In USA, I don't think there is any problem, just cash unbalance between small and large banks.

In digital era, money withdrew from small Bank A will end up in large Bank B, Bank A just need to borrow them back from Bank B to deal with cash shortage. And that is why JPM and other large banks who received those money are willing to help the small banks. Money does not go anywhere outside of the banking system. However, this is a good chance for large banks to wipe out competitors by refusing providing help

Credit Suisse's case is little bit more complicated, since they use Swiss Franc, could not get that help from other Swiss banks if the withdraw is in form of USD, they have to borrow money from withdraw destination bank, and when that is not feasible, they were wiped out

It seems that they have find a way, print money inside banking system to solve their liquidity problem, but never let them out to economy through high interest rate, to control inflation

It is mostly a distribution problem, you are too far away from the center of money distribution, e.g. FED and their friend banks, so you feel that the money is difficult to get, while bankers are swimming in trillions of dollars

There is no such thing as "intrinsic value". Maybe the closest concept is the amount of usable energy a product/service contains

The edge that you describe is "Unit of accounting". This must be the most strange concept in human history. Unlike KG/LBS or Meter/Foot (that can be verified scientifically in all the labs around the world), the unit of accounting in each country's financial system is its fiat money. And to ensure its stability, central banks look at CPI to monitor the inflation and adjust the money supply in according.

This whole concept of price stability of fiat money is just based on people's imagination and blind trust, it has nothing to do with market supply and demand. For example, FED created more than 5X money in a few years after 2008 financial crisis, and the goods and services did not increase that much, if not decreased, but you never see anything's price rose by 5x in that period. Why? Because most of the people do not have financial knowledge, they think USD is just like LBS/FOOT, have a fixed value and it is used to measure the value of anything else, regardless of how much it is produced

But there is no need to wake up everyone when they are sleeping, that is how today's financial system works. They can believe in what they want to believe, while smart people profit from it

In cryptocurrency, you don't have that imagination and blind trust, so you see the value of cryptocurrency fluctuates because of supply and demand. If one day, people start to use cryptocurrency to measure value, then they will discover that everything's price measured by cryptocurrency will keep going down, because of the limited supply of coins and forever increasing supply of goods/services. Those who hold coins would just become richer and richer by doing nothing, and business making production will find out that when final product is released, its sale price already got lower than the cost, so they end up doing nothing too. And that's why modern monetary policy don't take this approach, it will discourage any economy activities and cause recession

This is really a concern that everyone has, I want to analyze it from pure buy and sell power angle

I have followed the price movement for many years. What I observed is that some kind of price stickiness in it, so it maximum crash 80-90 percent.

I think this is due to combined effects of 2 major driven factor:

1. dramatically reduced selling pressure when the price has gone down so much
(For those who bought the top, it doesn't matter if they sold at 90% loss or 100% loss, they have lost most of their investment anyway, so they end up do nothing and hodl, and this in turn reduce the sell pressure)

2. dramatically increased purchasing power of market buyers
(With same money, you can buy 10x more coins when price has crashed 90%)

That's why when it crashes 90%, the sell pressure will disappear and price will start to stabilise. As a result, if you could drive the price up 100x, even after the crash, you could raise the new bear market bottom to be 10x higher than the old bear market bottom. And that will draw new participants

A big limitation is the fiat money inflow channel, today many banks are restricting it, trying to starve the cryptocurrency market, but with the rise of USDT and other stable coins, it seems the community has find its own way of generating liquidity without fiat money inflow, this is the new development and will raise the price by a few magnitudes if keep going without restriction

I don't like calling anyone parasite. It is based on the simple definition that everyone must contribute to someone else in society, otherwise he is a parasite. That is a communist way of thinking.

Many people born in rich family, they have plenty of resource that can support them for generations, they don't need to contribute to society, and it is a blessing if they don't start a war against another country just because their benefits are hurt

Many people born in poor family, they have no chance to get a good education or job to support themselves, they end up receiving social benefits, it is a blessing if they don't go on street and rob other people

This is interest and worth debating. Value depends on supply and demand, as long as people want money, it has value. So by giving other people money in exchange for their product, you are doing fair trading and satisfy other's need of money, how is that not creating anything for anyone?

The real question might be: Why people need money? Does money has value? And where is that value coming from?

By the way, if you want to eliminate rich parasites, then you should first disable private ownership of properties/land, since every land owner is able to do rent seeking and live forever on passive rent income. But if you remove the private ownership of properties, then you have communism society, no rich parasite for sure but lots of politic parasites

And another question, does it really matter economy being strong or weak, as long as most basic needs can be satisfied and national defense is strong enough, like Russia?

Totally agree!

