we broke over 2 trillion dollars at one point, that is bigger than stock market of so many nations so we can clearly say it is huge. However what people do not realize is that even though it is huge, it is not a huge thing that causes crisis, it is a huge thing that helps crisis, in any bad situation if you are in crypto you are making a good profit, because that is what it is there for and that is how you make a profit during bad times.

The economic financial crisis with the crypto market crash that is happening right now are two different things and there is no correlation between the two. because we know that cryptos like bitcoin and altcoins are not integrated with economic problems directly and indirectly this will not be a cause or obstacle in the economy.
I understand better when the current crisis is caused by a pandemic that has occurred for 2 years now and is still continuing which causes at least losses in almost all sectors.

There is always a correlation, because everything is interconnected and does not exist in an airless space, just this correlation takes different forms and dependencies. In any case, the current price of bitcoin is higher than what it was immediately before the pandemic, and it was the pandemic that played the role of a trigger that caused the growth of the exchange price of bitcoin and other cryptocurrencies. And if at first the price of bitcoin increased against the background of the catastrophic impact of the pandemic on the world economy in the form of a lockdown and bitcoin acted as an analogue of a protective asset for investors, then the price collapsed, among other things, due to some recovery of the world economy and a decrease in crisis phenomena.

I don't think that the pandemic alone caused Bitcoin to go for a bull run. I think Bitcoin was just ripe for a move. It is not like people had more money during the pandemic that they could spend on cryptocurrencies or that they had to use cryptocurrencies more because digital payments were preferred or even required. I think it was really just time to take it to the next level. Everybody was prepared and eagerly waiting for it.

sorry but let me correct something. I think you're a little misunderstanding what the previous thread meant.
from before I never mentioned that the bitcoin price was damaged by the pandemic but I did mention the current economic crisis that is happening and causing losses everywhere due to the pandemic.
and if you look at the thread made by the OP then there is no correlation there between the fall of btc and the current economic crisis because it is not related at all.
and if you connect the pandemic with bitcoin it will feel makesense when btc experiences a price spike due to the pandemic because at that time there was a news that said that at that time USA policy pushed the demand for Bitcoin to increase.

crypto crash was over but prices are starting to normalise again tho i agree with you  . its true that cryptos are different
. not all are required to use a crypto so not all are going to get affected if theres a crash that will happen in cryptos  but all of the people uses a local currency or fiats and when theres a financial crisis that occurs , majority are going to get affected .  cryptos can infact help with this problem instead of causing a problem

Wait a minute is this suppose to be a crypto crisis or financial crisis been caused here.... if it's crypto leading to a crypto crisis because some financial giants are all turning to crypto I don't think that's possible today,central banks have safe fails against this and in a case of crypto failing I think a crash is what we could have and not a crisis.

I don't think these two things ( mortgage backed securities and cryptocurrencies ) have anything in common what so ever.  First off this would be assuming that the cryptocurrency market at as a whole is flawed , unsustainable and back by falsehoods.  I don't believe this to be the case so I do not think that this is anything like what cause the crash of 2008 or better known as the Great Recession.

There are a lot of interesting technology and ideas in the cryptocurrency space. But there is far too little attention being paid to the downsides. Crypto needs regulation to be safe to not lead to the next financial crisis. Maybe it experiences a lot of downfalls but still it will never be the reason that it end in financial crisis because as long as it gives even small profit, it helps a lot. Cryptocurrency experience great recession on the year 2008 and I hope it will never happen again.

Bitcoin is the largest disruption of financial systems in world history. There are a lot of entrenched government systems and institutional business models that are going to go the way of BlockBuster. For many, this disruption will feel like a financial crisis. At the same time, debt levels globally are cascading towards some pretty scary consequences. Crypto is to blame for the disruption of the old monetary system and likely to get blamed for fiasco central banks have caused.

Steeley

I don’t think that now cryptocurrency is such a massive occupation that it can have a big impact on the economy of one country or especially throughout the world. But, on the other hand, there are more and more people on the crypto market who come and start investing. I hope that people make their decision of entering the crypto market wisely and they don’t take loans for trading that they can’t pay off then what could be destructive for the economy.

