2008 financial crisis with bitcoin?

[ashvvv123]

What do you think is the likelihood of a 2008 financial crisis happening again if we only used bitcoin and there were no fiat money at all?

[YuginKadoya]

Financial Crisis would definitely repeat if the core system of bitcoin will be broken But I think it is nearly impossible because that would be likely the end of the world as we know it, In the year of 2008 people doesn't earn much and most of their money was taken into banks to make it secure and some for taxes that would be brought for government projects, But what if the bank that you trust lost your money and then as a safety net the government had to print out more money in circulation that is the cost of devaluation of a fiat money This had caused the financial crisis, But I don't think that bitcoin will do the same because the maximum volume of bitcoin in circulation is fixed, And bitcoin had many security features that banks don't have.

[Dreamchaser21]

What do you think is the likelihood of a 2008 financial crisis happening again if we only used bitcoin and there were no fiat money at all?

If bitcoin is well recognize that time for sure same thing will happen, crisis will still occur because of so many problems. USD is a strong currency and yet we enter into crisis. Bitcoin can’t stop it, its only a coin and have no control over the economy. If there’s a new crisis coming, i hope bitcoin can lessen the impact.

[AjithBtc]

Financial crisis happening around the world isn't a big thing, what we see in the market is just common. I expect good acceptance from the community, which is enough to make the economic balance. In the past even when the world economy is down bitcoin showed positive signs of growth. This aasure that there won't be anymore financial crisis.

[hugeblack]

What do you think is the likelihood of a 2008 financial crisis happening again if we only used bitcoin and there were no fiat money at all?

you have forgotten other factors that could affect the global economy. There are assets that have value, gold, silver, precious metals and other assets that can replace paper money.
Also, if all the support for Bitcoin moves, this will affect the cryptocurrency market and the effect will not be %%% on the rest of the currencies.

[KingScorpio]

What do you think is the likelihood of a 2008 financial crisis happening again if we only used bitcoin and there were no fiat money at all?

the financial crisis from bitcoin will be a different nature, while the 2008 financial crisis came from workers being not able to pay their debt,

the financial crisis from bitcoin will be:

1. uncertainty
2. financial mess and chaos
3. high volatility.
4. everybody working for money will be systematically punished, because there is no systematic distribution bitcoin is like a rabbit hopper you dont know where it is.

[BrewMaster]

i honestly don't think that would make much of a difference as long as the banks exist. you see it is not about what form of currency we use it is about the infrastructure and the corrupted system that a big part of the economy of the world is built on. and that corruption was the reason why the 2008 financial crisis occured and bitcoin on its own can not change that.

as you can see even though bitcoin is decentralized people have a tendency to go towards centralization sometimes. hence the existence of services such as Coinbase which is basically another bank in the making.

[clover12]

I believe the financial crisis is still here. Explanation: they keep printing money. They keep diluting the dollar. They keep raising taxes. They keep finding new ways to tax people. It is all inflationary.

The money we have was not managed properly since we left the Gold Standard. It seems like everything is okay but the dollar is worth less than it has ever been.

[leonair]

It's really possible and already we are seeing some signs here and there that points out that we may experience another financial crysis, that is when we will be seeing a lot of known currencies having devaluations, and that's when btc and valuable metal elements will skyrocket.

Do you really know what you are talking about?

There would be an another financial crisis(not crysis) in the near future but what's your supporting reference that Bitcoin will start to skyrocket when this event happens? I believe that when one goes up then the other tends to go down. Fear is high when there's financial crisis so the people may start to invest with Gold but I really don't think with Bitcoin or I am wrong.

[pawanjain]

I believe the financial crisis is still here. Explanation: they keep printing money. They keep diluting the dollar. They keep raising taxes. They keep finding new ways to tax people. It is all inflationary.

The money we have was not managed properly since we left the Gold Standard. It seems like everything is okay but the dollar is worth less than it has ever been.

Might be true. Dollar is so worthless that the US has millions in debt which they have to pay to other countries.
I wonder how this would result whenever there is a financial crisis. I believe Bitcoin would be the most prominent thing in such a scenario.
I would love to see bitcoin becoming legalized throughout the world and being used in every platform.

[elda34b]

There would be an another financial crisis(not crysis) in the near future but what's your supporting reference that Bitcoin will start to skyrocket when this event happens? I believe that when one goes up then the other tends to go down. Fear is high when there's financial crisis so the people may start to invest with Gold but I really don't think with Bitcoin or I am wrong.

