Could Bitcoin become the cause of the next financial crisis?

[Isaak Brenner]

Could Bitcoin become the cause of the next financial crisis?

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[Harri Wolter]

WHEN — NOT COULD!

The question should be WHEN?

The demand for cash on all global markets is constantly growing.
Our current economy is based on creditism. [1] We need to keep printing dollars... if we stop printing dollars the economy falls into recession.
If we continue to print dollars, history proves that the currency will eventually devaluate.

[Zebra.Guy]

It is a very interesting question that you pose. They say, that the true insight comes from the ability to pose questions, not from giving answers

So it really made me think. You may compare bitcoin to gold, and that comparison is sound in a lot of ways (limited supply, store of value, etc.) and unsound in others (bitcoin is much more abstract, you cannot weigh it in you hand, you can't make a nice ring out of it), but for the sake of this discussion let us make that comparison and go forward.

Well, gold has never been the reason for crisis. Rather, gold was the escape from crisis and a way for one's wealth to be preserved. If you were smart enough to have gold, then you were kind of immune to the price hyperinflation and misery all around you, and after the crisis is done you emerged even stronger than before. But as far as my knowledge goes, gold was never the cause behind the crisis.

Bitcoin is something like that too. I don't think that it with its price fluctuations can cause problems. Rather, the price fluctuation and its rapid growth is an effect of general instability in fiat pseudo-currences and debt fueled economies. I think that it offers a way to escape and preserve your capital. This is maybe why its value should not be denominated in fiat currencies, rather it should be considered as inherently valuable.

[dewi91]

Could Bitcoin become the cause of the next financial crisis?

bitcoin couldn't become cause of financial crisis.. many factors could be the cause of the economic crisis but it is not related to bitcoin, for many countries the financial crisis usually can be caused by dependence on foreign debt and uncontrolled inflation.

[casternetwork]

Could Bitcoin become the cause of the next financial crisis?

In my opinion, Bitcoin may become a threat to many weak economies, which is unavoidable when there are many places where there is an early economic boom in which they face a crisis of fluctuations. Bitcoin is currently on the banned list in many countries

[Yurkov]

In my opinion, bitcoin can't be the cause of the crisis. It was created precisely to become independent from traditional finances. Bitcoin has no impact on the economies of countries, but only on improving the finances of individual people.

[sabine80]

i dont think this is possible, but i don't know. maybe someone will enlighten us and write more to this question. i found this is a good question and i want an answer too.

[ChickenDuck]

Yes, but only when BTC is 1M$.

Could Bitcoin become the cause of the next financial crisis?

[cryptokingmaker]

Bitcoin is saving financial crisis and bitcoin is real price and real value for money so it is saving the world

[ashlyvash00]

Could Bitcoin become the cause of the next financial crisis?

 Will i think bitcoin will not gonna causing the financial crisis instead he help people to be rich.its so ridiculous that bitcoin is the cause of financial. I think they just spreading a wrong news so you will be panic selling. Many people are now rich because of bitcoin.

[SanjeewaCrypto]

There is possibility that it may become the next "Wall Street".

[elvinjamon]

Could Bitcoin become the cause of the next financial crisis?

Bitcoin can't possibly become the cause of financial crisis from one country to another because bitcoin is decentralized and we know that other country doesn't include bitcoin as a contributor for their economy.  Also,  it is produced to mined to make a lot of information regarding crypto that eventually will make every bitcoin user gain a specific amount of money or invest with bitcoin

[felicanoma]

Can not, because bitcoin is not related to it and the different paths that make it unrelated to the financial crisis.
bitcoin is different in the world so even if your country is in crisis, bitcoin does not affect what is happening in your country.

[mezzaluna]

Could Bitcoin become the cause of the next financial crisis?

I say yes, Bitcoin can cause the next financial crisis. Why?

Not only that the amount of money you invest is unregulated, but also the exchanges.

Previous financial crisis like the 2008 recession by the new mortgage system is an example.In the old system, when a homeowner paid his/her mortgage every month, the money went to his/her local lender. Since mortgages took decades to repay, lenders were careful.  The new system is more complicated and it has 4 players. Homeowner, lender, investment bank, investor. In this system, lenders can grant any kind of mortgage, because they are not getting paid anymore by the home buyers, so they don't care.
Investment banks don't care either. They get commissions on each product they can sell to investors. The more mortgages, the more products. The more products, the more money to bankers. What happened? So many loans were given to people who could not repay them and with so many billions invested in this financial instrument that was based on house mortgages, the effect was catastrophic.



(c)https://www.quora.com/Could-Bitcoin-become-the-cause-of-the-next-financial-crisis

Bitcoin is so much worst. As i have said. Not only the the market is not regulated, but also the exchanges. But if you ask if bitcoin will pose a financial crisis now? NO. Everyone knows that bitcoin is volatile and it is unlikely to receive a monstrous amount of money like in the housing market. Bitcoin have received so much speculation, but as you see, as of now, bitcoin or any other altcoin is not that bad of an investment. It may be a bubble or a stepping stone. It may cause a crisis, but as of now, it will never be much worse than the 2008 recession.

