Will crypto lead to the next financial crisis?

[jossiel]

There will be no effect for now but I know as time goes on, the world government will have to scrap the idea of different currencies majorly the Fiat then the adoption of cryptocurrency in making payments and transactions will come in and there will be no need for the use of Fiat. The world system of Fiat as a form of money will soon end and I bet everyone to prepare for the new change of crypto system of money transactions.

It might end soon but we don't see that happening anytime near today.

What would be the next payment? I doubt that they're ready to adopt bitcoin and other cryptos that they prefer. Many of them still can't the fact that this is money and investment that works perfectly for individuals that have been in here for a long time.

[pinggoki]

That could be the case, considering most of the people nowadays are still in favor of fiat over cryptocurrencies. Which at the end of the day is the very same reason I don't believe crypto could ever cause a financial collapse. The adoptions are as slow as they go and no drastic measures aside from the El Salvador bitcoin adoption have been ever made that could cause discord amongst cryptocurrency fanatics and fiat users

I don't think that crypto currencies are going to be part of the next big financial crisis. There are two big areas which worry me and they are independent of cryptos. The first alarming area is the ever rising debt levels in the world. Most of the western countries run a deficit and there is no end insight. Costs and spending are rising faster than the economic growth and if we include the demographic change than rfe future is not looking good. And the second big area to worry about is ever rising real estate prices. Interest rates are so low that taking out loans is the only chance to buy an apartment. But real estate price never rose forever in the past. There has to be a correction eventually which will turn all these loans bad. In my opinion the next crisis will either be a sovereign or a real estate crisis.

Every crisis is preceded by an unfortunate event that lead the people to desperation. In this case it is the rising debt of the world against the dwindling intrinsic value of the US dollar. Should a massive adoption happen in the near future, we need to strap ourselves for a bumpy ride because price decline and financial crisis for the people who are into fiat is going to happen.

[Rasa nanas]

The growth of crypto is something to celebrate But the impact of crypto on the world economy is negligible. Compared to other industries, crypto is still very young and small. At the moment, cryptocurrency is probably the place where some people can avoid the economic crisis caused by the covid pandemic.

Many people are starting to invest in crypto because of the faster growth in value than other investments. This pandemic made most people realize that investment is very important. This pandemic has made a lot of people out of work, people who invested in the past are very lucky because the investment really helped them in difficult circumstances like this.

yes a lot of people invest in crypto because the returns are big, but the big returns are also accompanied by big risks because the value in crypto is very volatile. because the risk accepted is very high, many people are also reluctant to invest in cryptocurrencies. the point is not everyone is willing to accept a big risk to get a big return.

[alviemery96]

Bitcoin is not integrated into the global economy like other things related to finance. The global economy is still struggling because of the pandemic, but Bitcoin has grown during most of the pandemic. So, I don't think that cryptocurrencies can cause the next global financial crisis. Proof that BTC price is skyrocketing right now and the economy affected by the pandemic is gradually recovering. recovery but there are still a lot of problems to solve so cryptocurrencies don't lead to a financial crisis.

[romero121]

Financial crisis around the globe happens altogether in a cyclic pattern on specific time interval. The last one happened during the year 2008, and similar to such crisis happened in recent years due to the pandemic. Individual countries face financial crisis as a result of poor management and lack of proper planning. This can be overcome with the proper analysis and execution than just implementing for name sake. Crypto isn't gonna lead to crisis, and more governments have this fear. The right one's have taken it as a tool to come out of the crisis.

[LUCKMCFLY]

Financial crisis around the globe happens altogether in a cyclic pattern on specific time interval. The last one happened during the year 2008, and similar to such crisis happened in recent years due to the pandemic. Individual countries face financial crisis as a result of poor management and lack of proper planning. This can be overcome with the proper analysis and execution than just implementing for name sake. Crypto isn't gonna lead to crisis, and more governments have this fear. The right one's have taken it as a tool to come out of the crisis.

