What would happen if a major financial crisis hit entire world in a few months

[metropolit]

Remember how financial crisis in Greece looked like? To sum it, all banks were closed, you could withdraw money only from ATM's and those were capped on 60eur daily.

If this happened globaly but on even more apocalyptic scale, how would it affect the Bitcoin world?

My guess is the price of BTC would reach the moon, BUT, how would we live with Bitcoins and without banks?
Currently we have cool services like Xapo which provides you a debit card so that you can withdraw your BTC into local currency. But bank that is supporting Xapo in this business would also be closed and i guess this debit card wouldn't be of any use if a major financial crisis occures.

I guess all BTC ATM's are relying entirely on banks?

If there would be no liquidity for the BTC, maybe gold would be a better option? You can always sell gold...

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[franky1]

tough question. but ill have a go

though bitcoin is a good personal asset to hedge against fiat.
human decision especially with a lets say 60euro daily limit would be

obvious essentials come first.
first food stockpile
second car fuel - if you cant get to the store or an ATM or to work your screwed for tomorrow
third electricity and water bills paid off
forth housing- you dont want them making you homeless even if its the banks fault

then if you have anything left. you would stockpile food or pay off bills in advance to give you breathing room..

then if there is any left. then you would ensure its not held as FIAT but as something else like personal assets of value

[Carlton Banks]

So.......

Franky would arrange a roof over his head.......last?

And besides, OP said "financial crisis" not WWIII lol





Get some sleep. Another big shift tomorrow.

[franky1]

So.......

Franky would arrange a roof over his head.......last?

And besides, OP said "financial crisis" not WWIII lol

Get some sleep. Another big shift tomorrow.

lol you dont pay your rent/mortgage by the day, but you do need food, car fuel more regularly. followed by electric and water, because legally they can stop your electric and water ALOT sooner then evicting you should you be in FINANCIAL hardship..

[Carlton Banks]

And in a financial meltdown that renders your prepper mentality necessary, hacking the electricity supply or finding a local freshwater source is going to be a whole lot easier (and widely practiced) than getting money to service companies. Arranging housing would be a little tougher. Anyway, you're boring, get that rest lol

[Cryptonitex]

Remember how financial crisis in Greece looked like? To sum it, all banks were closed, you could withdraw money only from ATM's and those were capped on 60eur daily.

If this happened globaly but on even more apocalyptic scale, how would it affect the Bitcoin world?

My guess is the price of BTC would reach the moon, BUT, how would we live with Bitcoins and without banks?
Currently we have cool services like Xapo which provides you a debit card so that you can withdraw your BTC into local currency. But bank that is supporting Xapo in this business would also be closed and i guess this debit card wouldn't be of any use if a major financial crisis occures.

I guess all BTC ATM's are relying entirely on banks?

If there would be no liquidity for the BTC, maybe gold would be a better option? You can always sell gold...

Insanely good question actually.

BitCoin is based upon fiat currency, so if the financial apocalypse comes, then my guess will be that the price of BitCoin will go down dramatically.

We need to get into the ideology that 1 BitCoin = 1 BitCoin
(I would do the "B" but I don't know how)

And you're correct. Even with services like the Xapo, and Shift Financial debit cards, they work just like an exchange. Sell BitCoin for Fiat. If Fiat is worthless, then so is BitCoin in a way.

[groll]

Remember how financial crisis in Greece looked like? To sum it, all banks were closed, you could withdraw money only from ATM's and those were capped on 60eur daily.

If this happened globaly but on even more apocalyptic scale, how would it affect the Bitcoin world?

My guess is the price of BTC would reach the moon, BUT, how would we live with Bitcoins and without banks?
Currently we have cool services like Xapo which provides you a debit card so that you can withdraw your BTC into local currency. But bank that is supporting Xapo in this business would also be closed and i guess this debit card wouldn't be of any use if a major financial crisis occures.

I guess all BTC ATM's are relying entirely on banks?

