Alternatives Like BTC Becomes Necessary As World Debt Reaches $253 Trillion

[blckhawk]

Even the article stated it, Bitcoin is not the sole solution to an increasing debt. Debt is indeed unsustainable, to the point that it seems like countries treat debt as nothing, and doesn't seem to care about paying them. What we need is a system that is sustainable, to prevent debt growth to actually solve it. Though Bitcoin could be a platform to transact faster without the hassle, and "might" make economic growth faster, it still depends on how the economy is run and Bitcoin does not guarantee an economic growth.

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[msarro]

Whenever we hear about any crisis then we immediatly recommend that bitcoin is the solution. Worsening Lebanese Crisis May Spark Bitcoin Adoption. Bitcoin is not like a magic stick which has solution for every of our problem, its a payment system just like fiat. If we move to bitcoin let say, you sure we dont need loans in that case?

[alyssa85]

Whenever we hear about any crisis then we immediatly recommend that bitcoin is the solution. Worsening Lebanese Crisis May Spark Bitcoin Adoption. Bitcoin is not like a magic stick which has solution for every of our problem, its a payment system just like fiat. If we move to bitcoin let say, you sure we dont need loans in that case?

Well said. Bitcoin is just a token of exchange, it is completely neutral. It can only affect the world based on how PEOPLE use it.

If people decide to set up a crypto bank and start practicisng fractional reserve banking, guess what? The debt being created will look exactly the same as in the fiat banks.

[Artemis3]

If everybody suddenly withdrew all their money out of the banks, closed their bank accounts and turned to crypto it would turn into a solution. The thing is, we are still too tied to those third parties so it became hard to actually untie ourselves from them. A change is possible, a change can happen now. The only problem is, a sudden change in economy like that means a change of our routine. People have to accomodate to another system, and that's uncomfortable for them.

If they did that "suddenly" as you say, only about 10% will be able to cash out. I don't call fractional reserve banking a ponzi scheme to look dramatic, the money doesn't exist.

If its done slowly, it would give time for banks to shrink, and likely most people will be able to cash out. Unfortunately bankruns occur when people get scared, and the truth about fractional reserve banking is very scary.

The current dominating school of economy needs people getting in debt, and inflation is part of their equation. Once you bring a "hard currency" that doesn't lose purchasing value, the magic begins.

I know you cannot trigger the critical mass for this panic, but as a thought experiment be aware that humanity as a whole has dug too deep into the fractional reserve banking scheme to be able to exit. The money simply isn't there. Of course they could "print" it, but before any significant amount of people is able to withdraw it, it will be valueless.

The transition towards Bitcoin seems to be occurring smoothly. Done it slow enough, the banks have tome to shrink, recall back loans, close locations, reduce personnel, etc. A post bitcoin world doesn't need that many banks and they are destined to shrink anyway. If the world DOES panic, those that are already into bitcoin will be safe, while those holding fiat will probably lose it or end out with about 10% of its purchasing power.

"Don't panic."

[Rengga Jati]

-snip-

I agree that Bitcoin is one of the possible solutions to overcome world debt and improve the global economic condition. For me, Bitcoin has some advantages that governments around the world need to consider. At least below the advantages :
1. Bitcoin provides easy+fast transaction
2. Bitcoin has measurable value
3. Bitcoin has been spreading out around the world
4. Almost all countries in the world have an interconnected internet network

*However, I disagree with your statement saying Gold is non-sense. It is proven that worth to be used al the time.

[Polar91]

I see, bitcoin is a good alternative but to consider that the debt is worldwide, I think it is still going to be not a good replacement because what backs bitcoin is still dollars, but if we would think of the fact that bitcoin is an investment platform, we could take advantage of it to retrieve and pay global debt. If and only if there is a person that will be tasked to trade and keep track of the market. Because for me, if people will utilize bitcoin, it is nonsense as debt should be repaid but in this case, it will not.

[acdc]

I think when the debt rises too high, people will find a more stable and reputable currency. It is possible at that point that bitcoin will compete with gold and oil to become an alternative currency.
However, because governments cannot regulate bitcoin, they will oppose bitcoin becoming an alternative currency.

[bitvalak]

It should mainly dollar FIAT money must be immediately removed because the primary cause of this debt is all dollar exchanges in various major countries. Bitcoin can be an option because with a limited amount, the debt of countries can be reduced to a safe percentage. Whatever happens state debt will not be exhausted because of the development and economic growth, but at least it can be minimized by using other alternatives.

[xZork]

This is clearly demonstrated in venezuela, when inflation and debt have increased, and people have chosen bitcoin and USD as a currency instead of government money.
It will be expanded worldwide if world debt rises and inflation cannot be controlled.

[BlackFor3st]

Our debt-ridden world economy continues to stack up more IOUs. According to recent estimates, the global debt is now around $253 trillion or 322% of GDP — a record high that Bitcoin is wagging its finger at.

According to a new report, the world economy is based on more debt than ever before — in fact, total world debt now comes out to over 3x global GDP.

To read the full article, check it right here

If you look at the numbers, it's already record-breaking for world debt.

As Bitcoin continues to be recognized and massively adopted worldwide, I just don't know if it's indeed a genuine alternative because of the record-breaking world debt of $253 trillion.

What would you think about this guys? Do you honestly think Bitcoin is gonna be the best alternative choice in this situation?

I would like to hear more about your reactions or opinion on this one. Cheers!

I cannot say that bitcoin will be the best alternative in this type of situation as there is a little chance that changing fiat to crypto will make the world debt into zero.

But if there is a way to make this happen then I am sure big governments will be the first to act in this matter but as what I saw right now most of the governments are adapting crypto slowly therefore it will still take a few years before we can see whether bitcoin can solve the world debt.