I agree with you, because we think that the world crisis is taking place in parts in different geographical places, each country after the pandemic has affected in some way, some more than others, however the most prosperous countries have found their exit faster than others, for the countries of South America being in pandemic crisis or not, there are many like Venezuela that do not see the light, the opportunities are running out, there are immigration problems that affect other countries and everything becomes more acute, causing poverty to increase, spending resources for many governments and especially some liabilities for the countries that are recipients of them, thus causing total Xenophobia.

[Ozero]

It is unlikely that cryptocurrency is capable of leading the world financial system to another crisis. Recently, at one of the summits of the G20 countries, when discussing the problem of cryptocurrency, they came to the conclusion that cryptocurrency does not pose a threat to global financial stability. The state also constantly keeps the issue of cryptocurrency under control. If they see any threat from cryptocurrency, they can solve any problem with general regulation measures.

[Kimonoe]

It is unlikely that cryptocurrency is capable of leading the world financial system to another crisis. Recently, at one of the summits of the G20 countries, when discussing the problem of cryptocurrency, they came to the conclusion that cryptocurrency does not pose a threat to global financial stability. The state also constantly keeps the issue of cryptocurrency under control. If they see any threat from cryptocurrency, they can solve any problem with general regulation measures.

indeed the government does not seem to have lost control of everything including cryptocurrencies, they just make the rules and everyone has to follow them. and I think crypto is not a threat to the world economy, because crypto does not interfere with other business fields, and is purely independent even though many investors come from stocks that switch to crypto

[noormcs5]

Why would it lead to? It's making everyone some money but at the same time it also makes people stay inside instead of coming back to the mainstream fiat based economy so I don't see how it's going to be that way for cryptocurrencies to cause a crisis, on the other hand, I think that we should look out for constant money injection in the economy through stimulus checks because they will cause hyperinflation.

There will be no effect for now but I know as time goes on, the world government will have to scrap the idea of different currencies majorly the Fiat then the adoption of cryptocurrency in making payments and transactions will come in and there will be no need for the use of Fiat. The world system of Fiat as a form of money will soon end and I bet everyone to prepare for the new change of crypto system of money transactions.

The government may have nothing to do with the next financial crisis. The stable coins specially USDT is still a threat and if any action is taken against it, it would surely turn into the world next big financial crisis.

https://www.coindesk.com/policy/2021/11/30/us-policymakers-are-still-evaluating-stablecoins/

[Alert31]

Global crisis always present even without crypto. It is inevitable scenario in our economy especially in country with poor governance and and there is widespread corruption which lead to financial crisis and and economic collapse. Cryptcurrency as a new world currency is not possible because not all countries legalize it and doesn't want a currency out of their control ,so it will not lead to the next financial crisis.

[Wipeout2097]

If we think practically still require crypto instruction to the larger part of the populace of the world.People still dont know crypto can boom the economy.It isn't indeed legitimate in numerous nations and its esteem isn't indeed steady due to tall instability so the world would certainly attempt and be subordinate on it. There perhaps a emergency within the crypto world at the minute but that does not cruel genuine world will moreover encounter the same thing.Crisis are each where we all know how fiat cash confront the emergency numerous times so usagee of crypto will not create emergency but forbidding and not legalizing the crypto it'll .

[RealMalatesta]

The government may have nothing to do with the next financial crisis. The stable coins specially USDT is still a threat and if any action is taken against it, it would surely turn into the world next big financial crisis.

https://www.coindesk.com/policy/2021/11/30/us-policymakers-are-still-evaluating-stablecoins/

I definitely agree with this. They are holding 70+ billion dollars in their hands, sure they are investing it here and there and even making some profit with it I am sure but we are trusting 70+ billion dollars to a company and that's it. The moment that company collapses for any reason would mean that all of that money will be gone and all of USDT will worth zero and that crash could hurt crypto world unlike anything else.

It could be as big as anything we have seen. However, I do not agree that it may create a big financial crisis, in 2020 and 2021 just USA printed out 4+ trillion dollars, and yes it has a huge inflation compared to older days but they are still living, 70 billion gone would upset us, but it would not matter to most big nations at all. We just need to take care of ourselves and that's it. If we can survive that as crypto world, then we can survive anything.

[realcrypto]

From the time immemorial there have always been Financial crisis even before bitcoin was developed. The Financial analyst predicting the financial crisis should not mention bitcoin at all. Bitcoin will not the cause of the economic meltdown.

