Financial Crisis Will Come

[Lorna111]

Merited for good observance of what is happening with the world.  
Love the last part.
Mutual funds, insurances and retirement funds. All of this had a larger risk even before.
We do not see it on news. That had been a question for me for a long time.
I have seen a lot of old people and their stories about how they went down just because of this.

First they say bitcoin is not real because it doesnt have a physical attribute. Why not go with gold then? They say it is too expensive?
So where will you go? Investment scams? HYIP? Pyramids?
All of those got no physical appearances also. It is just the owner who will profit from all the work of inviting more people.

Stop it. Go for the real one. Bitcoin is. Just look at how much it rise after a year. Then you can go withdraw if you want.

PS: Please. Not the banks. 

As discussed on the posted topic, we've seen the history in the market trading, where the time line in the past,Financial crisis had happened, the entry of Bitcoin or the crypto currency in the trading market transaction changed the out look of the Trading Market.  Yes, everyone is saying that, a possible financial trading will happened soon or later. But, i am just wondering what  will happened on the crypto currency or on Bitcoin? One thing i know, crypto is Decentralized digital system of transaction, and only a fraction of Bitcoin users affect or contribute to the supply and demand on the economy.

[Betwrong]

In 2 to 3 years time another crisis will come and at that time the crypto currency will flourish again with new all time high prices.

I think if fiat currencies will fall in value due to the upcoming crisis you predict, then high prices for crypto will be unavoidable, but that's not what we expect from crypto in general. What we expect is that the price of the most established coins in USD will rise while the purchasing power of USD will remain the same. Only this process we can call rising in the real sense of the word. Otherwise it will be just monetary depreciation of fiat currencies.

[abayan]

In 2 to 3 years time another crisis will come and at that time the crypto currency will flourish again with new all time high prices.

I think if fiat currencies will fall in value due to the upcoming crisis you predict, then high prices for crypto will be unavoidable, but that's not what we expect from crypto in general. What we expect is that the price of the most established coins in USD will rise while the purchasing power of USD will remain the same. Only this process we can call rising in the real sense of the word. Otherwise it will be just monetary depreciation of fiat currencies.

What would it be if usd rate decrease and started to have no value how bitcoin and other crypto will stand itself? I have an idea that it will remain based in crypto dollar rate in online but having without a fiat.
How will other crypto will rise by purchasing power of usd if it is not available in fiat?

[neliawesome]

Its possible that there will be financial crisis but I know we can overcome those challenges and can still hold and stand.We just need to prepare everything to overcome all struggles.

[BobK71]

It seems a far more likely explanation is that people expect value to be able to hold perfectly forever and it doesn't. Money is a representation of the goods/services created and people take excess value and "save" it. The problem is that you cannot effectively save value because value erodes over time as a natural consequence of consumption and age. If you grow a bushel of apples and sell it for $50, and spend $40 and save $10 for the future, you're counting on $10 of value to be there in the future. The problem is that all the product that created that value is gone within a couple months at most. The apples are either consumed or spoiled. Now there's $10 of excess value in the world that has no corresponding real world equivalent. The loss of fiat value over time is a natural consequence of the fact that value cannot be stored indefinitely in this universe.

You see this same type of loss of value when debt is created and counted as both an asset in the future and consumed in the present. If you borrow money to start a business and your business is profitable, the value you created in the business is used to pay back the loan and the lender is richer and the economy is richer for having created new value. If the debtor defaults, the "value" of the future asset disappears for the lender and money disappears from the system as a logical consequence of the failure. In this same way, financial crises are like pressure valves that zap value out of existence when the amount of expected value gets grossly out of line with the amount of consumable value in the present. You cannot store more value than what can be consumed immediately in the present. It's a physical impossibility. Gold doesn't solve this and Bitcoin doesn't solve this. All they do is behave slightly differently because there's a mass consensus that they should, which is nothing more than a shared delusion. But as both gold and the dollar are nothing more than a confidence game, it works.

As I wrote before, the financial inflation created by the state-bank elites are the major factor driving 'the amount of expected value gets grossly out of line with the amount of consumable value in the present' as you put it.

Sure, storing value for future consumption is always going to be subject to uncertainty, as you point out, but the artificial elite-driven asset inflation is the major part of our experienced uncertainty.

The existence of gold and Bitcoin, and the public's belief in them,to the extent they do believe in them, is a barrier to this asset inflation.  To this end, these assets are a social good.  No, they don't solve the problem of how to store value totally securely for the future, but they solve the largest part of the problem we have.

[netil]

I do not really understand where the previous crisis went. With the collapse of the mortgage market, the American financial elite has not figured it out. A huge number of loans and left nothing obecpecheno. it is time to recognize that such crisis phenomena are not accidental but systemic. The problem is in the very form of the economic structure in which everything is built around one national currency with unlimited emissions.

[BobK71]

It's almost too good to be a coincident that as soon as the world started using fiat based currency, or currency that was able to be issued on fractional reserves, financial crises around the world started happening at a much faster pace.