Last time I checked, Bitcoin is still perceived as speculative assets, so the ground is not as solid as gold or other precious metals. But who knows what will happen in the near future, especially with lots of growing interest in blockchain etc, I think millenials will tend to split their assets too, so it's not entirely impossible for Bitcoin to get a nice growth when there's a financial crisis that forced people to store their wealth on 'sound money' or asset.

[amishmanish]

The OP has asked about a situation where Fiat has been completely replaced by Bitcoin.

Financial Crisis happen because the Federal Reserve is free to print as much USD as they want. USD is the world's reserve currency and there is no limit on how much of it can be printed. In a world where Fiat has been replaced by Bitcoin, the effects of having a limited, deflationary supply would be evident.
Financing institutions would not be free to disburse subprime mortgages. The insurance companies backing them would not be free to show reserves on books to back that money with "documents". The financial Engineers would not be free to, in turn, use these loans as backing commodities to further sell "financial products".

These possiblities of Fiat Fractional reserve banking would ideally be non-existent with Bitcoin and a crisis like 2008 wouldn't ever start.

Or at least that was the plan. With exchanges now jumping in and asset managers making bitcoin another commodity, the day of fractional banking with bitcoin may arise soon. That is something we all should be wary of.

[XZERO1]

It's really possible and already we are seeing some signs here and there that points out that we may experience another financial crysis, that is when we will be seeing a lot of known currencies having devaluations, and that's when btc and valuable metal elements will skyrocket.

Do you really know what you are talking about?

There would be an another financial crisis(not crysis) in the near future but what's your supporting reference that Bitcoin will start to skyrocket when this event happens? I believe that when one goes up then the other tends to go down. Fear is high when there's financial crisis so the people may start to invest with Gold but I really don't think with Bitcoin or I am wrong.

Yes, I know exactly what I'm talking about but I'm really not sure if you do know what you're talking about?  

You know what are the first things that will be devalued when financial crysis happens? It's your day to day currency in your pocket, either it's usd, euro or any other known currency basically, and what are the potential replacements for them ? Known valuable metal elements like gold, bitcoin or any other cryptocurrency, and what do you think will happens when millions of people suddenly try to buy said valuable metal elements or bitcoin and produce a huge demand without sufficient supply ? yeah, it will skyrocket...

[kodtycoon]

cases like this have often been debated, fiat still exists until the end of time I think because fiat circulation is wide enough. if its replaced with bitcoin it must definitely be exchanged to bitcoin before fiat is destroyed, it won't be a crisis if everyone use bitcoin because there is no high tax in contrast to banks that every month there must be taxation the results of your money in the bank are lost because of being taxed

[gantez]

The fluctuations in bitcoin has shown that it is not ready for such on its head. There will be confusion , chaos and anything you can mention that can lead to the end of human generation. Imagine how it feels when you are broke in your pucket . It is not funny.
Fiat will keep being around because it is stable, can be predicted and exchanged physically without flagrant fluctuations.

[posi]

Firstly, I believed the OP doesnt understand the concept behind the creation of bitcoin when thought that the likelihood of 2008 financial crisis might happen again with bitcoin because the reason for bitcoin creation was to fix the error of financial activities caused by the government not to add to it.

[carter34]

The world is moving forward and not retrogressing. Bitcoin domination won't be possible because it is not certain, not determined can't be used without the internet. It is just not possible the way bitcoin is made to be used.

[suzanne5223]

What do you think is the likelihood of a 2008 financial crisis happening again if we only used bitcoin and there were no fiat money at all?

In history and as of the year 2008 what usually causes financial crisis printing of too much money and push up mortgage market and bank loaning of money. But, bitcoin case is different because it was actually implement because of the financial crisis.

[demenBTC]

What do you think is the likelihood of a 2008 financial crisis happening again if we only used bitcoin and there were no fiat money at all?

You don't need to worry about losing paper money in this world, the banknote machine is in all countries and it won't disappear, the use of bitcoin won't kill paper money and the crisis happens not because it's a friend

[avikz]

What do you think is the likelihood of a 2008 financial crisis happening again if we only used bitcoin and there were no fiat money at all?

First you need to understand why the subprime crisis happened in 2008. It has nothing to do with the monetary system or currency issues. It happened due to the flawed practices of mortgage lenders who kept on lowering lending rates and selling out derivatives to securitize the lending. Do you find any relation between the currency system and the reason of crisis?

So having bitcoin as a currency without any fiat wouldn't have changed the fate. No matter what currency system we have, this had to happen!