[Linkkoin]

If they did that "suddenly" as you say, only about 10% will be able to cash out. I don't call fractional reserve banking a ponzi scheme to look dramatic, the money doesn't exist.
Unfortunately bankruns occur when people get scared, and the truth about fractional reserve banking is very scary.
 If the world DOES panic, those that are already into bitcoin will be safe, while those holding fiat will probably lose it or end out with about 10% of its purchasing power.

Just like we observed during the bank crisis in Greece and Cyprus - you will have imposed upon you a small daily withdrawal limit (like $50) for your account by the authorities.

[BitcoinMoses]

Our debt-ridden world economy continues to stack up more IOUs. According to recent estimates, the global debt is now around $253 trillion or 322% of GDP — a record high that Bitcoin is wagging its finger at.

According to a new report, the world economy is based on more debt than ever before — in fact, total world debt now comes out to over 3x global GDP.

To read the full article, check it right here

If you look at the numbers, it's already record-breaking for world debt.

As Bitcoin continues to be recognized and massively adopted worldwide, I just don't know if it's indeed a genuine alternative because of the record-breaking world debt of $253 trillion.

What would you think about this guys? Do you honestly think Bitcoin is gonna be the best alternative choice in this situation?

I would like to hear more about your reactions or opinion on this one. Cheers!

Don't worry about the global sovereign debt of around $253 trillion US $Dollars.

Satoshi has created something to payoff all the sovereign debts of all the developing and poorest countries. Soon he is going to announce his latest project in Expo Dubai all about paying off the sovereign debts. What he is doing wright now, you cannot imagine. He has a plan but the central bankers  and their employers the financial elites sponsored mafias and thugs are previously persecuting him to stop his mission. I think the Bitcoin P2P system already they have over taken from the Bitcoin community that he created to cooperate each others.

 

[agentx44]

Our debt-ridden world economy continues to stack up more IOUs. According to recent estimates, the global debt is now around $253 trillion or 322% of GDP — a record high that Bitcoin is wagging its finger at.

According to a new report, the world economy is based on more debt than ever before — in fact, total world debt now comes out to over 3x global GDP.

To read the full article, check it right here

If you look at the numbers, it's already record-breaking for world debt.

As Bitcoin continues to be recognized and massively adopted worldwide, I just don't know if it's indeed a genuine alternative because of the record-breaking world debt of $253 trillion.

What would you think about this guys? Do you honestly think Bitcoin is gonna be the best alternative choice in this situation?

I would like to hear more about your reactions or opinion on this one. Cheers!

Bitcoin indeed can be a great help but we cannot be certain that it is the best alternative if ever the world would drown on its high debt that's increasing as years passes by. Bitcoin is a revolutionary currency but its function is to give convenience and chance of being wealthy and saving the world economy would be a very hard task for bitcoin to do. Instead, we should pay attention more on how we can aid all the debt the world currently has and start regulating bitcoin to atleast make little by little difference in terms of economy.

[Artemis3]

I see, bitcoin is a good alternative but to consider that the debt is worldwide, I think it is still going to be not a good replacement because what backs bitcoin is still dollars, but if we would think of the fact that bitcoin is an investment platform, we could take advantage of it to retrieve and pay global debt. If and only if there is a person that will be tasked to trade and keep track of the market. Because for me, if people will utilize bitcoin, it is nonsense as debt should be repaid but in this case, it will not.

No, bitcoin is backed in nothing. This means the USD can crash, while bitcoin retains its purchasing power. If the USD crashes, bitcoin will NOT be pulled down by it, quite the contrary, since both are untied, the price of bitcoin in USD simply skyrockets, but not because is climbing, just because the USD is crashing. To compare in that hypothetical scenario, think the price of bitcoin in EUR would remain (actually the USD can pull the EUR, both being fiats tied to the flawed school of Chicago economy).

Note that this has little or nothing to do with debt. If you do switch to the Austrian school, the debt is still there, but at least you could start paying it. However if you want to untie your money from the madness of the global economy, bitcoin is your best bet. Precious metals may also work, but their handling and online use sucks.

[Wysi]

Bitcoin can play a cameo in avoiding these debt issues but it cannot resolve this issue as we need to first figure out the reason why everyone is in debt as most of us own our debt to one particular family which controls the bankers throughout the world and need to focus on avoiding the debt as banks are just fooling us because they just showcase digital figure and if we all cashout at the same time then the bak might go bankrupt. Bitcoin cannot be a sole alternative rather it can help in bridging the gap if we have a plan to avoid debt.

[STT]

Theres two paths on debt like this, with debt to GDP only increasing recently with the virus events.   The sensible approach is to respect capital value and savings, this elevates prudence in the economy and savings.  The alternative is to keep creating new money to pay off the debt, which undermines capital value and any savings.
   The reason I think the virus demonstrates that we should have always saved money is natural negative events will occur, this isnt the last time.   Massive natural disasters will require exceptional moves by government, overspending is going to occur in that moment.   If the default scenario before the disaster has been to over spend and print money then we risk destabilizing all confidence in an economy by excessive measures.

Some say the debt falling over has to occur now, its impossible to unwind the QE.   I think what could occur is default on bad debt and this restores the natural use of money.    The more likely precedent is something like Russia did in the late 1990's, they wiped out the old Ruble and created a new Ruble at exchange rate of 10,000 to 1 so debts were soft defaulted.
    Its the same loss but with the hope nobody loses faith in the system, it worked for Russia because they have so many commodity assets, it not likely to work in a modern westernised service economy because these are non physical goods in alot of cases.  For example UK relies on alot of big insurance and finance work, crash that system and lose faith and they lose revenue and business hence massive deflation.