That's simply not true. Before WWI there was a never ending succession of economic crises in industrial countries like US, Germany, England, etc which were all on gold standard then. It can be said that the war itself was an inevitable outcome of this economic dead end.

The gold standard period was not free of crises (as the OP states,) but the 'fiat money period' since 1971 has been the most financially unstable period in the modern age, with the possible exception of the period before and during the Great Depression.

The gold standard was not essentially different from the 'fiat money' system we have today, if you think about it.  But the rate of elite-driven financial inflation did seem to be slower in those days.

What we consider as economic crisis today has little in common with what happened in that day and age, with thousands of people literally starving to death in the streets.

IMO the reason why the effects of financial crisis were worse in those days was that the elites could get away with it.  In 1931 the Fed just did nothing and watched banks fail across the world (including the US) and the economy dive into the worst part of the Great Depression.  Ben Bernanke 'apologized for the mistake,' but the objective fact was that the massive deflation reduced the degree to which the dollar had to be devalued against gold, and helped support the system in more ways than one.

The only difference today is, democracy is stronger, and the elites can't go that far any more.  The election of nationalist populists across Europe and America just now shows that people will not take pain lying down, whether or not they understand what is really the problem.

This is why I'm personally invested in bitcoin a lot. I believe that it is able to provide everybody with a hedge against any financial crisis events that results in the bubble of the fiat system bursting. It may seem too distant right now to prepare for, but who expected Zimbabwe, Venezuela, Argentina, Greece etc. to have such huge financial crises, until it actually happened or it was very close to happening?

If the shit hits the fan in earnest throughout the world, cryptocurrencies will be worth next to nothing. People simply don't know what real crisis and economic meltdown means in practice as they never saw the one (in developed countries, at least).

When the shit hits the fan, most likely cryptos will be worth a lot more.  The reason is that, one way or another, the elites will have to devalue state money against non-state money to inflate away the debt, plus keep life more or less comfortable, plus keep their state money stable, at the same time.

[integral007]

Really thinking here

[zakariajaki]

this is a solid and complete information that I have read and become a topic of conversation, I admit many good journey of history is also a record of world economic journey that we can develop and we can analysis as data support an economic success, and world of crypto including bitcoin in it become wrong one of the world's economic appeal from the technological era, I strongly agree that cryto or bitcoin will become one of the tools of transactions and even future forms of investment that are legally valid by the recognition of the world, and support one of the economic forces individually, may be useful and success for all of us

[biboy]

this is a solid and complete information that I have read and become a topic of conversation, I admit many good journey of history is also a record of world economic journey that we can develop and we can analysis as data support an economic success, and world of crypto including bitcoin in it become wrong one of the world's economic appeal from the technological era, I strongly agree that cryto or bitcoin will become one of the tools of transactions and even future forms of investment that are legally valid by the recognition of the world, and support one of the economic forces individually, may be useful and success for all of us

I agree with that as well, there was already prediction that it will happen in the future wherein each country will ask for the help of cryptocurrency for them to go up with the crisis that they are encountering and I can see very clear that it could really possibly happen in the next coming decades.

[Reid]

Merited for good observance of what is happening with the world. 

You can read that stuff at ZeroHedge nonstop 24/7. They have been crying wolf for a decade or so. Or how long have they really been online? Now and then, some random guy springs up here telling some part of their daily repertoire, and a lot of people are kind of surprised and praising them for "good observation of what is happening with the world". Dude, if you like that sort of things ("doom and gloom"), you should definitely visit ZeroHedge, they will fill you up and over.

Though I'm not sure if they like crypto very much.

Thanks for that and I might visit that if I have the time. Maybe I am a pessimist but that is according to my own observance only.
I dont really care about how the others will think after I shouted what I want.

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As discussed on the posted topic, we've seen the history in the market trading, where the time line in the past,Financial crisis had happened, the entry of Bitcoin or the crypto currency in the trading market transaction changed the out look of the Trading Market.  Yes, everyone is saying that, a possible financial trading will happened soon or later. But, i am just wondering what  will happened on the crypto currency or on Bitcoin? One thing i know, crypto is Decentralized digital system of transaction, and only a fraction of Bitcoin users affect or contribute to the supply and demand on the economy.

Small or a large group it might make a change.
I remember drinking with colleagues and they have news that I am on crypto currency. I mean they know I am making some money out of it.
Suddenly they start asking about this and that and some more.
They didn't say they want "in" but the fact that I have just implanted a seed to their brains for them to think about is a big deal for me.

With this, it could be a huge change.
Trading Market. I just heard about that since I joined supporting bitcoin. But before I dont even have an idea.
See that? It is change and crypto currency will do more like that to different people.

[tee-rex]

And what makes you think that you can't make final settlements with real gold?

I probably should have stated that it were internet transactions and not actual face-to-face transactions.

