Bitcoin Forum

as soon as another Major bank crashes Bitcoins will rise to they sky. so let's hope for a bank to crash lol

lmao

Just not my bank please. I like the people that work there.

you're reaching here. "good news, price down? we need bad economic news to drive price up!" meh, bitcoin will go up when everyone has given up and all the leveraged longs are dead. :P

If a major bank collapses, and there is a big bank run, how are people going to wire funds to Bitcoin exchanges in order to bid up the price of Bitcoin?

Au contraire, a bank collapse, followed by a bank run that isn't bailed out by the government/taxpayer would result in massive price deflation of everything, especially in something like Bitcoin.

In a deflationary bank crash, what you would want is cash. Piles of cash. Not in the bank (where it will be disappeared) but under your mattress.

^ Indeed, what bitcoiners should be hoping for is that QE to infinity continues.

Banking issues are no good for bitcoin in the short term. We all know what happened when the PBOC squeezed out liquidity to Chinese exchanges.

yep, no money, no honey! all hail free money and easy credit! as far as banking issues go, i'm not sure that the type of situation OP is talking about is comparable to the PBOC ban, but unlikely IMO to cause the type of "panic buying fever" that bitcoiners expect. :)

I totally agree. A major issue during the 2008 crisis was counterparty risk, and bitcoin doesn't have any. Cash is only worth as much or as little as the government prints. Governments can't print more bitcoins. All major banks are technically bankrupt, but it's the cycle of credit and confidence that keeps them appearing solvent. My bitcoin balance will remain the same. Admittedly the value of each bitcoin is volatile, but in those circumstance I'd be happy to take a volatile currency with set unit numbers and no risk of bankruptcy vs the financial mainstream.

A major bank crash seems to be unlikely in the near future

We don't want that to happen just yet. Let the BTC infrastructure improve first then let's see mass adoption after that.

As much as people dislike fiat, bitcoin has high dependency on the banking system.

That is the only way for merchant to convert bitcoin into fiat and back to their own bank account.

WTF? Tell that to the Fed http://www.bloomberg.com/news/2014-08-05/biggest-u-s-banks-told-to-simplify-their-living-wills-.html

awaiting another country to go under (cyprus all over again)

How high did bitcoin go up when Cypus went under?

Argentina going under doesn't seem to have any effect on coin price.

The leaked Mt.Gox data shows that practically no Cypriots had accounts on Gox (the dominant exchange at the time). 

The Cyprus crisis was just an excuse for a rally and not necessarily the actual reason for it. The real reason for the Q1 2013 rally was due to ''fear of missing out'' by Western techies.

For one thing this is a rather destructive thing, to actually hope for the failure of a bank. But it also comes around as a rather last hope for Bitcoin if you phrase it that way. I know we're all hoping for Bitcoin to succeed (most of the people around here, anyways) but should we be focussing on the positive things, rather than hoping for banks to fail???
I know this thread may be a bit cynical, but stuff like this makes me question a lot of people in the Bitcoin world... Bitcoin succeeding doesn't have anything to do with the traditional Banking system going bust!

So, bitcoin is over hyped and it will not stop the world from sinking into a black hole of debt.

Let us hope the Eastern techies drive up bitcoin in Q1 2015 due to their "fear of missing out."  ;D

Well, when the Cyprus incident happened it sky rocketed from like 30 to 250, so there is a correlation between crashes and BTC bear rallies.

The only thing is not every one will react the same way. Adaptation is slow but sure, it's not going to happen overnight. If a bank collapses the first thought in people's head won't be to run to Bitcoin to save them.

Changing fiat to bitcoin won't be instantaneous as well, especially if you have large amounts.

There were less than 40 Cypriots on Mt.Gox out of the thousands of users, hardly the cause of the rally.

http://laanwj.github.io/gox_analysis/

The Q1 2013 rally was mainly due to price chasing, not due to actual fears of bail ins.

This thread is really stupid. How many people got their money out of Gox or banks that go south.
If you're lucky (like us dutch people) the govenment guarantees you first hundred thousand euros. Not all countries are that nice.


How people think crashes work
------------------------------------------
YEAH!!! When a bank crashes all people will put their money in Bitcoin.


How it really works
------------------------------------------
CRASH!!!......
Get your money out quick ...
Shit site is down, ATMs offline ...
Bank is closed ....
Money is gone and liquidity is sold out....
I'm poor HELP!!!  :'( ....
Tough luck suckerrrrr!!!!!!
No money for bitcoin  :'( :'( :'(

Good one.

Also like to add one point. When shtf for a country, the last thing on the people mind is bitcoin.

Security, food and survival items will be more important during crisis.

It really feels like ecomonic collapse is right around the corner.

However, these things usually take alot longer than we'd like...

Alot of experts are calling for September/October 2015 for the next collapse and I think that's highly possible. The only difference between this one and 2008 is that this will be the big one where the dollar gets taken down along with the bond market, stock market, housing market, and the banks!

There's no better time to stock up on BTC !!

Economic calamity never happens with interest rates so low (except in Japan), but once Yellen and Draghi boost short term yields to 4-5%, it is possible, but it (going back to 4-5%) may take quite a few years.

There can always be further rounds of quantitative easing.  ;D
All the more reason to stock up on bitcoin.

The 100,000 euros banking guaranty applies to all the UE, not only to the lucky dutchs.

Money printing is the equivalent of negative interest rates, and has a long history of leading to hyperinflation and economic collapse.

"Printed" (currently, most of the money is created by adding a 1 and a lot of zeros to bank accounts with the central bank) money is only a part of the monetary mass. If there is a credit crunch, money printing doesn't create inflation and, therefore, there is no negative interest.

No doubt, fine tuning the print of money is hard and can get out of control. Up to now, everything went fine.

In order for them to boost interest rates to be this high, the economy would first need to be much healthier then it is now. I would very much not see this happening in the next few years. They would first need to stop new purchases of additional bonds (QE) before this would even be a possibility. Even with it being a potability there have been several articles that discuss this not working in the same way it has before because of the fact that banks have so many excess reserves.  

I hope all of them can exist and develop well. :D