As of now there isn't even a slight chance for cryptocurrencies to become the root of evil for the next financial crisis. Maybe if the overall market capitalization of all cryptocurrencies is above $5 trillion, we might slowly perceive cryptocurrencies and a potential massive crash as a systemic risk. Right now cryptocurrencies can't really do much in terms of initiating a financial crisis. Other markets are way bigger, riskier and way more dangerous to global financial stability. Just look at the housing market and the price explosion in real estate facilitated with newly printed money. Bubble?

The way the financial systems are linked and the massive use of leverage, small problems can quickly snowball and become systemic.  That's why you're seeing Janet Yellen start to talk about the risk posed by cryptocurrency because it's completely unregulated and operates in the dark.  Nobody knows if or how big of a problem crypto could spark, and that's a problem.

There is some truth to what you are saying, but there is also a difference between fiat money where you can create 9 dollars of inexistent credit money for every 1 dollar deposited in a bank account and cryptocurrencies where a bitcoin is a bitcoin, no matter what. You can trade crypto with leverage here and there, but you can't create a legal bubble like you can with fiat. What you can do is pump up bitcoin with printed Tether, but that can't be legal unless there is a real dollar (which in essence is a fake dollar) for every single USDT printed on the blockchain.

Why would it lead to? It's making everyone some money but at the same time it also makes people stay inside instead of coming back to the mainstream fiat based economy so I don't see how it's going to be that way for cryptocurrencies to cause a crisis, on the other hand, I think that we should look out for constant money injection in the economy through stimulus checks because they will cause hyperinflation.

I would always vote that Goverment response to natural disaster or Government regulations will lead to the next financial crisis over crypto. I think there are enough people with "diamond hands" that can prevent an overnight crash capable of causing a financial crisis.

Government is like support to cryptocurrency because whenever they kicked against cryptocurrencies is the more cryptocurrency get elevated or firm, the crisis's government can is base on what they regulate, so coming to cryptocurrency network nothing they can do that will lead to crypto crisis more especially bitcoin in question, for now adoption of bitcoin is getting influential every minute of the day.

Yes right, the government's negative response is the main cause of the crypto crisis, users will panic and sell at any price so that it makes crypto worthless, of course this makes a great financial crisis because the crypto market is currently very large.

A crisis only happens when people selling something for fiat money, and there is not enough fiat money. If crypto is owned by majority and they want to cash out, there will be a crash. However if they could just spend crypto to buy things, they don't need to cash out, so the fiat money liquidity crisis might be much less. In worst case, we have USDT and USDC that can be printed out of thin air to support the price

I always watched financial crises as a time of change! Yes, many big ones fall down, some new arise... while ordinary people suffer in that game of power! Usually the ones at the end of the food chain!
I believe that crypto is a new player in that game! The true power of crypto are people behind, there is a strong/rich group of people who stand behind the fiat/monetary systems around the world! We saw many little battles between crypto and government/bank sectors from different countries and looks like crypto is winning, simply because more people are joining, disappointed in traditional institutions!
It will be interesting to see what will happen, I expect some bigger battles in the future! More organized and widespread, probably after some big disaster, like it always happen!

many people have the wrong perception in this matter, not legalizing does not mean it is a negative response. I'm not too worried about this kind of news because I don't think it will have a big effect on the bitcoin price. Honestly I'm more worried about FUDs made by people like Elon  :D

I agree with your words that crisis is a time of changes.
In my opinion bitcoin and the whole crypto thing shows how it can be - open market for everyone anonymously with no credit ranks. Crypto market is a surgery tool, that shows us how a rotten system we have. And yes, it can lead to mass disappointment in the old markets and therefore results to financial crisis on these markets.

Government and central banks denyed crypto at first,
then they started to launch own crypto products
Because they know, if changes dont come from reforms, they come from revolution. So central authorities are afraid of this foreseeable financial revolution

That is a one-sided point of view in my opinion. Yes the cryptocurrency space shows that people desire for something that is different from what they are used to, which is first and foremost something that does not support quantitative easing and also raises capital mobility on the individual level, but we shouldn't forget that we are also all better off if we do indeed have some tools in place to get fraud under control as much as possible without sacrificing freedom at the individual level. I know that is a dilemma and it can never really be fully controlled for, but it is in our best interest to find the sweet spot. Crypto has its own set of problems that needs to be addressed.

