Cryptocurrency in the next financial crisis

[CryptoDoomslayer_69]

Life is rather uncertain nowadays as anything can happen at any time and we would be caught off guard. That’s also one way to describe the current economy at this stage. With the world’s economy expanding and expanding there have been more crashes as the years go by and they are becoming more frequent and some say at any moment one could happen.

So you are left with a situation in which the money you currently own, fiat money: the dollar bills & coins, will become worthless and you cannot even buy anything you need to survive on a day to day basis. In this situation, people will have to resort to a system of bartering like in the stone ages. I guess if you have a lot of stuff with value you can trade that would be great, but a majority of people don’t have such a stash. Things can get ugly real fast.
   
Therefore, in such a doomsday situation you have to come up with a situation in which you can trade with people in order to survive. There are two solutions I can come up with, either using precious metals such as Gold & Silver or using Cryptocurrency. Considering that fiat currency is useless, Cryptocurrency might raise in value so that it can be useful as a means of trade as long as the Internet still exists which will most likely be the case.

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[bkbirge]

Sure, that's a possibility I guess, in maybe the same way being a victim of spontaneous combustion is technically possible, but incredibly unlikely. It's probably good to be aware that those corner cases exist but it's a far better use of time to plan for much more likely scenarios, like retirement with the current financial system mostly intact.

[teosanru]

I don't think dollar is going to become worthless. It is becoming less valuable day by day because government is making it that way. When it will reach a stage where it's value will diminish 100 times from what it is today then government will most likely slash out last two zeroes from the currency denomination which means 100$ will become $1. We have seen this happening in countries experiencing hyper inflation but this can also be done in normal scenarios of inflation. Obviously this is something which could take a lot of time. But definitely what you are saying is not likely to happen unless there is some significant tragedy that paves the way for complete Economic meltdown. And as history says economic meltdowns generally pave the way for political revolutions too so be sure we are getting a new type of rule too if there is such a situation.

[enhu]

As long as internet runs, I guess the financial crisis will still be solve in the light of cryptocurrency. If internet however is not going to be available anymore for some reason, there will be more valuable commodity other than precious metal to consider collecting while crisis is going on. I do hope we are not going back to no internet era though. A lot of us are already dependent to the internet, I can't live without it anymore unless I have sacks of salt stored in my basement.

[adzino]

Life is rather uncertain nowadays as anything can happen at any time and we would be caught off guard. That’s also one way to describe the current economy at this stage. With the world’s economy expanding and expanding there have been more crashes as the years go by and they are becoming more frequent and some say at any moment one could happen.

So you are left with a situation in which the money you currently own, fiat money: the dollar bills & coins, will become worthless and you cannot even buy anything you need to survive on a day to day basis. In this situation, people will have to resort to a system of bartering like in the stone ages. I guess if you have a lot of stuff with value you can trade that would be great, but a majority of people don’t have such a stash. Things can get ugly real fast.
   
Therefore, in such a doomsday situation you have to come up with a situation in which you can trade with people in order to survive. There are two solutions I can come up with, either using precious metals such as Gold & Silver or using Cryptocurrency. Considering that fiat currency is useless, Cryptocurrency might raise in value so that it can be useful as a means of trade as long as the Internet still exists which will most likely be the case.

So according to you, if fiat becomes useless and loses its value, the price of crypto currencies will rise, right? But isn't the rise of the "price" of the coins just a mere reflection of the useless fiat currency? I mean inflation has caused the price of the crypto currency to rise and using this crypto currency you still won't be able to buy anything (cause you will be holding the same value of coins as your fiat, that is say 100 dollars worth of bitcoin) cause of the high price of goods. Again, if fiat becomes useless, how will we evaluate/compare/weight the value of crypto currencies?

[migws]

Life is rather uncertain nowadays as anything can happen at any time and we would be caught off guard. That’s also one way to describe the current economy at this stage. With the world’s economy expanding and expanding there have been more crashes as the years go by and they are becoming more frequent and some say at any moment one could happen.

