Will crypto lead to the next financial crisis?

[jaminunit]

No, Central banks will lead us to the next financial crisis.

They will blame covid or bitcoin like they blamed poor homeowners for the last one.

But f you look at the reverse Repo market you will see how close the USA is to going full negative interest rates and full inflation.  The rest of the world will catch that cold

[Sternbinder]

It is too early to talk about cryptocurrency this way.
I support the idea that cryptos are really promising financial instrument which will be in high demand in the nearest future and will have the opportunity to influence the global markets really dramatically. However, right now its capitalization is too small to make any tangible effect on the economy. You mentioned last economic crises but they were connected to the old instruments like stocks and modified old instruments like CDOs. Cryptocurrencies need to take the time in order to gain popularity and trust from the officials. Nowadays, China is already uses digital yuan which is the first step for cryptos to establish on the big global markets. I believe that when the USA admits using cryptos, their capitalization will skyrocket and after it the bubbles are likely to appear. However, it is not the matter of months, it will take several years for cryptocurrencies to become an integral part of global economy.

[awik p]

nothing proves the truth of that narrative. but one lesson that we can take when a crisis occurs, of course there will be a savior god who will be the center of attention of many people. just like yesterday's bitcoin, where many people forgot the pandemic and made it a new source of income for them

[valentine wheeler]

If the cryptocurrency collapses, it may cause a butterfly effect in the global economy, but this probability is relatively small.
 
The crypto market, especially Bitcoin, has become an unstoppable trend, and it cannot be ignored that the substance of Bitcoin is still very small compared to the world’s top 500 companies, not to mention the US stock and bond markets.

The collapse of the currency may cause serious financial problems for many families, but it will not affect the turmoil of the world economy.

[Kakmakr]

Looking at the past financial crises that happened, they all seem to have a few things in common, such as the mass adoption of a new financial product or technology (e.g. mortgage backed securities in 2008, dotcom boom in 2000). Given the extent to which institutions (and some influential figures) have been manipulating crypto recently, do you guys think this narrative is likely?

The past economic crisis was due to the wrongful and unethical actions of our Banking system and not something new that was introduced. The Fractional reserve banking practices that these Banks implemented was reckless and it caused a near financial collapse of the global economy. 

Bitcoin was developed as an alternative by Satoshi Nakamoto to reduce the control that these centralized Banks had over the global economy and people's wealth. The definition of Crypto currencies as a "Commodity" by the different governments, was an attempt to protect Fiat currencies and Banks and this is directly impacting the difference that Crypto currencies could have made on solving the problems created by the governments and the Banks. 

[kidbounty]

no, crypto will not trigger the next financial crisis. decentralization prevents all of that from happening. The financial crisis that occurred in the past is the fault of the current banking system. centralized system that makes it happen. so the chances are very low if you think cryptocurrencies can cause a financial crisis.re.

[jinneas]

Cryptocurrency will not cause a financial crisis. The financial crisis refers to the crisis that affects the entire financial system and the entire economy. It is not caused by cryptocurrency.
Cryptocurrency is outside of traditional finance. Even if the price fluctuates, the network security of cryptocurrency is still guaranteed. It will not have a great impact on the financial system and will not cause a financial crisis.

[Argoo]

Looking at the past financial crises that happened, they all seem to have a few things in common, such as the mass adoption of a new financial product or technology (e.g. mortgage backed securities in 2008, dotcom boom in 2000). Given the extent to which institutions (and some influential figures) have been manipulating crypto recently, do you guys think this narrative is likely?

It is unlikely that this conclusion is true. The indicated facts of the appearance on the financial market of any new financial assets during the period of financial crises is most likely a common coincidence. I do not think that the emergence and current development of cryptocurrency can provoke a new global economic crisis. In fact, cryptocurrency was created, among other things, after the global economic crisis of 2008 as a financial means to combat such crises. Yes, and a lot of time has already passed to influence the world financial system in this way, and the mechanism of such an impact is completely incomprehensible.

[Kiley33]

I don’t think it will lead to the next financial crisis. Although everyone knows about cryptocurrency now, most people still don’t know that cryptocurrency will not use cryptocurrency. Everyone's understanding of cryptocurrency is just investment, and it has not been the first payment place for daily consumption.

[justdimin]

Looking at the past financial crises that happened, they all seem to have a few things in common, such as the mass adoption of a new financial product or technology (e.g. mortgage backed securities in 2008, dotcom boom in 2000). Given the extent to which institutions (and some influential figures) have been manipulating crypto recently, do you guys think this narrative is likely?

Crypto is a way out of the financial crisis not a way to get into the financial crisis which is why I doubt that it really will impact the world in a bad way. Sure we have downs, look at the prices now, they are all 50% or so down from what they were and not looking good, but at least whenever dollar gets devalued we are there to pick up the slack and go up. That is why I think it is quite important to realize bitcoin is savior and not a monster.