[habebe]

By the way, we don’t know if that the price of bitcoin is high or low means whether it will increase of course you deserve to join an investment like bitcoin right!  however, you really need to earn so that you can save a lot and you really need to make sure that you can invest little by little just in case or maybe you can hold back first regurgitate what you can invest and try to wait or persevere before  join so you don't regret it later, you know what i mean.  , investing is like a gamble that you do not know when you will win or lose so just be careful before joining an investment because we do not know if you need the right destination and must trust immediately make sure you really know how to invest right.

[Nuraiuii]

The financial crisis is caused by inflation caused by banks' random printing of money, and the small market value of Bitcoin will not be issued at will, and it will not have an impact on the financial crisis.

[STT]

(e.g. mortgage backed securities in 2008, dotcom boom in 2000)

These are both FED based problems from easy money.  The MBS was never traced back to government actions but when you subsidize an industry you allow such bubbles to occur.  The solution from 2008 and 2009 going forward was to entirely take over the industry altogether, the majority of private US housing debt is now owned by government supporting false interest rates in line with FED policy, QE and so on.
   None of this is capitalism, its politics and central government distorting markets for political reasons.   The 'greater good' argument causes alot of harm in side effects.    Nobody has admitted as much, the waters are kept muddy because reform would be costly to whichever party forwarded such actions as required.
   'The can kicked down the road' is a phrase for the eternal problem which eventually does result in a crash or "financial crisis" as OP mentions.  Not because I want it, my commentary would be seen as radical and rejected as such but the basic elements of economics reflect natural dynamics that eventually will deny even the iron grasp of government control.   Same reason why communism is a failure and so on, not because of my or anyone elses personal preference but it just doesnt naturally work and eventually results in failure, collapse and death in the population from starvation in the extreme.  Communism is willing to take that risk, suffer that loss for its continuation of the elite but I do hope we are better then that and able to correct and reform mistakes before the worst occurs

Crypto is not the cause of a problem to finance private, corporate or national interests, its a self adjusting system with no force on the economy except through the free choice of users.  There is no subsidy to its operations, no taxes or laws that deny freedom to use alternatives nothing that resembles a negative not already reflected in its free market price.  Everything has faults, the worst systems are rigid and wont allow any reflection of failure till its too late to adjust course from a crash; this is not the nature of BTC imo

[marine4u]

I consider the crisis of the contemporary economy to be the collapse and degeneration of the entire government system and the collapse of government intermediaries, central banks, treasury... It's not simple.  is merely one possible causative factor.  Inflation risks are seriously increasing amid the heavy impact of covid19, which shows that the current currency cannot meet current requirements and that entails a delayed response to issues urgent in the future.  If bitcoin and cryptocurrencies are supposed to be the reason for that then it is completely untrue.

[paxmao]

Very unlikely. While I do not believe bitcoin is tulip-mania but there is a precedent for the sudden drop on what at the moment was an speculative, but quite minoritarian asset and that is effectively the tulips in the 17th century, in Holland. It did not provoke a crisis at all. Fortunes changed hands, a few got rich, a few lost their fortunes and other than that...life went as usual.

Now, this is a completely different thing when a crisis strikes to a widely distributed assets such as mortgages or large banks. These are "too big to fall" and do influence the economy. Bitcoin is not even near that.

[kendedese]

From the time immemorial there have always been Financial crisis even before bitcoin was developed. The Financial analyst predicting the financial crisis should not mention bitcoin at all. Bitcoin will not the cause of the economic meltdown.

yes the financial crisis existed long before bitcoin existed. I actually think the opposite, I think bitcoin will reduce the impact of the financial crisis because bitcoin is able to improve a person's economy. the problem now is that not everyone agrees with this, many people think bitcoin is a high-risk investment and can cause losses in a very fast time.

[arditiyan]

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 still difficult if crypto can be the cause for the crisis. I think this is still uncertain because the power of crypto in the world is very small, the crypto market is still easily shaken by small issues compared to money in all countries or companies that are very different. so the narrative I think is irrelevant