So you are left with a situation in which the money you currently own, fiat money: the dollar bills & coins, will become worthless and you cannot even buy anything you need to survive on a day to day basis. In this situation, people will have to resort to a system of bartering like in the stone ages. I guess if you have a lot of stuff with value you can trade that would be great, but a majority of people don’t have such a stash. Things can get ugly real fast.
   
Therefore, in such a doomsday situation you have to come up with a situation in which you can trade with people in order to survive. There are two solutions I can come up with, either using precious metals such as Gold & Silver or using Cryptocurrency. Considering that fiat currency is useless, Cryptocurrency might raise in value so that it can be useful as a means of trade as long as the Internet still exists which will most likely be the case.

In the case of a complete collapse of fiat money, cryptocurrency can be a way out. But can such a crisis happen? I think gold, expensive metals, oil and similar assets will have value, but cryptocurrency can be an intermediate means that will replace fiat

[ChrisPop]

In the event of a doomsday situation or financial crisis GOLD and Silver fail the test of payment mean as they are not portable. How am I going to buy food with a gold/silver bullion bar? So I think the best solution remains cryptocurrency which is not controlled by any government. That would fit Bitcoin use case. But in the event we remain without electricity it's not going to be viable anymore isn't it.. Like you can't have internet without electricity and you can't have a p2p network without internet. Hopefully we won't experience such a catastrophe.

[South Park]

Life is rather uncertain nowadays as anything can happen at any time and we would be caught off guard. That’s also one way to describe the current economy at this stage. With the world’s economy expanding and expanding there have been more crashes as the years go by and they are becoming more frequent and some say at any moment one could happen.

So you are left with a situation in which the money you currently own, fiat money: the dollar bills & coins, will become worthless and you cannot even buy anything you need to survive on a day to day basis. In this situation, people will have to resort to a system of bartering like in the stone ages. I guess if you have a lot of stuff with value you can trade that would be great, but a majority of people don’t have such a stash. Things can get ugly real fast.
   
Therefore, in such a doomsday situation you have to come up with a situation in which you can trade with people in order to survive. There are two solutions I can come up with, either using precious metals such as Gold & Silver or using Cryptocurrency. Considering that fiat currency is useless, Cryptocurrency might raise in value so that it can be useful as a means of trade as long as the Internet still exists which will most likely be the case.

The scenario that you are presenting is very extreme, if fiat currencies become completely worthless to the point that you cannot do anything with them it is fair to question us whether or not the electric grid will still be functioning, if that is not the case it doesn't matter how much bitcoin or other cryptocurrencies you are storing because you will not be able to use them, and at that point gold and silver are not going to be that valuable either because very few people have it and there will be many forgeries, so it is likely people will use all kind of useful items to trade, like medicines and other medical supplies, alcohol, weapons and other useful stuff.

[The Sceptical Chymist]

There are two solutions I can come up with, either using precious metals such as Gold & Silver or using Cryptocurrency.

When you talk about fiat money becoming worthless, you're really talking about every currency becoming worthless, and that has never happened that I know of.  It's happened in hyperinflation situations in Germany and Zimbabwe and Venezuela, but never has the entire world's fiat failed all at once. 

What kind of economic disaster do you think could cause that to happen?  I would say that if we had a crisis so unbelievably dire that all money became worthless, the world would likely be ending.  In that case, we're basically talking about a zombie apocalypse--food, land, guns, and a nice cozy bunker with a generator and some booze would be what you want, not gold or silver or cryptocurrency.  Certainly not cryptocurrency.

And what happens when a single currency fails, like in Venezuela?  They start using a currency that's stable, like the US dollar.  They don't use precious metals and very few of them turn to crypto.  I know people here like to believe that bitcoin will save the day if a disaster hits, but I just don't think that's the case.

[malevolent]

Therefore, in such a doomsday situation you have to come up with a situation in which you can trade with people in order to survive. There are two solutions I can come up with, either using precious metals such as Gold & Silver or using Cryptocurrency. Considering that fiat currency is useless, Cryptocurrency might raise in value so that it can be useful as a means of trade as long as the Internet still exists which will most likely be the case.

