:-> Bitcoin are helping to reduce global debt. :->

[Kakmakr]

Ok, let's forget for one moment that Banks are also getting money from thin air, when Reserve Banks are printing money. Let's just concentrate on the millions of deposits that are deposited into Banks on a daily basis and that most of this money is borrowed to other people with interest. 

This money is channelled to loans <Short-term and Long-term> and people pay interest on those loans, resulting in higher debt.

So, when people remove their money from Banks and they invest in Bitcoin, they actually reduce the amount of money that Banks can loan to other people, effectively reducing global debt.    

This is why we always tell people not to buy bitcoins with credit cards or loans, because you are borrowing money from Banks to invest in Bitcoin and that increase debt levels again.  

Hoarding Bitcoin also stimulate a saving habit and that helps to counter increasing debt levels.  

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[qiwoman2]

WOW, I never realized this but yes it's true as Bitcoin also is a finite asset and in limited supply as well. FIAT is never ending and inflationary in supply which only reduces purchasing power and technically has wiped out middle classes in many western countries, so now is the time to collect some Bitcoin and I would agree, that it can reduce debt as the fractional reserve banking system is the biggest ponzi on the planet and you all saw what happened to Greece in their bank RUN just a few years back. If everyone now went to the banks all at once and asked for THIER money, the banks don't have it. SO more you put aside in Bitcoin from your wages, it might save you from getting into debt later on when your FIAT money is worth less and less, but your daily expenses are getting higher and higher.

[jseverson]

So, when people remove their money from Banks and they invest in Bitcoin, they actually reduce the amount of money that Banks can loan to other people, effectively reducing global debt.    

Only if the entity you bought Bitcoin from didn't deposit the money you used into one of their bank accounts lol. I see what you're saying, but I'm pretty sure the cash flow isn't as straightforward as that, considering the money you spent ends up elsewhere, which, again, could be directly into a different bank account. I think saying Bitcoin helps reduce global debt is a massive reach, and I certainly don't think it helps in this specific way.

[Bttzed03]

LOL I never thought of that one and yeah it does reduce the debt level. But come to think of it, there are also blockchain platforms that offers this type of service and although they are still few compared to banks, they also add to increasing debt levels.

[buwaytress]

I don't remember much from a very basic (and free) course in economics I took almost 20 years ago, but I do remember a brief theoretical explanation of how capital flows work with banks, and it's like you described: money deposited with banks and lent out to others with interest.

Unfortunately, that isn't exactly how it works in practice, at least in my country.

This is a more accurate picture: Total cash in circulation = X.

Bank receives X sum of deposits from A. Bank electronically has X amount of loans to give out to B people, but also X sum in cash. A withdraws X sum of money. But B pays back X + interest.

So what do we magically have? "Cash" including electronic, in circulation = 2X + interest.

Not the most accurate but gives you an idea of how the current system just creates money electronically, doesn't even need to print fiat to dilute it.

[Kakmakr]

WOW, I never realized this but yes it's true as Bitcoin also is a finite asset and in limited supply as well. FIAT is never ending and inflationary in supply which only reduces purchasing power and technically has wiped out middle classes in many western countries, so now is the time to collect some Bitcoin and I would agree, that it can reduce debt as the fractional reserve banking system is the biggest ponzi on the planet and you all saw what happened to Greece in their bank RUN just a few years back. If everyone now went to the banks all at once and asked for THIER money, the banks don't have it. SO more you put aside in Bitcoin from your wages, it might save you from getting into debt later on when your FIAT money is worth less and less, but your daily expenses are getting higher and higher.

Exactly, it is not just the devaluation of our fiat currency that are putting us deeper into debt, it is also the fractional reserve banking practices that are pulling us down. Greece is the perfect example of this and I will never forget the sad pictures of long queues at Banks, when the country’s banks were closed and a daily cash withdrawal limit of some €60 were implemented at the ATMs.  

Will we never learn? The next economic crisis is around the corner and Bank runs like this will be the norm.  

[Herbert2020]

the real question is whether banks are actually doing that instead of everything being virtual. what you said here is only going to work if banks are honest and are operating with a zero sum game. otherwise if they are lending more money than they actually have then people pulling out their fiat from banks isn't going to change that. they will still continue lending the same amount if not more.

[romero121]

Even when one invests with the banking credit and debit card it is making a circulation. In this regard bitcoin isn't causing any global debt increase. Same as the investing of money into bitcoin, cashing out of bitcoin takes place all around which will neutralize the buying to the selling.

[cfif123]

LOL I never thought of that one and yeah it does reduce the debt level. But come to think of it, there are also blockchain platforms that offers this type of service and although they are still few compared to banks, they also add to increasing debt levels.

in my opinion, yes, because of what? world debt from real currency and bitcoin digital currency can help pay off debt debt that exists in the world but in the world rely on money that can be held and felt unfortunately the problem is not seeing the impact of digital money

[septi.JR]

really a reasonable estimate, I never even thought so deeply, the bitcoin revolution for alternative payment in the future has contributed and helped global debt, a word that is suitable for BTC (you're the best, among the best crypocurrency)

[maemunah]

LOL I never thought of that one and yeah it does reduce the debt level. But come to think of it, there are also blockchain platforms that offers this type of service and although they are still few compared to banks, they also add to increasing debt levels.

yes, it is also true that bitcoin can recover much of the world's debt debt because the world thinks the world does not need bitcoin but needs thousands of dollars and hundred hundreds of dollars

[Qurelal]

Ok, if you are right, then bitcoin should be accepted in global.