[faatipoke]

we may be close to such a financial global economic crysis. But bitcoin is not the cause of this, on the contrary bitcoin is the result of the current unbalanced financial system with so many problems in it. I do think bitcoin and cryptocurrencies are threat for banking system and will affect in the end, this process may cause a crysis eventually. We will wait and see what happens

[jrrsparkles]

I don't think it will cause financial crisis because the price of bitcoin keeps increasing in long term even the price is too volatile at short terms.But people keep saying the burst will occur soon but this is the crash which are caused by many rumors now the price keeps increasing.

[Qartersa]

I don't think it will cause financial crisis because the price of bitcoin keeps increasing in long term even the price is too volatile at short terms.But people keep saying the burst will occur soon but this is the crash which are caused by many rumors now the price keeps increasing.

THERE IS A POSSIBILITY THAT IT CAN CAUSE FINANCIAL CRISIS IF MAJORITY OF PEOPLE WILL USE BITCOIN INSTEAD OF CASH. That way, there will be more demand of Bitcoin instead of cash. If it were not that way, I do not think the existence of Bitcoin per se may cause financial crisis. Bitcoin, as of writing, still needs so much development before it can even be at par with cash. We have to consider the transactions, fees, price volatility and many others. As you can see now, more and more people, not to mention big companies, are banning Bitcoin advertisements. This, alone, is one proof that Bitcoin is not ready to take on more users and vice versa. I still think the only way to help improve Bitcoin is to create a system that works for all. Having said that, while there is a possibility for Bitcoin to cause financial crisis, I do not think it is anytime sooner.

[xIIImaL]

I don't think it will cause financial crisis because the price of bitcoin keeps increasing in long term even the price is too volatile at short terms.But people keep saying the burst will occur soon but this is the crash which are caused by many rumors now the price keeps increasing.

Hey guys Banks and other financial institutions are centralized one but the bitcoin and other crypto currencies are decentralized platform I do not know OP have the brain or not to discuss this topic. Satoshi creates this medium to avoid the financial crisis and people use the cryptos independently without the intervention of others.
So understand financial crisis and bitcoin price changes does not have any relevant problems.

[GreenBits]

WHEN — NOT COULD!

The question should be WHEN?

The demand for cash on all global markets is constantly growing.
Our current economy is based on creditism. [1] We need to keep printing dollars... if we stop printing dollars the economy falls into recession.
If we continue to print dollars, history proves that the currency will eventually devaluate.

This is more the issues of fiat, rather than Bitcoin. If Bitcoin were to cause a financial crisis, it would be limited to a very small community of actors. The total level of adoption should indicate that while we have came a good ways, we are still at single digits adoption rates. So if Bitcoin went to say, 1000 bucks tonight, while it would indeed be a bloodbath, it is limited to a roughly 130 billion dollar one. That's really not alot of money, in the grand scheme of things.

[fanbeila]

Could Bitcoin become the cause of the next financial crisis?

Bitcoin could not become the cause for such crisis.It depends on many other factors.Bitcoin is known to only a smaller percentage of people and its even used actively as a currency very less.So,its illogical to even think like that.

Bit if such a crisis happens due to some external factors,then we would have to see people's reactions whether they just turn as usual towards gold or this time towards bitcoin.

[clubchain]

I think this is impossible, bitcoin is not a national financial currency, it is not the ability to mobilize the global economic system.

[bjjobg55206]

I think this is impossible, bitcoin is not a national financial currency, it is not the ability to mobilize the global economic system.

I think maybe the speculative activities of all kinds of bitcoin will always exist, as long as the establishment of international consensus and governance mechanisms, it is possible to limit its negative impact to a controlled range.

[stripykitteh]

Could Bitcoin become the cause of the next financial crisis?

Bitcoin is going to make electronic and Biometric payments more popular whether you like it or not.

[Emitdama]

Can not, because bitcoin is not related to it and the different paths that make it unrelated to the financial crisis.
bitcoin is different in the world so even if your country is in crisis, bitcoin does not affect what is happening in your country.

With even the most realistic and fact based approach, you cannot make any connection between financial crisis of your state with bitcoin or more precisely the decrease in the values of bitcoin. Bitcoin is a virtual currency and if it is not legal in your state, then the government has no right to blame bitcoin legally. Bitcoin has so far known for improving the economy of a state by providing people with enough capital to start businesses.

[Subkarnas]

I don't think that cryptos can be the cause of the next financial crisis. There are no big companies that depend on crypto or express their value in it. If by some chance (but it won't) cryptos fail, there is not going to be any workforce letdown except for people that work for cryto exchange sites. Rest of the companies have a solid product that they use encouraging crypto. They can easily change their handling to fiat. So overall there is no crypto threat to the world except for people that heavily invested in it.