The financial crisis does not always bring positive changes, for example in my country.  The crisis in 1997 has saddened us to this day, the exchange rate of the Rupiah which was stable against the Dollar is now very low when compared to the Dollar.  The hereditary state debt has become the biggest burden to date.  However, currently crypto does not provide the alleged crisis potential because crypto does not use a qe policy.  Everything is left to the market and if banks adopt crypto then people will realize that there is no need for a central bank anymore.  Because the whole economic system is rotten today is the central bank everywhere.  They are regulators as well as creators of chaos in the economy.

Compared to the marketcap of banks all around the globe what the cryptocurrency market holds is very small. Maybe the growth in a more sustained manner for long years might make some impact when there happens a crisis. In most cases the wrong policies, lack of transparency, and corruption is the sole reason for any form of financial crisis. When there is possible chances of correction through blockchain technology and adoption of bitcoin financial crisis won't be that effective.

I also feel that until now the usd dollar has felt very high in exchange value since the economic crisis in 1997. But also what makes it difficult for us is the economic system related to politics, and of course there are various interests that are not all devoted to the people. indeed it is different if crypto does not require a central bank which can actually cut operational costs, but again, the government is in charge of a regulation

According to economic historian from the University of Cambridge, Garrick Hileman, said cryptocurrencies triggered the trigger for the financial crisis. Hileman said the growing number of financial institutions interested in cryptocurrencies created a rapid increase of "systematic importance" giving rise to "systematic risk".

Hileman said this at the end of 2017 to Business Insider, at that time the price of bitcoin was still around US $ 19,000/BTC.

At that time, Hileman said that if there was a crash in the financial market, bitcoin and cryptocurrencies would be more widely accepted. The prediction is accurate, global financial markets experienced turmoil in March 2020 when the corona virus was declared a global pandemic. Since then more and more financial institutions to large companies are investing in bitcoin, the price continues to skyrocket.

In 2017, the price of bitcoin skyrocketed 2000%, to close to US$ 20,000/BTC. At that time, economists in a survey said bitcoin did not have the risk of triggering a crisis, because of its small market capitalization and separate from other financial markets.

The current market capitalization of bitcoin and all cryptocurrencies has certainly multiplied, because the price has moved in the range of US$ 60,000/BTC. Based on Coin Market Cap data, bitcoin's market capitalization is currently US$1.1 trillion.

In comparison, Morgan Stanley Wealth Management, which provides bitcoin access services, has AUM (asset under management) assets of US$ 1.24 trillion as of June 30, 2020, based on data from ADV Rating.

This means that the current bitcoin market capitalization is still under AUM Morgan Stanley Wealth Management.

Meanwhile, the market capitalization of all cryptocurrencies is currently US$1.81 trillion. This market capitalization is also lower than USB Wealth Management's AUM of US$ 2.6 trillion as of June 30, 2020.

The market capitalization of all cryptocurrencies is also much lower than gold which is around US$ 11 trillion.

Even if it is considered that bitcoin's market capitalization is still not large enough to trigger a crisis, Hileman said the integration of traditional financial markets is starting to happen and very quickly. Thus, cryptocurrencies will not only threaten, but could "exacerbate" the crisis if it happens again.

The economic crisis cannot be caused by Bitcoin, but the inevitable result of the current debt inflation in the legal currency system. The scale of Bitcoin is small, and its market value is not large enough to have a significant impact on the global financial system and pose any threat to it.
The collapse of cryptocurrency may cause serious economic losses to many investors, but it will not have a great impact on the financial system and will not affect the turbulence of the world economy.

We will never have a sound financial system, we can only thrive for a system that is less rotten than the last one. That is similar to what Musk said: Whether Bitcoin is the perfect solution that we are looking for to become a global currency. He answered no, Bitcoin is just less bad than fiat. I think I see some truth in that. Bitcoin will also be far from perfect because there is no perfection. Whenever it is about money, you will see powerful actors try to get control over it. This time it is just much more difficult as Bitcoin is way more resilient to power-drive attacks due to its decentralized nature and its incentive system.

The growth of crypto is something to celebrate But the impact of crypto on the world economy is negligible. Compared to other industries, crypto is still very young and small. At the moment, cryptocurrency is probably the place where some people can avoid the economic crisis caused by the covid pandemic.

