Will crypto lead to the next financial crisis?

[Davidvictorson]

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 tech bubble had a lot of institutional money in it, Bitcoin not so much, in fact it is only starting. So, claiming that cryptos will lead to the next financial crisis could take place but not until at least 5-6 years later from when institutional money has started to flow in. Therefore, as more and more of these self proclaimed BTC crash experts proliferate it is safe to assume that a bottom is forming.

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[CDC AP]

It will not cause a financial crisis. After all, the size of Bitcoin is very small, and it is a small investment product, which will not affect the economy and finance, because Bitcoin is insignificant for the economy and finance. At present, there are also some companies investing in Bitcoin. When Bitcoin plummets, there will be some losses for the company, but it will not have any major impact on the economy

[Rasa nanas]

It will not cause a financial crisis. After all, the size of Bitcoin is very small, and it is a small investment product, which will not affect the economy and finance, because Bitcoin is insignificant for the economy and finance. At present, there are also some companies investing in Bitcoin. When Bitcoin plummets, there will be some losses for the company, but it will not have any major impact on the economy

when compared to the world economy bitcoin is a small investment, but bitcoin will continue to grow as more and more new investors invest in bitcoin. We all know that the price of bitcoin continues to grow and the market cap continues to increase, that way bitcoin could be something big in the future.

[goku19]

The cryptocurrency market capitalization is very small compared to the rest of the economy so it will not be able to affect the overall economy. Throughout the world's economic history, recessions have come from holes. Cryptocurrencies look very bright, transparent so I think crypto is the solution to the economy instead of seeing it as a risk.

[Ngemmeng]

The cryptocurrency market capitalization is very small compared to the rest of the economy so it will not be able to affect the overall economy. Throughout the world's economic history, recessions have come from holes. Cryptocurrencies look very bright, transparent so I think crypto is the solution to the economy instead of seeing it as a risk.

if you compare it with the world economy the crypto market capitalization is indeed much smaller, but if you compare it with the economy of a country the crypto market capitalization can be said to be very large and even exceed it. even the market capitalization of bitcoin alone can pay off the foreign debt of several countries, meaning that crypto has the potential to boost the economy of a country and even the world economy.

[laredo7mm]

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?

To make a financial crisis market cap should be larger. Mortgage-backed securities in 2008 market size were almost 4 trillion. At that time this was quite a big figure for the world economy. The Crypto market is still new and someone could crash the market with only several thousand BTC.

Right now this may not be the reason for a financial crisis but in the near future, it could be. The more we are heading towards web 3.0 the more crypto adoption will begin. This could attract big institutions which could manipulate the markets more frequently.

[tyz]

It will not cause a financial crisis. After all, the size of Bitcoin is very small, and it is a small investment product, which will not affect the economy and finance, because Bitcoin is insignificant for the economy and finance. At present, there are also some companies investing in Bitcoin. When Bitcoin plummets, there will be some losses for the company, but it will not have any major impact on the economy

All cryptos worth $2+ trillion, so it is not really small. Nevertheless, crypto will not lead to a financial crisis. There are several reasons for this. Institutional investors and banks are only investing in cryptos with a very small portion, if any.  Moreover, compared to other assets, relatively few cryptos are bought with loans.
If I see a financial crisis, it will be caused by other asset classes, for example real estate, which is massively overvalued almost everywhere in the world. A good example is China, but also Australia, the US and many developed countries in Europe.

[atjiat]

It seems to me that today the world has not yet emerged from the economic crisis that began due to the coronavirus.  in many countries, the authorities are very actively beginning to transfer the population to non-cash payments in order to increasingly begin to control people.  Perhaps cryptocurrency projects, such as Junca Cash, which are designed to make a person's dreams of anonymous and decentralized money transfers a reality, will make us happier.

[Argoo]

Cryptocurrency cannot yet even theoretically lead to a global economic crisis. States are watching this rather closely. Therefore, at the recent summit of the G20 countries, they considered the impact of cryptocurrency and came to the conclusion that it does not yet pose a threat to the stability of the global financial system. If they further acknowledge such an impact, then the measures against the cryptocurrency will be quite tough.

[STT]

The reason in 2008 that housing caused a crisis in banking was it was used for tier 1 capital, core to the basis of all the banks lending was the value of this highly rated AAA debt.  Crypto in no way compares to level of assured value, its speculative much like any commodity trading the pricing is volatile and subject to change at any given moment; as such losses are much in the vein of caveat emptor.