US Debt Default: Good or bad for crypto?

[bayudndy]

The US national debt problem is a complex and longstanding one. So if the problem is not resolved satisfactorily within the given time frame, there is the potential for serious economic consequences and a host of other problems. Regarding Bitcoin and its price dynamics, it is difficult to determine if these news will have a drastic effect on it, but one thing is for sure: market sentiment will become highly volatile, and investors will become more volatile. disorderly kiss. This is really not good at all.

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[Hamza2424]

A US debt default would have huge implications for the global economy and financial markets, including the crypto market. According to some analysts1, a US debt default could make Bitcoin soar by 70% as it becomes a safe-haven asset. However, others argue that a US debt default could also trigger a sell-off of risky assets, including cryptocurrencies.

I know I am responding late but I think dear you are a bit Misunderstood I know there is always opposition to any narrative but on the US default almost everyone was convinced that it will be good for Bitcoin but unfortunately, SU increased their Debt limit, and now every after the Pause on the Intrest rate market is falling down to a major support level of 25K. In my views the increase in the debt limit also made a bit positive impact on the Bitcoin and overall market because it realized everyone that US has only one solution to the problems Print more.

[NotATether]

We could say that one way or another the national debt will "blow in the US' face".

It indeed has the potential to do that because although a default was averted several days ago, if it happens at any time, the US will suddenly no longer have (as much) money to spend on stuff. It's not like the Federal Reserve can print their way out of this problem, because there's no point in printing more money after a country has already defaulted on its debts. Federal contractors will be the first companies to feel the hit, and sooner or later, it will spread to all corporations and then consumers, and cause a recession as prices skyrocket.

[sana54210]

We could say that one way or another the national debt will "blow in the US' face".

It indeed has the potential to do that because although a default was averted several days ago, if it happens at any time, the US will suddenly no longer have (as much) money to spend on stuff. It's not like the Federal Reserve can print their way out of this problem, because there's no point in printing more money after a country has already defaulted on its debts. Federal contractors will be the first companies to feel the hit, and sooner or later, it will spread to all corporations and then consumers, and cause a recession as prices skyrocket.

I mean FED "can" print their way out of this one because that's what they are used to most of the time. I think it would be scary for Americans because they think dollar would devalue, and yes it would be against items you buy, so you will spend more, hence inflation, but if they do that, other nations would probably do even more in that case.

US debt will be an issue in the future but considering how much they already owe and it hasn't been an issue so far, I think people are fine with US debt, they can hold it, they know it will be paid one day, they take 3 trillion debt, pay 1 trillion of old ones back, so you always get paid back eventually. Don't know how long this can continue, but it has been for decades and for some reason nobody has ever said anything so far.

[Abiky]

It indeed has the potential to do that because although a default was averted several days ago, if it happens at any time, the US will suddenly no longer have (as much) money to spend on stuff. It's not like the Federal Reserve can print their way out of this problem, because there's no point in printing more money after a country has already defaulted on its debts. Federal contractors will be the first companies to feel the hit, and sooner or later, it will spread to all corporations and then consumers, and cause a recession as prices skyrocket.

Exactly. We could say the US debt is like a ticking time bomb. It could detonate anytime when you least expect it. Raising the debt limit would only delay the bomb. But it cannot be avoided. Once it detonates, the US and other countries will suffer badly. It's a good thing Bitcoin was created independent from a central authority (central bank, government). Else, it would've died already.

A debt default will only make crypto (especially Bitcoin) stronger in the long run. It's likely BTC market prices will be in the "millions" once this happens. Altcoins usually follow BTC's footsteps, so they will keeping rising like crazy. I'd suggest anyone to put their money into BTC and other "blue chip coins" to protect themselves against a debt default. I'm pretty sure the cost of living in the US and other countries will rise once this happens. No one can predict the future, so let's hope for the best. Just my opinion

[smile1218]

The potential US debt default could have both positive and negative impact on the crypto market. A default could lead to economic downturn, which may drive investors towards alternative assets like cryptocurrencies. A default could further erode trust in traditional financial systems, potentially leading more people to explore decentralized alternatives. A US debt default could also trigger a broader financial crisis, which could lead to a widespread sell off across all asset classes, including cryptocurrencies. If US government were to take measures to restrict capital flows, it could limit the ability of investors to move funds into the crypto market.

[Texac]

The potential US debt default could have both positive and negative impact on the crypto market. A default could lead to economic downturn, which may drive investors towards alternative assets like cryptocurrencies. A default could further erode trust in traditional financial systems, potentially leading more people to explore decentralized alternatives. A US debt default could also trigger a broader financial crisis, which could lead to a widespread sell off across all asset classes, including cryptocurrencies. If US government were to take measures to restrict capital flows, it could limit the ability of investors to move funds into the crypto market.

But in the long run, it will definitely be a good thing for bitcoin.  there would be a momentary panic if the US government defaulted on its debt and caused a global economic crisis.  but in the long run, people will also be looking for solutions to find shelter, and most likely, besides gold, bitcoin can be an option as bitcoin's advantage can become a safe haven. 
This topic was created before the news of the US government default, and nothing happened, but it will not rule out the possibility that they will default in the future.

