Financial collapse means Bitcoin boom?

[iamTom123]

New data from investing.com suggests, however, that it’s not just Venezuelan citizens that are turning to cryptocurrencies as fiat currencies collapse. The investment portal researched the top ten countries accessing cryptocurrency across its platform and noticed an interesting trend.

Citizens of countries with failing currencies in every part of the globe seem to be turning to crypto for investment and wealth protection, even amid the chaotic struggles of fiat currencies.

Venezuela - 36%, Colombia - 18%, Argentina - 15%, Belarus - 13%, Ukraine - 11%, Brazil - 11%, Germany - 10%, UK - 8%, Egypt - 7%, Russia - 6%. The five countries with the worst-performing currencies of 2017 are Venezuela, Argentina, Belarus, UK, and Egypt, and all of them made it onto the top ten list.

The huge number of investors turning to cryptocurrencies in these fiscally challenged countries may be a major factor driving the exponential rise of Bitcoin and other cryptocurrencies over the past month.

Even as these struggling economies fight to regain stability of their fiat currencies, the prices of digital currencies have been moving higher. The influx of huge amounts of cash from depressed regions into cryptos may well be the cause of the boom. While the massive increase in price may retract over time, the mainstream acceptance of cryptocurrencies will only drive demand further.

Taken from here...

There are people who are wondering what can happen to Bitcoin if there would be economic and political chaos? Will it mean that Bitcoin will surge in price or will it withered and be likewise chaotic? I think what is happening in Venezuela right now is just a foretaste of what can happen when an economy can go down to the bridge...Bitcoin can come to the rescue and can be a source of some stability and access to the outside world.

While, of course, we are not wishing any country's economy to go down the floor, having some Bitcoin and getting involved in Bitcoin can be an insurance just in case something like a Venezuela will happen to our country. This has evolved to be one of the many functions of Bitcoin as we see it.

[alyssa85]

Well the thing that made bitcoin mainstream in 2013 was the Cyprus crisis, where the EU forced a bail-in where customers savings were seized to bail out teh banks. Even businesses which had their payroll money in their current account to do their monthly salary run, found their money being confiscated.

The EU has now made bail-in rules the norm, and the customers of an Italian bank were also wiped out. Naturally that makes people want to hold their money in a form the govt can't steal.

[DaMut]

it should be that way right ?
because of that data i got some clues why would chinese doing this move lately,
i believe they're preparing their country to face it using cryptocurrency.
why would they banned ICOs when they can directly banning Bitcoin exchange and trade in their country.
from that point i can see something big will happen in our real life or world.
and most people will doing something to secure their assets and money to face this problem in the future.

but sadly,we are facing a hardfork in a few weeks later on,
if not we should see a big movement from it.

[ekoice]

Definitely,if an economic crisis happens in the world,scenario would be the same as in venezuela.Erarlier,when such crisis happened,people rushed towards gold to save their money safely as they had no other choice than that.Even in india,after banning of high value notes,people have lost their faith in the national currency and most of them were turning towards bitcoin like investments.Bitcoin being a secure as well as a high return giving investment,has now become the ultimate choice of people.Bitcoin even though its a decentralized currency,not backed by any government has managed to gain the trust of people all over the world.Its not an easy task to achieve such a trust.Definitely,bitcoin would be a rescue in such situations.

[warrior333]

The early inhabitants of all the countries in which the currency was unstable kept their savings in dollars. The banking system in these States is also not reliable so the economies of these countries are suffocating from a lack of investment, despite the fact that the people are kept in the billions. Now they pay attention to bitcoin and this means that the price will be for a very long time to grow.

[manselr]

Well the thing that made bitcoin mainstream in 2013 was the Cyprus crisis, where the EU forced a bail-in where customers savings were seized to bail out teh banks. Even businesses which had their payroll money in their current account to do their monthly salary run, found their money being confiscated.

The EU has now made bail-in rules the norm, and the customers of an Italian bank were also wiped out. Naturally that makes people want to hold their money in a form the govt can't steal.

Cyprus was a nice sign of the neutral position of Bitcoin being an ideal safe haven above gold. Gold has been underperforming and not rising when it was supposed to go up during times of uncertainty. Only recently gold has been going up. Goldbugs (usually the ones that sell gold) are now saying that gold is going into an all time high and crypto will go down. Honestly I doubt it. They are just trying to sell you their gold.