I understand you
There are no only good things and only bad, they are all grey until you use it for the benefit of humanity.
Many people exploit crypto sphere in the aim to achieve fast financial success after holding several ICO and do nothing useful for market and society
It is very pitty that the most people still have no idea how to live this live. The answer is pretty simple: live in accordance with your brains and heart. All things and processes in the world will be nice and there will be no crimes, if only more then 51% of Earth population live their life in environmentally friendly way

So i just want to say that crypto and blockchain as a tools can avoid poorness in good and strong hands.
But in bad weak vicious  hands it will be scam after scam with no adoption for the world' benefit

The crisis occurred due to a lack of assets backing and also because of human greed.

These two factors can be controlled using blockchain, smart contracts and oracles. If the security of all issued loans, all issued shares and tokens, all the cash flows of companies and defi projects were available online on some analytics board, then it would be difficult to overestimate them and then drop the price. After all, everything is visible and understandable

Many people are starting to invest in crypto because of the faster growth in value than other investments. This pandemic made most people realize that investment is very important. This pandemic has made a lot of people out of work, people who invested in the past are very lucky because the investment really helped them in difficult circumstances like this.

I agree that this pandemic has made everyone aware of the importance of investing, so for those who have not invested in any assets. Now is the right
time to start investing in crypto, why am I saying that, because crypto's performance is the best compared to other assets in a pandemic situation
like now. Even many people become rich after investing in crypto, but need to learn first about how crypto works, that way we will better understand
how to make a profit from cryptocurrency.

 A cryptocurrency crash will lead to significant financial repercussions or even the next financial crisis. The future of cryptocurrency is bright as a lot of developments. cryptocurrencies are leading to systemic risk adoption and never ending supply.

The financial institutions that run the world are not heavily invested in crypto enough where a bubble burst would set them back.

What's going on in China is a crash after the nonpayment on billions in liabilities, and what happened with the housing market crash in the US was a bubble artificially created by banks handing out loans like candy.

Crypto doesn't necessarily have these issues because of the limit of supply. That's not to say if at some point the world was so heavily involved in crypto that a bubble burst could potentially cause strain, but the likelihood of that is small.

I don't think that cryptocurrencies will be the reason to cause a financial crisis in the future. The main reason could be that FED's continually printing money even without caring about it for example. It is not good to print more money than needed. This will cause your currency to devaluate and it may even lead your country to enter a bad economic condition also at some point.

Not crypto leads to the financial crisis (BTC has a fixed limit of 21 million coins, so it can't hyperinflate.) but inflation.  The Federal Reserve is printing more and more dollars every day. They’ve printed 10 Trillions of dollars during the past 2020 year or $27 Billion daily ( https://demonocracy.info/infographics/usa/us_stimulus_package_10_trillion_2020/us_stimulus_package_10_trillion.html ). So the inflation rate will run hotter than previously and it's only a matter of time when this will lead to financial crisis.  

Cryptocurrencies with a limited and transparent supply are different from fiat currencies, which have unlimited supply, so inflation occurs every year. if this continues, the intrinsic value of fiat currencies will continue to decline, and this could trigger a crisis. but maybe that's when crypto has a chance to have a hand in it

Cryptocurrency will not cause a financial crisis. The previous financial crisis was caused by the improper operation of the banking system rather than the collapse of the crypto market.

Cryptocurrency accounts for a small proportion in the world's financial system, and its market value is relatively small, and it will not have a particularly large impact on the financial system.

Crpytocurrency will not lead to a global financial crisis because most of the banks doesn't adopt crypto transactions or even the big names and brands of food, clothing, medical and etc. Crypto is just a small scale compared to other leading reasons that can somehow lead a financial crisis. Even if we combine the top 10 coins in the market, still it cannot shake the entire country nor world to cause a financial crisis.

Cryptocurrency are their to help the human race just like bitcoin was created on 2009 after the financial crisis on 2008.

emember why bitcoin was

When Top county accept 1/2 then all the middle country accept it and then we can get proper news from other so we have to wait to see very good something.

Cryptocurrencies will not lead to the next financial crisis. On the contrary, they will help prevent it from happening. We have just seen the case of the bankruptcy of evergrande, bitcoin and the crypto market felt it, overcame it and there we are still immune.

I always have the conviction that bitcoin and cryptocurrencies will solve the economic problems that nations are experiencing.