[bitfocus]

I never thought this way! but news about BTC reducing global debt is definitely going viral.

[HeRetiK]

Very interesting point of view, but I'm afraid in the end the bank still wins. People withdrawing their money from banks will likely lead to one of the following scenarios:

a) Central banks will allow banks to run on smaller fractional reserves and / or print more money lend more money to banks.
b) Banks will charge higher interest rates on what little money they can lend to people due to supply and demand.

Neither of which would be a pretty sight. Let's keep in mind that debt is inherent to the way our current economy runs, so it's unlikely to go away easily.

[Ridwan Fauzi]

Where we can buy bitcoin without depositing our money to our bank account? may it is hard thing to do for me. Until now, I just found one of the way to buy bitcoin is through bank account which mean I need to deposit my money it it. In my country there is no bitcoin retailer so far for exactly I can buy bitcoin with my money cash.

Conceptually, I got your nucleus on this thread and I agree with it, the banks just will make someones having many debt in their live and the government only made it happened with no solution. The banks only make everyone miserable, just give an education that having debt is aim of human life in the world. I don't like the concept of the bank as a whole honestly but the bad thing is I'm one of the booster who keeps the bank branch out least likely by having a bank account and lay away my money in it, an actual hypocrisy.
   

[sheenshane]

snip-
Neither of which would be a pretty sight. Let's keep in mind that debt is inherent to the way our current economy runs, so it's unlikely to go away easily.

Very interesting idea, this is also what comes in my mind that people need to control their selves of having debt even virtual or banks. But ain't sure if Bitcoin really helps to reduce the level of debt. How about those crypto lending platforms they also offered debt to people.
Is just us, not Bank nor Bitcoin to help you of debt. Both are helping us, we can withdraw our fiat from converting bitcoin to the Banks.

[bitvalak]

That's why Bitcoin was created, because I'm sure the exchange tool must have a fixed total and cannot change in number. Buying bitcoin directly without a credit card will at least ease the amount of debt that already exists. Because debt is only in writing in the banking system, while the real amount is less than 50% of the total debt.

[kryptqnick]

WOW, I never realized this but yes it's true as Bitcoin also is a finite asset and in limited supply as well.

It also works well with bitcoin, because, unlike banks, wallet providers don't take any of your money to give it to others. There was recently a thread on bitcointalk where the op actually argued the opposite, but I checked the ToS of blockchain.info and some exchanges and found out that they don't do this stuff. It's good that we can't create coins out of thin air, but the problem is that it's not always the case. Some bug in the past already lead to creation of non-existing bitcoins. The dev team noticed them in time and updated the core, but that means that theoretically it can miss something like that in the future, and some coins will illegally enter the circulation and stay for a while. In that case it will be even more important that solid crypto companies don't mess around with coins of their customers.

[BitcoinFX]

WOW, I never realized this but yes it's true as Bitcoin also is a finite asset and in limited supply as well. FIAT is never ending and inflationary in supply which only reduces purchasing power and technically has wiped out middle classes in many western countries, so now is the time to collect some Bitcoin and I would agree, that it can reduce debt as the fractional reserve banking system is the biggest ponzi on the planet and you all saw what happened to Greece in their bank RUN just a few years back. If everyone now went to the banks all at once and asked for THIER money, the banks don't have it. SO more you put aside in Bitcoin from your wages, it might save you from getting into debt later on when your FIAT money is worth less and less, but your daily expenses are getting higher and higher.

Exactly, it is not just the devaluation of our fiat currency that are putting us deeper into debt, it is also the fractional reserve banking practices that are pulling us down. Greece is the perfect example of this and I will never forget the sad pictures of long queues at Banks, when the country’s banks were closed and a daily cash withdrawal limit of some €60 were implemented at the ATMs.  

Will we never learn? The next economic crisis is around the corner and Bank runs like this will be the norm.  

- https://medium.com/@jimmysong/bitcoins-path-to-method-of-payment-6cb5b3297268

[DooMAD]

So, when people remove their money from Banks and they invest in Bitcoin, they actually reduce the amount of money that Banks can loan to other people, effectively reducing global debt.    

Only if the entity you bought Bitcoin from didn't deposit the money you used into one of their bank accounts lol. I see what you're saying, but I'm pretty sure the cash flow isn't as straightforward as that, considering the money you spent ends up elsewhere, which, again, could be directly into a different bank account.

True.  A significant number of people currently involved in Bitcoin are speculators who are attempting to grow their national currency holdings.  That indeed doesn't help in reducing the quantity of IOUs the banksters get to play with. 

But if there ever comes a time in future where things change and lots of people receive their income in BTC and then spend their BTC back into the economy for goods and services, then it would help reduce global debt.  But if this is going to happen, it probably won't be for some time yet.