Bitcoin continues to shine and prove all the haters wrong. We are going to be at $5000 soon. There will always be reasons for Bitcoin to go up. It's the wonders of being a global, decentralized, neutral asset.

[LoyceV]

The data doesn't add up: Germany -10%, UK -8%, but only UK is in the Top five worst performing countries. I'm curious to know where the -10% comes from: last year? And how is it measured: Germany has euro, just like many countries. It's not Germany's fault BTW, it's Southern Europe that pushes down the value.

Back to speculation: No doubt it causes some people to buy Bitcoin. Only a fraction of the money flowing into stocks, bonds and precious metals is enough to sharply increase the price per Bitcoin.

Well the thing that made bitcoin mainstream in 2013 was the Cyprus crisis, where the EU forced a bail-in where customers savings were seized to bail out teh banks. Even businesses which had their payroll money in their current account to do their monthly salary run, found their money being confiscated.

The EU has now made bail-in rules the norm, and the customers of an Italian bank were also wiped out. Naturally that makes people want to hold their money in a form the govt can't steal.

Cyprus was a small experiment. It turned out people didn't like it. I don't think it will happen again, the bail-in was too obvious.
Instead, they switched to Quantitative easing (QE):

If central banks increase the money supply too quickly, it can cause inflation.

It's a genius move actually: stock prices go up, the value of money goes down, and nobody can do anything about it.

[Torque]

Hyperinflation

Coming to countries near you first. Then your country is next on the list. None will be spared.

Buy Bitcoin if you want to live.

[UnDerDoG81]

Possible. I am heavily invested in Bitcoin but would prefer gold if shit will go crazy. Now that the US dictatorship comes to an end, we could see a big war coming soon. Bitcoin would be worthless on an destroyed planet. With Gold you could at least buy some bread and conterminated water.

[Don Pedro Dinero]

Yes, it does mean it, but not the other way around.

When have seen it in the past, with the examples mentioned before and we will see more examples like those in the future. However, there can be bitcoin booming in other countries without being a financial collapse. Countries like Estonia or South Korea are very bitcoin-friendly but that has more to do with them being also tech-friendly. General adoption of new technologies by the population and the disappearance of physical cash play in important role.

[YuginKadoya]

Well the thing that made bitcoin mainstream in 2013 was the Cyprus crisis, where the EU forced a bail-in where customers savings were seized to bail out teh banks. Even businesses which had their payroll money in their current account to do their monthly salary run, found their money being confiscated.

The EU has now made bail-in rules the norm, and the customers of an Italian bank were also wiped out. Naturally that makes people want to hold their money in a form the govt can't steal.

Cyprus was a nice sign of the neutral position of Bitcoin being an ideal safe haven above gold. Gold has been underperforming and not rising when it was supposed to go up during times of uncertainty. Only recently gold has been going up. Goldbugs (usually the ones that sell gold) are now saying that gold is going into an all time high and crypto will go down. Honestly I doubt it. They are just trying to sell you their gold.

Bitcoin continues to shine and prove all the haters wrong. We are going to be at $5000 soon. There will always be reasons for Bitcoin to go up. It's the wonders of being a global, decentralized, neutral asset.

Back then I am also fond with gold because of it's value and really want to invest in buying golden jewelry then when I was needing money I would just went to a pawn shop to lent money by leaving Gold jewelry as collateral, that was the value of gold back then and you can get money at a high price, but yes I think bitcoin is a great investment right now and it keeps on increasing it's value but I think when fiat would go down Cryptocurrency is here to stay.

[AjithBtc]

Financial collapse has been observed over the years on different platforms. Even few European countries have fallen into financial crisis. Those financial collapses were found even before the days of bitcoin existence. On such assurance I never think that bitcoin makes the collapse to the financial system of countries.

[manselr]

Well the thing that made bitcoin mainstream in 2013 was the Cyprus crisis, where the EU forced a bail-in where customers savings were seized to bail out teh banks. Even businesses which had their payroll money in their current account to do their monthly salary run, found their money being confiscated.

The EU has now made bail-in rules the norm, and the customers of an Italian bank were also wiped out. Naturally that makes people want to hold their money in a form the govt can't steal.