[Lamkuthang]

Exactly. We could say the US debt is like a ticking time bomb. It could detonate anytime when you least expect it. Raising the debt limit would only delay the bomb. But it cannot be avoided. Once it detonates, the US and other countries will suffer badly. It's a good thing Bitcoin was created independent from a central authority (central bank, government). Else, it would've died already.

It is undeniable that US debt has indeed become a sensitive issue in the global economy in the near future and it is also possible that US debt management policies will also affect economic stability and the dollar exchange rate to some extent. and it's true, as you have said, this cannot be underestimated/ignored because in the end it has the potential to have a negative impact on the global economy.

[trendcoin]

If the United States defaults on debt, the idea that the dollar is an unreliable currency becomes more prevalent. In this case, the dollar begins to depreciate and the commodities and valuable assets purchased with dollars begin to appreciate. I think in such a situation a unique opportunity arises for cryptocurrencies. However, no development has such sharp distinctions as black or white. In such a case, I think we will have the possibility of encountering some positive results and some negative results, but we will probably encounter positive results in general.

[Abiky]

The potential US debt default could have both positive and negative impact on the crypto market. A default could lead to economic downturn, which may drive investors towards alternative assets like cryptocurrencies. A default could further erode trust in traditional financial systems, potentially leading more people to explore decentralized alternatives. A US debt default could also trigger a broader financial crisis, which could lead to a widespread sell off across all asset classes, including cryptocurrencies. If US government were to take measures to restrict capital flows, it could limit the ability of investors to move funds into the crypto market.

It's difficult to predict what will happen after a US debt default, especially when crypto often reacts to mainstream events. A default would take crypto market prices all the way down the drain. How long will the effects last is a mystery. Many are saying crypto will recover in the long term, due to being an independent asset class.

You could cash in big time if you bought crypto during the dip and sold it a later time. Each day BTC is proving itself to be a mature store of value, so who knows how far will it go? As long as decentralization is preserved, we should have nothing to fear. Just my opinion

[slapper]

The potential US debt default could have both positive and negative impact on the crypto market. A default could lead to economic downturn, which may drive investors towards alternative assets like cryptocurrencies. A default could further erode trust in traditional financial systems, potentially leading more people to explore decentralized alternatives. A US debt default could also trigger a broader financial crisis, which could lead to a widespread sell off across all asset classes, including cryptocurrencies. If US government were to take measures to restrict capital flows, it could limit the ability of investors to move funds into the crypto market.

It's difficult to predict what will happen after a US debt default, especially when crypto often reacts to mainstream events. A default would take crypto market prices all the way down the drain. How long will the effects last is a mystery. Many are saying crypto will recover in the long term, due to being an independent asset class.

You could cash in big time if you bought crypto during the dip and sold it a later time. Each day BTC is proving itself to be a mature store of value, so who knows how far will it go? As long as decentralization is preserved, we should have nothing to fear. Just my opinion

You're correct: a US debt default would probably cause cryptocurrency prices to plummet all the way to the bottom. Well, aren't the true "diamonds in the rough" there, after all? Long-term cryptocurrency recovery is a possibility you brought out, and that is now a concept I can support. Bitcoin, the "golden child" of cryptocurrencies, has displayed impressive fortitude (hello, 2020 fall and recovery!). Additionally, because it is a "decentralized hero," it is less vulnerable to conventional market downturns

Do you believe in the idea of buying while the market is down and selling later on? Classic! It resembles the crypto industry's "Black Friday" in certain ways. The sky is the limit as far as BTC's potential for growth is concerned. That will only happen, of course, if we manage to avoid the dreaded "centralization devil"

[Abiky]

You're correct: a US debt default would probably cause cryptocurrency prices to plummet all the way to the bottom. Well, aren't the true "diamonds in the rough" there, after all? Long-term cryptocurrency recovery is a possibility you brought out, and that is now a concept I can support. Bitcoin, the "golden child" of cryptocurrencies, has displayed impressive fortitude (hello, 2020 fall and recovery!). Additionally, because it is a "decentralized hero," it is less vulnerable to conventional market downturns

Do you believe in the idea of buying while the market is down and selling later on? Classic! It resembles the crypto industry's "Black Friday" in certain ways. The sky is the limit as far as BTC's potential for growth is concerned. That will only happen, of course, if we manage to avoid the dreaded "centralization devil"

BTC can never be stopped. A US debt default will only be a temporary setback for the crypto market. Long-term speaking, things should go back to normal. It's likely BTC and alts will reach a new ATH. As you've said before, "the sky is the limit". We should take the opportunity to buy coins at a huge discount before its too late. Right now, the US House suspended the debt ceiling, so there's no need to worry about a default until 2025.

If you act fast, you'll be able to protect yourself against a decaying global economy. I'd suggest you stock up on BTC and Gold as they're often a good hedge against inflation. I'm pretty sure "The FED" will print more money once the government goes on default. No matter what happens in the future, we could say crypto has already won in its battle against banks. Who knows if BTC becomes the next reserve currency of the world? Just my thoughts

[Carmel11]

I would say its good for crypto as US investors will look for alternative investments.