In the Latin American region they are following in the footsteps of El Salvador, it is only a matter of time before all countries embrace bitcoin.

It's not "inexistent credit money."  The vast majority of loans in the fractional reserve system are productive loans, meaning they're made to support new economic activity.  As long as that's the case, the new economic activity created by the loaned dollars justifies the expansion of the money supply.  This is why the system works.  If it didn't work, we would see constant bank failures and the system would have collapsed long ago.  But it endures because it works.  The criticisms against it you levied are common among people who don't understand it.

I don't think that crypto currencies are going to be part of the next big financial crisis. There are two big areas which worry me and they are independent of cryptos. The first alarming area is the ever rising debt levels in the world. Most of the western countries run a deficit and there is no end insight. Costs and spending are rising faster than the economic growth and if we include the demographic change than rfe future is not looking good. And the second big area to worry about is ever rising real estate prices. Interest rates are so low that taking out loans is the only chance to buy an apartment. But real estate price never rose forever in the past. There has to be a correction eventually which will turn all these loans bad. In my opinion the next crisis will either be a sovereign or a real estate crisis.

There will be no effect for now but I know as time goes on, the world government will have to scrap the idea of different currencies majorly the Fiat then the adoption of cryptocurrency in making payments and transactions will come in and there will be no need for the use of Fiat. The world system of Fiat as a form of money will soon end and I bet everyone to prepare for the new change of crypto system of money transactions.

It might end soon but we don't see that happening anytime near today.

What would be the next payment? I doubt that they're ready to adopt bitcoin and other cryptos that they prefer. Many of them still can't the fact that this is money and investment that works perfectly for individuals that have been in here for a long time.

That could be the case, considering most of the people nowadays are still in favor of fiat over cryptocurrencies. Which at the end of the day is the very same reason I don't believe crypto could ever cause a financial collapse. The adoptions are as slow as they go and no drastic measures aside from the El Salvador bitcoin adoption have been ever made that could cause discord amongst cryptocurrency fanatics and fiat users
Every crisis is preceded by an unfortunate event that lead the people to desperation. In this case it is the rising debt of the world against the dwindling intrinsic value of the US dollar. Should a massive adoption happen in the near future, we need to strap ourselves for a bumpy ride because price decline and financial crisis for the people who are into fiat is going to happen.

yes a lot of people invest in crypto because the returns are big, but the big returns are also accompanied by big risks because the value in crypto is very volatile. because the risk accepted is very high, many people are also reluctant to invest in cryptocurrencies. the point is not everyone is willing to accept a big risk to get a big return.

Bitcoin is not integrated into the global economy like other things related to finance. The global economy is still struggling because of the pandemic, but Bitcoin has grown during most of the pandemic. So, I don't think that cryptocurrencies can cause the next global financial crisis. Proof that BTC price is skyrocketing right now and the economy affected by the pandemic is gradually recovering. recovery but there are still a lot of problems to solve so cryptocurrencies don't lead to a financial crisis.

Financial crisis around the globe happens altogether in a cyclic pattern on specific time interval. The last one happened during the year 2008, and similar to such crisis happened in recent years due to the pandemic. Individual countries face financial crisis as a result of poor management and lack of proper planning. This can be overcome with the proper analysis and execution than just implementing for name sake. Crypto isn't gonna lead to crisis, and more governments have this fear. The right one's have taken it as a tool to come out of the crisis.

I agree with you, because we think that the world crisis is taking place in parts in different geographical places, each country after the pandemic has affected in some way, some more than others, however the most prosperous countries have found their exit faster than others, for the countries of South America being in pandemic crisis or not, there are many like Venezuela that do not see the light, the opportunities are running out, there are immigration problems that affect other countries and everything becomes more acute, causing poverty to increase, spending resources for many governments and especially some liabilities for the countries that are recipients of them, thus causing total Xenophobia.