If it gets this bad, neither silver, nor gold, nor any cryptocurrency is going to retain their value. Food, medicine, tools, weapons, fuel, clothes and textiles, vehicles and automotive parts are all going to be more valuable due to their utility. Ubiquitous access to Internet would also become a thing of the past.

[squatter]

So you are left with a situation in which the money you currently own, fiat money: the dollar bills & coins, will become worthless and you cannot even buy anything you need to survive on a day to day basis. In this situation, people will have to resort to a system of bartering like in the stone ages.

Barter is one way about it, particularly during an actual crisis or temporary transitional state. But sovereign currencies are likely to be rebooted by governments -- not necessarily as free floating fiat since those would have failed, but as backed currencies. Perhaps a return to gold and silver convertible dollars, or notes backed by a diverse basket of assets. Maybe we'll return to privately issued notes like in the free banking era.

Therefore, in such a doomsday situation you have to come up with a situation in which you can trade with people in order to survive. There are two solutions I can come up with, either using precious metals such as Gold & Silver or using Cryptocurrency.

It really depends on the nature of "doomsday." In a post-apocalyptic world with no internet or power grid, miners would be bricks and bitcoins would be useless. In a really brutal world, even gold would be worthless -- bullets and canned food would be much more valuable.

[franky1]

So according to you, if fiat becomes useless and loses its value, the price of crypto currencies will rise, right? But isn't the rise of the "price" of the coins just a mere reflection of the useless fiat currency?

exactly this.
in a crisis bitcoin could surge to $1m a coin.. but what should be explained is this weeks price can buy 8500 loaves of bread. but in a crises, if still measuring against a useless $ amount. will bitcoin buy 8500 loaves of bread or 1million loaves of bread. i guarantee you it wont be 1million loaves of brad even if the $ was 1m a coin

What kind of economic disaster do you think could cause that to happen? 

.. as for the crisis question its not a IF but a WHEN. and people think its gonna b a long time because mortgages have not been so neglectful as previously so mortgages wont trigger the next crisis. however its pensions/retirement funds that WILL trigger the next crisis
this is because the 'baby boomers' the generation straight after WW2 where there was extra population growth are now reaching retirement age. but the issue is that there isnt enough in the retirement funds to cover it.

imagine it $1 put away for retirement was like 10 loaves of bread so someone wanting a moderate lifestyle would have put back $8 a week out of their $100 pay hoping the 40 years of doing so ($16k) would give them a nice 10 year living allowance of $160 a week
which back then seemed like 66% more then their current wage

but as we all know $160 doesnt buy people very much these days and if people are living 20 years instead of 10 years and on a guaranteed minimum payment that $160 a week soon dries up well before they would probably die

back in the 50's people were not living long lives so planning pension funds in the 60-70's when boomers started working was based on math of not living as long. yet the 80s, 90's and 00's seen medical revolutions ensure people live longer.
people no longer die as much from

diabeties
because theres medication for type 2 and better understanding of type 1&2.
gone are the days of old people needing to pee every hour of the night and just call it getting old. now its a symptom of diabeties and treated and so people dont suffer the symptoms of diabeties. thus live longer. less amputations occur now, less people going blind, less having blood/kidney issues.

heart issues
blood pressure meds, chloresteral meds, better diets, smoking popularity has declined heart transplants and pacemakers have more success. generally less people die of heart issues than 60 years ago

this means they will be taking more monthly pension payments than predicted, meaning taking more out of the pension pots than other generations. and this pot of funds is not infinite.

so with previous estimate that pensions meant to last people until they are 71yo (someone born 1950 would be 71 in 2021) is now expected to live until 80yo(2030) thus a deficit of 9 years where funds were not predicted. and thats before accounting for inflation changes over time which affect how much funds come out per month compared to predictions 70 years ago

so as i say, the next time bomb is nearer then most think.