If there would be no liquidity for the BTC, maybe gold would be a better option? You can always sell gold...

When financial crisi occurs bitcoin will no longer have a monetary value since the demand will go down. If there are no demands it means there are no buyers then who will buy bitcoin. This will lead to the crash of bitcoin as there will be no more monetary value to it. Bitcoin will become just a digital number with no value at all. Bitcoin users hope that financial crisis worldwide will not happen.

[aioc]

I doubt that bitcoin will hit the moon I think it's the other way around,it will have a negative impact on Bitcoin people will stocks fiat more than bitcoin but I hope it will not happen and what will  be the cause of that global financial crisis..

[franky1]

I doubt that bitcoin will hit the moon I think it's the other way around,it will have a negative impact on Bitcoin people will stocks fiat more than bitcoin but I hope it will not happen and what will  be the cause of that global financial crisis..

if you can only withdraw $60 a day. and banks go into negative interest(they take money from you). people will not stock up on fiat.

they would SPEND IT

but they would not spend it on bitcoin(initially), because of course they have a limited daily spend. so the real life priorities like food come first.

my point is people will want to secure their real life from short term hunger, dehydration, transport and shelter in order of immediate priority

EG if it hit lets say.. november 5th..
on november 6th people would buy food hoping to get more than a days worth as they are unsure about tomorrow
on november 7th  people would buy food hoping to get more than a few days worth as they are unsure about next week and probably some car fuel
the following week people would buy food hoping to have atleast a couple weeks worth

later they would want to ensure they have electric and shelter because they happened to have been fully paid up in october so not an immediate worry in the initial days since "the event".

as for bitcoins price. it would not shoot up the very next day due to people buying bitcoin as a first action.. so dont expect mass adoption.. rember $60 daily spend limit hinders mass adoption..

as for the price of bitcoin.. this can change due to "market confidence", where the prices will change even without mass user adoption... you can reference the Zimbabwe dollar as a example
bitcoin "might" end up "showing" as being worth $10,000+.. but in reality that $10,000 may only buy one pint of milk (price up but VALUE down)

[BitcoinSupremo]

Remember how financial crisis in Greece looked like? To sum it, all banks were closed, you could withdraw money only from ATM's and those were capped on 60eur daily.

If this happened globaly but on even more apocalyptic scale, how would it affect the Bitcoin world?

My guess is the price of BTC would reach the moon, BUT, how would we live with Bitcoins and without banks?
Currently we have cool services like Xapo which provides you a debit card so that you can withdraw your BTC into local currency. But bank that is supporting Xapo in this business would also be closed and i guess this debit card wouldn't be of any use if a major financial crisis occures.

I guess all BTC ATM's are relying entirely on banks?

If there would be no liquidity for the BTC, maybe gold would be a better option? You can always sell gold...

When financial crisi occurs bitcoin will no longer have a monetary value since the demand will go down. If there are no demands it means there are no buyers then who will buy bitcoin. This will lead to the crash of bitcoin as there will be no more monetary value to it. Bitcoin will become just a digital number with no value at all. Bitcoin users hope that financial crisis worldwide will not happen.

To me is just the opposite. If a financial crisis hits the world markets in a few months from now the people holding bitcoins would be the one dictating the price as many persons will be after bitcoin after they knew how much it is worth. Even in the event of bank restricting ATM-s you can still exchange bitcoin via Western Union or Money Gram and receive it in cash which would by pass your bank daily limit. So in the situation of financial crisis I think bitcoin will gain and not lose.

[davis196]

Remember how financial crisis in Greece looked like? To sum it, all banks were closed, you could withdraw money only from ATM's and those were capped on 60eur daily.

If this happened globaly but on even more apocalyptic scale, how would it affect the Bitcoin world?

My guess is the price of BTC would reach the moon, BUT, how would we live with Bitcoins and without banks?
Currently we have cool services like Xapo which provides you a debit card so that you can withdraw your BTC into local currency. But bank that is supporting Xapo in this business would also be closed and i guess this debit card wouldn't be of any use if a major financial crisis occures.