It is unlikely that cryptocurrency is capable of leading the world financial system to another crisis. Recently, at one of the summits of the G20 countries, when discussing the problem of cryptocurrency, they came to the conclusion that cryptocurrency does not pose a threat to global financial stability. The state also constantly keeps the issue of cryptocurrency under control. If they see any threat from cryptocurrency, they can solve any problem with general regulation measures.

indeed the government does not seem to have lost control of everything including cryptocurrencies, they just make the rules and everyone has to follow them. and I think crypto is not a threat to the world economy, because crypto does not interfere with other business fields, and is purely independent even though many investors come from stocks that switch to crypto

The government may have nothing to do with the next financial crisis. The stable coins specially USDT is still a threat and if any action is taken against it, it would surely turn into the world next big financial crisis.

https://www.coindesk.com/policy/2021/11/30/us-policymakers-are-still-evaluating-stablecoins/

Global crisis always present even without crypto. It is inevitable scenario in our economy especially in country with poor governance and and there is widespread corruption which lead to financial crisis and and economic collapse. Cryptcurrency as a new world currency is not possible because not all countries legalize it and doesn't want a currency out of their control ,so it will not lead to the next financial crisis.

If we think practically still require crypto instruction to the larger part of the populace of the world.People still dont know crypto can boom the economy.It isn't indeed legitimate in numerous nations and its esteem isn't indeed steady due to tall instability so the world would certainly attempt and be subordinate on it. There perhaps a emergency within the crypto world at the minute but that does not cruel genuine world will moreover encounter the same thing.Crisis are each where we all know how fiat cash confront the emergency numerous times so usagee of crypto will not create emergency but forbidding and not legalizing the crypto it'll .

I definitely agree with this. They are holding 70+ billion dollars in their hands, sure they are investing it here and there and even making some profit with it I am sure but we are trusting 70+ billion dollars to a company and that's it. The moment that company collapses for any reason would mean that all of that money will be gone and all of USDT will worth zero and that crash could hurt crypto world unlike anything else.

It could be as big as anything we have seen. However, I do not agree that it may create a big financial crisis, in 2020 and 2021 just USA printed out 4+ trillion dollars, and yes it has a huge inflation compared to older days but they are still living, 70 billion gone would upset us, but it would not matter to most big nations at all. We just need to take care of ourselves and that's it. If we can survive that as crypto world, then we can survive anything.

From the time immemorial there have always been Financial crisis even before bitcoin was developed. The Financial analyst predicting the financial crisis should not mention bitcoin at all. Bitcoin will not the cause of the economic meltdown.

By the way, we don’t know if that the price of bitcoin is high or low means whether it will increase of course you deserve to join an investment like bitcoin right!  however, you really need to earn so that you can save a lot and you really need to make sure that you can invest little by little just in case or maybe you can hold back first regurgitate what you can invest and try to wait or persevere before  join so you don't regret it later, you know what i mean.  , investing is like a gamble that you do not know when you will win or lose so just be careful before joining an investment because we do not know if you need the right destination and must trust immediately make sure you really know how to invest right.

The financial crisis is caused by inflation caused by banks' random printing of money, and the small market value of Bitcoin will not be issued at will, and it will not have an impact on the financial crisis.

These are both FED based problems from easy money.  The MBS was never traced back to government actions but when you subsidize an industry you allow such bubbles to occur.  The solution from 2008 and 2009 going forward was to entirely take over the industry altogether, the majority of private US housing debt is now owned by government supporting false interest rates in line with FED policy, QE and so on.
   None of this is capitalism, its politics and central government distorting markets for political reasons.   The 'greater good' argument causes alot of harm in side effects.    Nobody has admitted as much, the waters are kept muddy because reform would be costly to whichever party forwarded such actions as required.
   'The can kicked down the road' is a phrase for the eternal problem which eventually does result in a crash or "financial crisis" as OP mentions.  Not because I want it, my commentary would be seen as radical and rejected as such but the basic elements of economics reflect natural dynamics that eventually will deny even the iron grasp of government control.   Same reason why communism is a failure and so on, not because of my or anyone elses personal preference but it just doesnt naturally work and eventually results in failure, collapse and death in the population from starvation in the extreme.  Communism is willing to take that risk, suffer that loss for its continuation of the elite but I do hope we are better then that and able to correct and reform mistakes before the worst occurs

Crypto is not the cause of a problem to finance private, corporate or national interests, its a self adjusting system with no force on the economy except through the free choice of users.  There is no subsidy to its operations, no taxes or laws that deny freedom to use alternatives nothing that resembles a negative not already reflected in its free market price.  Everything has faults, the worst systems are rigid and wont allow any reflection of failure till its too late to adjust course from a crash; this is not the nature of BTC imo

I consider the crisis of the contemporary economy to be the collapse and degeneration of the entire government system and the collapse of government intermediaries, central banks, treasury... It's not simple.  is merely one possible causative factor.  Inflation risks are seriously increasing amid the heavy impact of covid19, which shows that the current currency cannot meet current requirements and that entails a delayed response to issues urgent in the future.  If bitcoin and cryptocurrencies are supposed to be the reason for that then it is completely untrue.