Fiat on the other hand? It is a constant down for it, due to inflation whatever you have right now means you will have less in the future. Technically speaking I am making 3x more than what I used to make in my national fiat amount, but I can't live as good as I used to, thank god I had a job during pandemic as well but it is seriously horrible that even after making 3x more I am still living worse each year, think about what that means for fiat.

[teosanru]

Looking at the past financial crises that happened, they all seem to have a few things in common, such as the mass adoption of a new financial product or technology (e.g. mortgage backed securities in 2008, dotcom boom in 2000). Given the extent to which institutions (and some influential figures) have been manipulating crypto recently, do you guys think this narrative is likely?

Maybe Yes, Maybe No! Crypto is pretty different from stock markets actually. You see we are already 60% down from the all-time high, for some people, This is a big crash in itself also if you look at this in terms of the stock market it looks huge, and therefore a big crash might have already happened. And what happened after the 2000 and 2008 crash was just that the boom of things ended, we know that .com companies still enjoy the highest valuations, and mortgage-backed securities still exist. So crypto would go on too after this kind of crisis it's just that these shady currencies like Shiba Inu created as a joke would be no more existing in the market.

[Caldear]

The price of crypto currency fluctuates and the price plummets may cause the market to collapse, but it will not cause a financial crisis.
Crypto currency is used more as an investment, and there is no widespread transaction in daily life, and banks will not use crypto currency, which has no great impact on the financial crisis.

[TechHypes]

When you look back the last few decades and you look at all of the financial crises that happened, you know, they all have a couple of things in common. And one of them is the mass adoption of a new financial product or a new technology that’s not very well understood. Crypto

[ROSERTY]

Cryptocurrency will not cause a financial crisis. Most of the financial crises are caused by the excessive printing of fiat currency. Bitcoin is small in scale and a small investment product, and its total amount is limited. It will not be issued at will according to demand. It can effectively prevent inflation and will not affect the economy and finance.

[Ausgewielt]

I think there is still possibility for bitcoin price manipulation as bitcoin is not yet spread evenly. But I don't think that the title of your post is right. In my opinion government always take full control on country economy. Government can make any regulations that may prevent financial crisis. Actually Bitcoin is just a part of factors that influence economy. For now, I don't see any bad global impact that may caused by bitcoin, actually I think bitcoin can help many new business emergence. I believe that if Bitcoin spread evenly then there is no institutions who can manipulate bitcoin price.

[defi-Dany]

 I believe that if Bitcoin spread evenly then there is no institutions who can manipulate bitcoin price.
[/quote]

Bitcoin is evenly distributed, which is impossible. I don't know how many years it will take to wash away the whale's large amount of Bitcoin.

[Liamttw]

The financial crisis was not caused by cryptocurrency, but by the pandemic and over-printing more money to control the pandemic.
Cryptocurrency will not cause a financial crisis. Not everyone knows about cryptocurrency. It is small in scale and a small investment product, and it is not used on a large scale all over the world and will not have an impact on the economy and finance.

[Lorence.xD]

How can it lead to the next financial crisis if it's not even widely adopted, the government of some countries even actively prohibit and discourage owning bitcoin and other cryptocurrency so I don't see it leading to a financial crisis, and if there's one, I think that we will probably see bitcoin and other cryptocurrency as the solution to that so quite the opposite I think.

[paxmao]

Not really. Lets say that "bitcoin is in a bubble" - the amount of bitcoin in the economy compared to other magnitudes is insignificant. Just for the shake of comparison, and I do not consider Bitcoin like tulips, when the crash of the tulips bubble happened, the economy of the country itself did not suffer much. An unlikely massive crash of bitcoin as of now would not make a significant dent on the worlds economy - albeit it would in individual economies including mine.

[Kong Hey Pakboy]

Not really. Lets say that "bitcoin is in a bubble" - the amount of bitcoin in the economy compared to other magnitudes is insignificant. Just for the shake of comparison, and I do not consider Bitcoin like tulips, when the crash of the tulips bubble happened, the economy of the country itself did not suffer much. An unlikely massive crash of bitcoin as of now would not make a significant dent on the worlds economy - albeit it would in individual economies including mine.

It's not really a good thing to compare bitcoin to a bubble because bubbles work different and have a different effect, th Tulip Mania didn't affect the economy because rich people are the only ones that buy it and I don't think that not every Dutch bought it and there's the Housing Bubble of 2008, it did affect the economy. I don't think that bitcoin is going to cause a financial crisis because as @ paxmao said, it's not a lot and it represents only a small percentage of the market.