[figmentofmyass]

There are two solutions I can come up with, either using precious metals such as Gold & Silver or using Cryptocurrency.

When you talk about fiat money becoming worthless, you're really talking about every currency becoming worthless, and that has never happened that I know of.  It's happened in hyperinflation situations in Germany and Zimbabwe and Venezuela, but never has the entire world's fiat failed all at once. 

What kind of economic disaster do you think could cause that to happen?

...

And what happens when a single currency fails, like in Venezuela?  They start using a currency that's stable, like the US dollar.

and what happens when the USD collapses?

the global economy is drastically more interdependent now than the days of weimar germany. the '97 asian financial crisis and 2008 global financial crisis illustrate that future crises will be increasingly characterized by financial contagion. just imagine the chain of events that would occur if the USA could no longer pay its debts and the USD---the global reserve currency---collapsed.

the entire global economy would be thrown into upheaval as never seen before. the dollar definitely wouldn't go down alone.

[Kyraishi]

Not sure about this, your assuming situation where all fiat currencies (on every country) goes through hyper inflation which is almost impossible unless every country has a recession.

Also, in a world where the dollar is useless, how would crypto-currencies take over? Wouldn't essential living supplies (such as food and water) be used as batering products and all currencies be forgotten about. Who would accept useless coins for a week worth of food?

[Artemis3]

Life is rather uncertain nowadays as anything can happen at any time and we would be caught off guard. That’s also one way to describe the current economy at this stage. With the world’s economy expanding and expanding there have been more crashes as the years go by and they are becoming more frequent and some say at any moment one could happen.

So you are left with a situation in which the money you currently own, fiat money: the dollar bills & coins, will become worthless and you cannot even buy anything you need to survive on a day to day basis. In this situation, people will have to resort to a system of bartering like in the stone ages. I guess if you have a lot of stuff with value you can trade that would be great, but a majority of people don’t have such a stash. Things can get ugly real fast.
   
Therefore, in such a doomsday situation you have to come up with a situation in which you can trade with people in order to survive. There are two solutions I can come up with, either using precious metals such as Gold & Silver or using Cryptocurrency. Considering that fiat currency is useless, Cryptocurrency might raise in value so that it can be useful as a means of trade as long as the Internet still exists which will most likely be the case.

That is what history tells us, but its not just metals (or crypto), but anything that is deemed to be valuable. After Germany was defeated in WWII, their money became worthless, and people were using cigarettes or bottles of liquor the occupation soldiers would gladly exchange for their foreign currency.

Just about anything that doesn't perish can be used, and perishable things too but with a very limited timespan. Of course bartering is also done, when possible and if convenient for both buyer and seller. Say flour for eggs or such, rather than go fetch a wheelbarrow full of banknotes that lose their value from the time you are told the price to the time you actually deliver it, and that is when you don't have a crisis getting the actual banknotes in the first place.

In this forsaken country, you can only withdraw a single banknote per day from a bank. They made 3 types this year, and the biggest one is equivalent to just 2.5 USD at current exchange rates.

The "socialist" government just rose the min wage, 7 TIMES. Wow, applauds the left, until you find out this means that, today, the wage went from 2 USD a month, to 15 USD a month, for a full time job. At the current inflation rate, it will become 2 USD again in a couple of months, give or take...

[alexsandria]

I mean that's not entirely impossible, but I don't think fiat would be worthless in that scenario. I mean, if fiat would be worthless, how much more to cryptocurrencies? I know what's your pointing out, it is just that it is not that rational in a way that fiat would be always fiat . But it what you have mentioned is good in a way that we must not just lend or partition our money on one type, we should at least make it on other types like crypto

[marky89]

Therefore, in such a doomsday situation you have to come up with a situation in which you can trade with people in order to survive. There are two solutions I can come up with, either using precious metals such as Gold & Silver or using Cryptocurrency. Considering that fiat currency is useless, Cryptocurrency might raise in value so that it can be useful as a means of trade as long as the Internet still exists which will most likely be the case.