I guess all BTC ATM's are relying entirely on banks?

If there would be no liquidity for the BTC, maybe gold would be a better option? You can always sell gold...

If a really MAJOR financial crysis hits the world, all the banks will bankrupt and people will loose all their

deposits.Without savings they couldn`t buy bitcoins,so the btc price will go down.

I`m optimistic and this won`t happen.

[Kakmakr]

We are moving to a scenario where fiat conversion would not be a necessity in this whole process. You only have that problem when you convert back to fiat. If you keep everything in Bitcoin, you would pay in Bitcoin and the receiver will do the same down the chain.

We rely on these payment processors too much in my opinion, and we should move to a scenario where Bitcoin is used as the primary currency, not a commodity to convert back to fiat. ^hmmmm^

[nururochac]

Remember how financial crisis in Greece looked like? To sum it, all banks were closed, you could withdraw money only from ATM's and those were capped on 60eur daily.

If this happened globaly but on even more apocalyptic scale, how would it affect the Bitcoin world?

My guess is the price of BTC would reach the moon, BUT, how would we live with Bitcoins and without banks?
Currently we have cool services like Xapo which provides you a debit card so that you can withdraw your BTC into local currency. But bank that is supporting Xapo in this business would also be closed and i guess this debit card wouldn't be of any use if a major financial crisis occures.

I guess all BTC ATM's are relying entirely on banks?

If there would be no liquidity for the BTC, maybe gold would be a better option? You can always sell gold...

It doesn't affect the bitcoin because once that happen, bitcoin will adopt to it's surrounding and it might have it's own value without relying to US dollar.

[bitcoinisfurture]

Yes it could hit and it has being so in the entire history of the global scenarios. So what is causing you of being afraid , it wont be new firstly and it wont be something unheard of.  OP - Also is your question pertaining to bitcoin or large as a whole?

[HeroCat]

Major worldwide financial crisis can not be, all markets are segmented. Financial crisis can be in one country, but not in all countries, it is not real. Even in one country financial crisis can be as very rare exception - all central banks in each country take care of such things preventing.

[Barnabe]

Major worldwide financial crisis can not be, all markets are segmented. Financial crisis can be in one country, but not in all countries, it is not real. Even in one country financial crisis can be as very rare exception - all central banks in each country take care of such things preventing.

You are really naive if you believe this ...
All banks are financially connected. The 2008 crisis was only due to the US and it affected all countries in the world. Central banks have some power, but they don't have infinite funds, so they cannot go against the market forever...

[metropolit]

The biggest issue is that Bitcoin is not spread enough so that we could live relying entirely on it as a currency.

For example you get a haircut and pay with Bitcoin. If the one that did haircut cannot buy food or pay for any other thing easily with Bitcoin he will have to get into the fiat. It's a long way till this widely spread happens (if ever), but till then i think it's good to have savings dispersion on 3 currencies, gold/fiat/bitcoin.

[helloeverybody]

In a  financial melt down i  don't think bitcoin has enough  adoption to actually be of any use,  anyone who may have wanted to use it as a  safe  haven probably won't be able to due to not even knowing what it is.  Maybe if  more people new and trusted in it then money would flow into it and price would rise by a  good amount. 

[serjent05]

In a  financial melt down i  don't think bitcoin has enough  adoption to actually be of any use,  anyone who may have wanted to use it as a  safe  haven probably won't be able to due to not even knowing what it is.  Maybe if  more people new and trusted in it then money would flow into it and price would rise by a  good amount. 

I agree with crisis in financial system, Bitcoin will be greatly affected too.  Unless BTC had already established it's foothold as independent currency and widely accepted in any places.  But if not, I think barter system will take place.  Item for an item.

[praprata]

It would be a tragic something but we know that it is not going to happen because we have not seen any signs from it.
It would be all over the news but what is now on the news are thing about isis.