Yes, I understood what you meant to say. It is the word "final" that makes all the difference here. You know it's a difference that makes the difference. The point is that you don't have to settle accounts with everyone you transact with, I mean in physical gold. We can easily make cashless, or goldless transactions without having to actually move gold anywhere until we go for a final settlement. For example, I owe you an ounce of gold, you owe to Alice, and Alice owes to me, so no one owes anything to anyone and no gold is hurt in the process. The main issue is that, though, I should always have that ounce of gold in my vault until my debt is fully extinguished but it is another question.

[BobK71]

Financial crisis will always be here, though not in all parts of the world but at some point, you will still see poor and struggling countries, as long there is a corrupt system this will never change, I am not against any religion or thpe of government, but if you take a look at the golds of vatican, buddhists, once they sell it all, you can help a dying nation, if we check on Venezuela, the country used to be rich back then, but now it is falling apart, however its neighboring countries aren't,  I think this is what will happen once every nation experience financial crisis at the same time, thos who are in power, politically, socially and religiously will be the one that will survive financil crisis, and the rest will be left out, fortunately for us, we already know crypto currency and it will save us once things like it happens.

Yes, the system is corrupt and there will be financial crises.

An important thing, though, is that the world is arranged in a top-down imperialist ladder.  Financial crises happen more often, the lower down the ladder you are.

One of the reasons is that, the crises lower down the ladder actually help keep the system stable for the countries at or near the top.  (Everyone will want dollars when an emerging market crashes, even though dollars themselves have been over-printed!)

Another reason is that it's easy for the top countries to put pressure on lower countries by *lighting the fire* of a financial crisis.  This helps top countries enjoy the obedience of lower countries in all policies.  The Fed could stop the suffering in Venezuela tomorrow by opening a swap line between bolivars and dollars, but it won't, because, in fact, Venezuela has been disobedient and must be made an example.

Financial manipulation is only half the reason why 'fiat money' is alive.  The other half is the imperial system.

[Underlord]

Hopefully the global economic crisis in the world does not have a bad impact on bitcoin.Walau will certainly affect the big or little later influence. We just need to prepare a new strategy to deal with the global crisis that will happen.

[sevenbits]

I do not really understand where the previous crisis dissolved, if a new one is about to start soon? In fact, one can not consider each market collapse separately. Those crises that we see now are all the same consequences of the mortgage market crisis in the US. It is high time to recognize that the crisis is of a profound systemic nature and one can not find a way out of it without radical changes in the world economic system. My prediction is that it is crypto that can become this tool.

[ExtremeFacials.com]

Financial crisis are inevitable, it will come. But I think it won’t be in the near future

Fine for us is to be ready for it, no matter, when it will come. If you would think about it before it will happen and prepare yourself for it, you will survive!

[warrior333]

I do not really understand where the previous crisis dissolved, if a new one is about to start soon? In fact, one can not consider each market collapse separately. Those crises that we see now are all the same consequences of the mortgage market crisis in the US. It is high time to recognize that the crisis is of a profound systemic nature and one can not find a way out of it without radical changes in the world economic system. My prediction is that it is crypto that can become this tool.

I don't understand why you think the crisis was a mortgage crisis. Real estate is an expensive asset so it fell demand first. People always start saving on the most expensive costs. This crisis of overproduction. No one wants to buy new goods and this leads to stagnation of production and job cuts. In fact, the crisis is not over. It spreads in waves.

[jimrome]

What would it be if usd rate decrease and started to have no value how bitcoin and other crypto will stand itself? I have an idea that it will remain based in crypto dollar rate in online but having without a fiat.
How will other crypto will rise by purchasing power of usd if it is not available in fiat?

You cannot even call this a hypothetical question because the US dollar will not crash to zero like you anticipate but there will be changes in valuation but it will be adjusted accordingly, all of the exchanges allow crypto to be traded in different trading pairs and the value will not go down even if it is evaluated in terms of dollars.
I my view these financial crisis are cyclic and now the major difference is that it is happening frequently now.

[Electric4]

That was an interesting read, I just wish I was more familiar and understood at a deeper level how economies work. Like you mentioned that in 1890 England was bailed out by banks, and it just doesn't compute in my head, I guess because they were invaders of other countries. I'm just going to have to read books about the subject.

[romero121]

What would it be if usd rate decrease and started to have no value how bitcoin and other crypto will stand itself? I have an idea that it will remain based in crypto dollar rate in online but having without a fiat.
How will other crypto will rise by purchasing power of usd if it is not available in fiat?

You cannot even call this a hypothetical question because the US dollar will not crash to zero like you anticipate but there will be changes in valuation but it will be adjusted accordingly, all of the exchanges allow crypto to be traded in different trading pairs and the value will not go down even if it is evaluated in terms of dollars.
I my view these financial crisis are cyclic and now the major difference is that it is happening frequently now.

Maybe that's the truth, but when something takes place in such a manner automatically it loses the trust of people who were the sole strength for the growth of the community. As mentioned the fluctuations taking place frequently keeps the people in a dilemma whether this will be successful or not. When such a thought gets arisen, it needs some sort of growth to stay good in the market.