Very unlikely. While I do not believe bitcoin is tulip-mania but there is a precedent for the sudden drop on what at the moment was an speculative, but quite minoritarian asset and that is effectively the tulips in the 17th century, in Holland. It did not provoke a crisis at all. Fortunes changed hands, a few got rich, a few lost their fortunes and other than that...life went as usual.

Now, this is a completely different thing when a crisis strikes to a widely distributed assets such as mortgages or large banks. These are "too big to fall" and do influence the economy. Bitcoin is not even near that.

yes the financial crisis existed long before bitcoin existed. I actually think the opposite, I think bitcoin will reduce the impact of the financial crisis because bitcoin is able to improve a person's economy. the problem now is that not everyone agrees with this, many people think bitcoin is a high-risk investment and can cause losses in a very fast time.

it is still difficult if crypto can be the cause for the crisis. I think this is still uncertain because the power of crypto in the world is very small, the crypto market is still easily shaken by small issues compared to money in all countries or companies that are very different. so the narrative I think is irrelevant

The tech bubble had a lot of institutional money in it, Bitcoin not so much, in fact it is only starting. So, claiming that cryptos will lead to the next financial crisis could take place but not until at least 5-6 years later from when institutional money has started to flow in. Therefore, as more and more of these self proclaimed BTC crash experts proliferate it is safe to assume that a bottom is forming.

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

when compared to the world economy bitcoin is a small investment, but bitcoin will continue to grow as more and more new investors invest in bitcoin. We all know that the price of bitcoin continues to grow and the market cap continues to increase, that way bitcoin could be something big in the future.

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.

if you compare it with the world economy the crypto market capitalization is indeed much smaller, but if you compare it with the economy of a country the crypto market capitalization can be said to be very large and even exceed it. even the market capitalization of bitcoin alone can pay off the foreign debt of several countries, meaning that crypto has the potential to boost the economy of a country and even the world economy.

To make a financial crisis market cap should be larger. Mortgage-backed securities in 2008 market size were almost 4 trillion. At that time this was quite a big figure for the world economy. The Crypto market is still new and someone could crash the market with only several thousand BTC.

Right now this may not be the reason for a financial crisis but in the near future, it could be. The more we are heading towards web 3.0 the more crypto adoption will begin. This could attract big institutions which could manipulate the markets more frequently.

All cryptos worth $2+ trillion, so it is not really small. Nevertheless, crypto will not lead to a financial crisis. There are several reasons for this. Institutional investors and banks are only investing in cryptos with a very small portion, if any.  Moreover, compared to other assets, relatively few cryptos are bought with loans.
If I see a financial crisis, it will be caused by other asset classes, for example real estate, which is massively overvalued almost everywhere in the world. A good example is China, but also Australia, the US and many developed countries in Europe.

It seems to me that today the world has not yet emerged from the economic crisis that began due to the coronavirus.  in many countries, the authorities are very actively beginning to transfer the population to non-cash payments in order to increasingly begin to control people.  Perhaps cryptocurrency projects, such as Junca Cash, which are designed to make a person's dreams of anonymous and decentralized money transfers a reality, will make us happier.

Cryptocurrency cannot yet even theoretically lead to a global economic crisis. States are watching this rather closely. Therefore, at the recent summit of the G20 countries, they considered the impact of cryptocurrency and came to the conclusion that it does not yet pose a threat to the stability of the global financial system. If they further acknowledge such an impact, then the measures against the cryptocurrency will be quite tough.

The reason in 2008 that housing caused a crisis in banking was it was used for tier 1 capital, core to the basis of all the banks lending was the value of this highly rated AAA debt.  Crypto in no way compares to level of assured value, its speculative much like any commodity trading the pricing is volatile and subject to change at any given moment; as such losses are much in the vein of caveat emptor.