Cyprus was a nice sign of the neutral position of Bitcoin being an ideal safe haven above gold. Gold has been underperforming and not rising when it was supposed to go up during times of uncertainty. Only recently gold has been going up. Goldbugs (usually the ones that sell gold) are now saying that gold is going into an all time high and crypto will go down. Honestly I doubt it. They are just trying to sell you their gold.

Bitcoin continues to shine and prove all the haters wrong. We are going to be at $5000 soon. There will always be reasons for Bitcoin to go up. It's the wonders of being a global, decentralized, neutral asset.

Back then I am also fond with gold because of it's value and really want to invest in buying golden jewelry then when I was needing money I would just went to a pawn shop to lent money by leaving Gold jewelry as collateral, that was the value of gold back then and you can get money at a high price, but yes I think bitcoin is a great investment right now and it keeps on increasing it's value but I think when fiat would go down Cryptocurrency is here to stay.

I think gold is nonsense at this point. You can buy and hold as much gold as you want... so what? not only the price doesn't outperform bitcoin, but the fact that it is literally impossible to cross a border with your wealth renders gold a pretty useless edge against your government turning against you, or any other reason you would need to have a neutral asset to defend against countries screwing up your wealth.

I can't find anything that beats bitcoin to be honest.

[kwukduck]

Somebody explain to me why a system that can't even handle low volumes like we have now would boom?

Something that solves a problem can boom. Bitcoin can't even handle current transaction volume, which is like 0.00001% of global transactions.

[phr0stbyt3]

I feel it might be the opposite if the financial world crashes inflation rate would reach the sky and in order to fight with that people will have to sell their bitcoins otherwise they won't have any option left on to deal with this crises. The other way people buying bitcoin during a collapse would increase the price

[mobnepal]

Financial collapse might have good positive effect on bitcoin in terms of both fiat value and overall understanding of normal people towards bitcoin and crypto related investment.

Bitcoin and cryptos are best way to hedge against potential financial loss during huge financial crisis but we might have to wait to see real affect of any financial crisis on bitcoin.

[kryptqnick]

I didn't expect to see my Ukraine in the top list of countries turning to cryptocurrencies for secure investment of money. Bitcoin, however, cannot offer stability, being itself even more volatile than almost any fiat. Even though it can rescue one's investments and even make them bigger, unfortunately, btc still can't be used as daily means of payment, because the price is changing too fast, transactions are slow and mostly expensive. Especially for countries like Ukraine where for 1 dollar you can buy yourself a bottle of milk, or 1 pack of rice.

[Basmic]

I didn't expect to see my Ukraine in the top list of countries turning to cryptocurrencies for secure investment of money. Bitcoin, however, cannot offer stability, being itself even more volatile than almost any fiat. Even though it can rescue one's investments and even make them bigger, unfortunately, btc still can't be used as daily means of payment, because the price is changing too fast, transactions are slow and mostly expensive. Especially for countries like Ukraine where for 1 dollar you can buy yourself a bottle of milk, or 1 pack of rice.

To get to such a rating is not good. This means that Ukraine's poor economic situation. People don't trust their own government and currency so looking for an alternative. The increase in the number of bitcoin users will come from poorer countries because poverty causes people to seek additional sources of income.

[aardvark15]

Financial collapse might have good positive effect on bitcoin in terms of both fiat value and overall understanding of normal people towards bitcoin and crypto related investment.

Bitcoin and cryptos are best way to hedge against potential financial loss during huge financial crisis but we might have to wait to see real affect of any financial crisis on bitcoin.

One thing we know for sure is that inflation goes very high, people will store their money in something other than that country's currency. They will look to either spend it all on things they need or store it in gold, cryptocurrencies, or another country's currency.

Other than an inflation scenario, it's hard to say what people will do in another financial crisis. It also depends on how a particular government writes its laws concerning cryptocurrencies. They may try to heavily regulate them to keep people from shifting their money them. Overall though, I think the major cryptocurrencies will survive a financial crises because it's global rather than tied to a government.

[surix]

BTC's supply is to imitate precious metal, so as all precious metals, one of its function is safe heaven. So I will not be surprised to see people getting BTC when the local currency doesn't work well.