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

[kelz1]

When people stop putting money into banks and switching to bitcoin then the money has to go somewhere. Much of it will end up in fiat exchanges like coinbase, while others are spread out more via local bitcoins.

[cizatext]

Nice write ups but my confusion is where you said if people buy bitcoin with they credit cards their are leaving loan behind and debt will be on debt, but what if the people are buying the bitcoin with they money on the credit cards and not borrowing from the bank. We are all aware that banks make profits from the money we save in the bank and it only when you borrow money from bank that you can be indebted.

[jseverson]

The impact is still the same, because fiat currency are converted into Bitcoin to enable the payment via Payment processors. 

I think it's more appropriate to say exchanged in this case. Your fiat does not turn into Bitcoin, it goes into another person's bank account (the entity you bought your coins from), as I have previously said. Banks don't necessarily get less money to lend at the end of the day because the cash flow doesn't stop until the fiat you spent rests somewhere, and the likely place for that is some other bank.

Either way, I think the global debt problem is too complex to be addressed by simply stifling cash flow.

[bitbunnny]

I can't see how Bitcoin could reduce the global debt. Maybe some individuals have managed to improve their personal financial situation and reduce their debts but on the global level and countries level such influence isn't recgonized. Although at the end Bitcoin is at some point again converted to fiat currencies it would be very hard to track and measure the impact of Bitcoin on global debt scale and to see some tangible resulst Bitcoin should be globaly regulated and fornaly introduced into economic system.

[BlackPanda]

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.

Simply put, Bitcoin has made the global financial system more flexible and reduced the various costs that usually exist when we use conventional banks. In calculations, Bitcoin has made the financial system much better, this is what is called an improvement in the global financial system.

[magneto]

I think that it's probably a bit of a stretch to say that bitcoin currently makes an impact on global debt levels.

The only thing that I can say for certain is that the bitcoin network is based on the idea of decentralisation and trustlessness, which means that there won't ever be fractional reserve that is conducted for transactions and holdings on chain. That is different to how the debt based fractional reserve system that we've got in most countries right now. There is also potential for people to hold bitcoin as a globally accessible store of value that will benefit them financially.

But when it comes to actually reducing debt levels of countries, bitcoin as a currency simply is not related to how these debts are being created. Perhaps in individual cases capital gains via BTC is able to get someone out of debt, but since it's a zero sum game, it also means that someone else is losing out.

[syamster]

When people stop putting money into banks and switching to bitcoin then the money has to go somewhere. Much of it will end up in fiat exchanges like coinbase, while others are spread out more via local bitcoins.

Now almost everywhere fiat has lost the value and coins are taking its place because it is safe to use and it increases to hold but if you will not hold your coin and use only money then it is useless, people has become so modern so they are using digital money which is bitcoin for sure, it is easy to use reliable to carry without any problem and fear to get robbed in streets.

[blueteam09]

But if the investments do not generate profits on time, we will raise the debt up. Also, this market has too many unnecessary risks so you will quickly lose money in your spending. Especially if you have loans in Bitcoin, you may have to accept the price increase, and you will incur a massive fee for the previous loan.

[Stac]

 .  According to my point of view Bitcoin are helping to reduce global debt  .Usually a central bank have the power to print more for the time of recessions for the survival of the economy of their country but this printing of currency will bring  a great inflation, to avoid such inflation's of currencies the money supply have to be controlled or else the inflation of currency will lead to currency devaluation that would lead to currency crisis . In order to avoid these difficulties the  government have to implement a completely new monetary system  just like a decentralized digital currency created by Satoshi Nakamoto  like Bitcoin .

[jseverson]

-snip-

Simply put, Bitcoin has made the global financial system more flexible and reduced the various costs that usually exist when we use conventional banks. In calculations, Bitcoin has made the financial system much better, this is what is called an improvement in the global financial system.

You might want to check your quote, buddy. That's not even close to what I was saying lol. You might be in the wrong topic entirely, even.

[Alpinat]

People intended to loan in banks because it is immediately needed or I should say emergency, it is helpful to some people but yes like you said, Global debt is increasing. Bitcoin is the best option of those people who are concern is the global debt because it can really reduce it because they are not contributing to bank loans.

[goaldigger]

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.  

If you have no goals rather than putting some part of your earnings on banks as a savings , you make your bank rich but not you. I agree with banks making our deposited money as their capital and they give it to other people as loan or simply invest it on markets. But if you have the guts to outsmart banks, you would choose to put it on market or basically buy some bitcoins then hold. You will see that you earn not cents but thousands and the rest effects with banks will follow.

[Pixyoxx]

This is such a good observation. Definitely Bitcoins is helping reduce global debt.
Small countries and big organisation can really help themselves with this.

[BitcoinPanther]

You have a point there buddy. It is true that bank really give someone loans and have that earn an interest. I don't see anything bad on it. We need that for banks to survive or grow which gives somehow people the chance to create wealth if they handled that loan very well. Please remember that there is a good debt and a bad debt. It is also applicable to some platform here in Cryptocurrency which give that services. It depends on the person who handles the money. That is why we need to educate people to handle their money/crypto wisely.

[42K]

I believe there are other alternative means of alleviating poverty or reducing global debt. However, bitcoin is no exception. You have a point that bitcoin investment helps reduce debt people owe. It also gives people a reliable source of income even if its not a full job, its capable of empowering people to take up responsibility.

[dimastegar]

I get the point. And I haven't thought about that before. I am sure that you are reviewing this because you know about the Bank. But now, crypto loans have begun to emerge that have both positive and shortcomings. At the very least, don't use a loan system if you don't really need it.

[CODE200]

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.  

If people are good in handling in their loan, they will not have any problem. Yes, bitcoin can help to reduce the debt of the people since you can earn some money without releasing any of them. But why would you loan if you can earn money?

[Colt81]

In my own personal opinion, it is possible for bitcoin to help people who does not have any good source of income and to reduce their debt by start investing their profit in bitcoin that they will be giving a chance to experience a better earning by just converting their fiat into bitcoin.

[Dread Pirate Roberts]

Banks do the same thing into the stock market. but the difference is in the stock market. government has a professional trader that is required to make a definite profit. different from crypto. even they had a professional trader on the stock market or crypto market. crypto especially bitcoin its still unpredictable. and it can be so risky for them.

[Wexnident]

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.  

That was a mind-blowing fact. A wow moment for me right there. Only though, as you said, if people buy bitcoins using loans it defeats the fact that bitcoin reduces global debt. It was a great idea observing it from the surface but since the world still mainly revolves on banks and loans, I doubt that we could observe it's effects that much.
Holding is better than the loans of banks since it generates more profit but looking at it from a broader perspective, Holding depends on the market flow and its more of an instant profit when you sell it on a high price but loans have a constant amount of interest made so you would be basically making money every day. I'd say reducing the global debt of the world is a good thing but I don't think it would disappear any time soon.