[Walrus1]

Not yet. The market cap isn't big enough. Even with all of crypto. The stock market recently lost 2 trillion dollars in one day during the slide, it hurts but a couple of trillion can be absorbed. We can see the government, at this time, is not concerned with crypto having a negative impact on the economy at large if it were to crash. If the, the recent meeting between the fed and the senate would have had a much different tone. The fed has a group who devotes their time looking for bubbles that could effect the economy. In her last meeting Janet yellen stated a crypto crash would pose no problem to the economy but would hurt a lot of people. If crypto ever did get so big it posed a threat to the economy the government will be all over it. Actually as soon as they asses it is getting to the point where it's close to creating havoc during a crash expect the fed to step in. Regulation can have benefits but heavy handed regulation can have a dramatic negative impact. That is why we must pay attention to the whole story, not just the daily ups and downs

[ace09]

I hope that it would not be. Because I really love Bitcoin. I enjoy when I am in the world of crypto currency. Why? Because even I am a student, I am already earning to help my parent for my financial need and also on the other hand, I get more interesting knowledge here. So, I hope this will not become the next crisis we are facing, because I believe that Bitcoin will rise again.

[Beerwizzard]

Well, gold has never been the reason for crisis. Rather, gold was the escape from crisis and a way for one's wealth to be preserved. If you were smart enough to have gold, then you were kind of immune to the price hyperinflation and misery all around you, and after the crisis is done you emerged even stronger than before. But as far as my knowledge goes, gold was never the cause behind the crisis.

Gold is not used as a payment method. It is impoprtant to point out that it is impossible to start a crisis just because one single factor (for example US government could be partly blamed for the 2008 crisis). Similar thing should happen with crypto. For now I can imagine a scenario where Bitcoin is getting more popular while banks and governments are not going to integrate it into their systems which will lead to disbalance and crisis in some spheres. Hovewer it is less likely to happen in the next decade and there is much more problems in traditional economy of major countries that can cause crisis.

[kazakova]

In my opinion, bitcoin can't be the cause of the crisis. It was created precisely to become independent from traditional finances. Bitcoin has no impact on the economies of countries, but only on improving the finances of individual people.

Bitcoin will affect individuals only and in some countries governments may have to support such people. It will not cause any financial crisis though in any country.

[jpespa]

I do not think that bitcoin will become the cause of financial crisis. Nothing can replace the traditional fiat currency that we have and besides even if cryptocurrency is well-know now by the world many people probably ignore this since what they believe is that these digital currency are possibly scam so they will not adapt to it.

[sashulya7979]

Undoubtedly it will be a crisis if the enterprises do not adapt for the Blockchein technology, as they will experience a shortage of funds and an outflow of capital, and this will lead to bankruptcy! so either you are up to date or you can continue to resist and say that bitcoin is a bubble!)

[LieTOme]

I think this can happen if the country no longer needs and many people still hope. people will be stuck with a high bitcoin price and immediately worthless the possibility of a country state could be a loss with the presence of bitcoin

[nicolesalv]

Could Bitcoin become the cause of the next financial crisis?

bitcoin couldn't become cause of financial crisis.. many factors could be the cause of the economic crisis but it is not related to bitcoin, for many countries the financial crisis usually can be caused by dependence on foreign debt and uncontrolled inflation.

True, even before that there were no bitcoins .some.of the countries are already experiencing financial crisis. Bitcoin can't be the cause of financial crisis but rather it helps people of rhe country to earn  to spend for family in which I think it van lessen criminality too as peoaple sometimes is force to do bad things just to feed their gamily. Financial crisis can also be cause of some corrupt government officials.

[gantez]

I don't see it as a crisis but confusion. I mean real confusion. Bitcoin would cause a critical financial change from the norm. The dominance of fiat money is being threatened lately because of the scarce and demand for money and crash in stock.

[Walrus1]

Well, gold has never been the reason for crisis. Rather, gold was the escape from crisis and a way for one's wealth to be preserved. If you were smart enough to have gold, then you were kind of immune to the price hyperinflation and misery all around you, and after the crisis is done you emerged even stronger than before. But as far as my knowledge goes, gold was never the cause behind the crisis.

Gold is not used as a payment method. It is impoprtant to point out that it is impossible to start a crisis just because one single factor (for example US government could be partly blamed for the 2008 crisis). Similar thing should happen with crypto. For now I can imagine a scenario where Bitcoin is getting more popular while banks and governments are not going to integrate it into their systems which will lead to disbalance and crisis in some spheres. Hovewer it is less likely to happen in the next decade and there is much more problems in traditional economy of major countries that can cause crisis.

gold is a payment system and one thing can cause a crisis i.e. Subprime loans really caused the poppy to hit the fan

[antagonist]

Could Bitcoin become the cause of the next financial crisis?

i think i will cause financial crisis for person who want to remove bitcoin holding from wallet of mine  this is only thing that cause big world financial crisis relate with bitcoin
bitcoin for now too small to create issue like this in world so i do not believe it that bitcoin will create crisis like this to collapse bank for us in this way that you have said it , maybe i say wrong thing if it happen i think will be big big interesting thing for alls of us here to see it

[nazaididuan1]

The birth of bitcoin is the response to the government's indiscriminate monetary behavior.

The amount of bitcoin is too small to have much impact on the economy, like mosquito bites.