Although there is a need for hedging price risk for a future delivery of commodities/goods, such kind of risk does not exist for bitcoin, since it is always delivered instantly in an hour

Futures and options for bitcoin seems to be merely a complicated way of gambling using leverage

It is very similar to the situation in container transport right now, the price of each container has risen 1000% since last year, because limited capacity and more goods waiting to be shipped before Christmas season

Bitcoin is just like a money container, when lots of money need to be transferred/stored using bitcoin, and there are just so many bitcoin available on market, then each bitcoin would cost much more to acquire.

They are definitely not the richest person on earth, far from it. The wealth they hold is barely a few week's QE of one of the many central banks. I also remember a few months ago, there is a report claiming that one trader's position in an exchange is larger than all their wealth.

There are many misunderstandings regarding the chinese ban of cryptocurrency trading.

The original text from authority is:
（二）虚拟货币相关业务活动属于非法金融活动。开展法定货币与虚拟货币兑换业务、虚拟货币之间的兑换业务、作为中央对手方买卖虚拟货币、为虚拟货币交易提供信息中介和定价服务、代币发行融资以及虚拟货币衍生品交易等虚拟货币相关业务活动涉嫌非法发售代币票券、擅自公开发行证券、非法经营期货业务、非法集资等非法金融活动，一律严格禁止，坚决依法取缔。对于开展相关非法金融活动构成犯罪的，依法追究刑事责任。

It clearly says, the cryptocurrency related exchange business is illegal, means exchanges and centralized dealers are illegal. But it did not say the trading of cryptocurrency is illegal.

Of course it will be difficult to trade without centralized exchanges, but there are still decentralized exchanges and many private person that trades cryptocurrency, those are not illegal unless you trade daily as a business. For example, a chinese family, farther buy 0.1 ETH from his son, who mined ETH using his graphic card, how is that illegal?

And  when a foreign dealer trades with chinese people on a foreign platform, even by chinese definition that service is illegal, but in practical a chinese law have no effect to any person/entity that is not in china

So the whole chinese cryptocurrency ban is aimed at centralized chinese exchanges and professional chinese dealers, nothing more. Many western medium misunderstood that, showing that they don't know much about cryptocurrency either

Let me give you some piece of paper and call it money, do you believe in it? (might be a currency from an island country that you have never heard of)

What you believe is not money or wealth itself, but the ability of something that can get other things you want.

Essentially that is a power to let others serve you and satisfy your need, that's the real motive behind money or wealth seeking

If you are a king, you don't seek money or wealth, since those are just tools that you can create at ease

If you are super rich, you might not seek them intentionally, since all your needs are satisfied for hundreds of years to come

If everyone have billions of money like in Zimbabwe, then you must seek much more to satisfy your need

Exactly, tax should all be zero when government can get unlimited money from central banks. The government's tax income is neglect-able comparing with huge amount of fiat they borrowed each year from central banks, why government still tax in 2021 is out of understanding of who understands modern monetary policy

Super power do not like to be blocked, large nations have demand for unblock-able funding

I just saw a movie series about an ancient king seeking immortal life by uploading his memory into another new body every time he dies.

It is quite similar here, since memory is just lots of data and logic, you could upload your data and special logic onto blockchain using smart contracts, it could run many generations after you died. This has been simulated in many sci-fi games but all those systems failed eventually, since there is a single point of failure. Now it is actually making some sense on blockchain

Constructing the rules of an ideal society, and let the rules run on blockchain for thousands of years, even better, those rules have the ability to self-upgrade, we are just seeing the beginning of this revolution for humanity

It is really beyond all of these. From surface, it is a new internet form of private ownership of properties, but deeply inside, it is an immortal spirit that could last thousands of years, like language or religion. It established on humans fear and greedy, providing ultimate safety and growth, which every human seeks, generation after generation

TLDR,

The only reason for hyperinflation is increased money supply by many magnitudes. Those newly printed money are distributed to a few government officers that owns the oil supply, lots of people in the country does not get more reward for produce anything, thus the supply of tangible products and services are still very limited, then the price of everything just go up

The strange thing is that once price go up, there is usually a higher motive to drive more production, but if it goes up too fast, there is no motive of production, hoarding assets instead become the first choice

Just like Tulip mania, everyone reached consensus that it is a way to get rich quick. Here it is the same, only the time frame is different: Tulip mania could last maximum a year, while bitcoin mania could last for decades or forever, if the fiat money supply keep increasing exponentially

The most widely spread consensus in the world currently could be English language, it is just a universal way of communication

But that was established during the phase of colonization for centuries, to establish similar level of consensus on bitcoin is much more difficult, currently only prevail in IT nerds and some financial people who have very good IT knowledge

It has been proven that USDT is much more suitable for payments, since people get used to use USD as base unit of value. Mortgage BTC and get USDT loans would also remove the difficulty in calculating capital gain/loss tax