Even if un-backed fiat currencies are replaced, government issued currencies aren't going away.

I think we'll go back to some variant of the gold standard, where legal tender is pegged to hard commodity value. Decades from now, I could even see government money being backed by BTC.

[Willitivity]

Contrary to views that crytpo might flourish in the event if an economic crisis. I am highly skeptical about that. If the traditional payment system which is fiat gets so devalued, then it's dragging cryptocurrencies alongside with it because no one will have the resources to afford or keep up with its requirements and that becomes a problem on both ends.

[judeafante]

Life is rather uncertain nowadays as anything can happen at any time and we would be caught off guard. That’s also one way to describe the current economy at this stage. With the world’s economy expanding and expanding there have been more crashes as the years go by and they are becoming more frequent and some say at any moment one could happen.

So you are left with a situation in which the money you currently own, fiat money: the dollar bills & coins, will become worthless and you cannot even buy anything you need to survive on a day to day basis. In this situation, people will have to resort to a system of bartering like in the stone ages. I guess if you have a lot of stuff with value you can trade that would be great, but a majority of people don’t have such a stash. Things can get ugly real fast.
   
Therefore, in such a doomsday situation you have to come up with a situation in which you can trade with people in order to survive. There are two solutions I can come up with, either using precious metals such as Gold & Silver or using Cryptocurrency. Considering that fiat currency is useless, Cryptocurrency might raise in value so that it can be useful as a means of trade as long as the Internet still exists which will most likely be the case.

Of the three Gold & Silver or using Cryptocurrency, the latter is the best option, it is the most sought and with high potential assets eight now, I agree that as long as the internet is existing we will have Cryptocurrency it's now part of our modern way of life, it's gives us equality whether we are living in a first world country or a third world, but I highly recommend that you not put all your eggs in one basket, you must also include gold silver must put more on Cryptocurrency.

[CryptoBry]

Life is rather uncertain nowadays as anything can happen at any time and we would be caught off guard. That’s also one way to describe the current economy at this stage. With the world’s economy expanding and expanding there have been more crashes as the years go by and they are becoming more frequent and some say at any moment one could happen.

I agree with you, sir CryptoDoomslayer_69, there are many brewing pots all around the world right now and we don't know yet exactly when things will get worse but years from now things will be exploding right before our eyes. I am talking about the global economy and our changing political landscape. A great conflagration is about to occur that can affect all mankind...will it be another world war?

So you are left with a situation in which the money you currently own, fiat money: the dollar bills & coins, will become worthless and you cannot even buy anything you need to survive on a day-to-day basis. In this situation, people will have to resort to a system of bartering like in the stone ages. I guess if you have a lot of stuff with value you can trade that would be great, but a majority of people don’t have such a stash. Things can get ugly real fast.

This is the reason why I am learning to farm skills so that if the money I am holding would have nothing to buy then I can still have something to eat and live, and then be a witness to this part of our history. Don't worry, I am going to update you guys in this forum for developments.
Yes, we can go back to the barter system, that has no problem with me so that people will go back to being producers and providers. Don't worry about it, humans are known to be great improviser at least we have YouTube to watch for some guidance on many how-tos. Are we returning to becoming primitive soon?

Therefore, in such a doomsday situation you have to come up with a situation in which you can trade with people in order to survive. There are two solutions I can come up with, either using precious metals such as Gold & Silver or using Cryptocurrency. Considering that fiat currency is useless, Cryptocurrency might raise in value so that it can be useful as a means of trade as long as the Internet still exists which will most likely be the case.

In the doomsday scenario, I think everything will be worthless and storing gold/silver can be a problem as they can be the reason why some robbers can be after you. Nah, better store up foods and since we might not have any internet connection at that time then there is a problem connecting to our wallets. I am not so sure if people will even prefer to accept Bitcoin at this situation...maybe there is a bigger chance that foods can become the currency which is true yes in the barter system. Now, I still have to ask if CZ is willing to open Binance if there will be nuclear attacks all over.