I know many people in cryptos as a possible "insulator" against a coming crash. What are your thoughts? Might cryptos also crash? Caller asked me about this
I know many people in cryptos as a possible "insulator" against a coming crash. What are your thoughts? Might cryptos also crash? Caller asked me about this
The revolution has stated and the downfall of the American Dollar has begun a monumental shift in economic powers. The jester in the card game here though is the advent of the uprise of cryptocurrencies, their inherent powers and the value they have already gathered over the passed nine years.
Certain regions of the globe will be more affected than other and the one already using cryptos will be a lot better off, so will the areas where their fiat will keep their value longer allowing them to sustain the transfer of economic powers from fiat to cryptos. Only the ares where there is not internet will still be using some form of fiat and good ol'trading!
Great opportunity for sharing, thanks a lot for this post! Namaste :)
I do agree with you there.
However, on the other hand, i would ask differently: have crisis ever stopped? Nop, and not meant to do so at all. It is a cycle in which each time someone who has it "under control" uses it to "makes money".
But whether the Crypto-currencies are the solution fingers crossed. The market cap for crypto is still too small to substitute the dollar, yet ;). At least it is decentralised so nobody will start a war against a dollar competition.
ahh economics....
It's not a question of if but when. Just look at the history of modern societies.
I think crypto will not crash.. however may be some bearish trend can come. Crypto is the future of the world, it will not crash
@davidpakman about crypto cool
I think in all cases people have to be smart with their investments and not put all of their eggs in one basket. I think long-term, the crypto's built around platforms like Steemit will outlive those purely for trading. There will simply be more value in having a system instead of just a coin. However, as long as supply and demand maintains and demand doesn't dry up...I don't see the industry as a whole just falling off a cliff. People see that there's too much money to be made here. I don't think blockchain technology is going anywhere. Certain coins may die though
The stock market isn't poised to crash anytime soon (except for the flash crash that will occur when Wall Street figures out they're not safe from Trump's destructive flagellations), and while crypto will be a rougher ride, it's still in a general upward trend as it comes into its potential.
However, most cryptocurrencies are like precious metals in that they're inherently more crash-prone than fiat currency. With fiat currency, there are monetary authorities that can take policy actions to stabilize price fluctuations and prevent inflationary and deflationary spirals.
With something like gold or bitcoin, there is very little (transaction fees, mining effort, but look how little they seem to matter to price!) to arrest the self-reinforcing ascent, where everybody buys and holds, since the price is rising, and since few are selling, the price continues to rise.
But there is also very little to soften the inevitable self-reinforcing descent, where everybody sells, and since few are buying, the price continues to drop, causing more people sell in order to keep from going bust.
If you're afraid of a crash of some kind, invest in assets, not currency, that will keep their value in such cases.
I think you are bang on saying "overvalued" is a relative term. Being from Canada we have very similar high housing values popping up in places like Toronto and Vancouver, i.e. what you get for your money is fairly sparse. However this is one of the first times we have thought of Cryptos in a similar "overvalued" sense. There is likely much problem with the debt loads that North Americans tend to carry in terms of the economics than property or stocks or cryptos being severely overvalued.
There will be NO stock market crash. The DOW is going to 30k and beyond. Bitcoin is going to $20k and BEYOND. People have nowhere to put their money in. Gold will be going down.
CYPTO IS FUTURE......................
Governments need to adapt to cryptocurrency now!
https://steemit.com/cryptocurrency/@xsid/keep-moving-or-die-governments-will-need-to-adapt-to-cryptocurrency
they really should. but i heard some counties are adapting it slowly...
There's a lot of wishful thinking, faulty assumptions and air-headed analysis from people who promote Bitcoin. They make ludicrous statements like "bubbles are impossible with Bitcoin" of "Bitcoin isn't a commodity", which should serve as a warning that these people shouldn't be taken seriously.
If you buy Bitcoin, you aren't investing - you're gambling. I'm not saying that you shouldn't do it, but please gamble responsibly.
I think our country has already crashed drive through Baltimore, Detroit, Chicago, Philly, Camden, and many other broke communities in this country and it look s like a 3rd world country. Our infrastructure is horrible and our retail stores are closing everyday. America is going through withdrawal and it will get worst before it gets better.
The blockchain encryption has the potential to take people out of poverty like never before, ever. And that is very powerful.
Other then being outlawed...I do not see why crypto would be an unsavory investment.
I do not know I hope you get the answer
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Better review some of those survivalist vids on youtube just to be safe.
Would depend on the nature and extent of the crash...when the mortgage derivative market crashed 10 years ago...the world governments had to open up the spiggots to pump currency into the world markets or else we would have deflated into a black hole...so now we sit on trillions of debt dollars subsidized with near to zero interest rates waiting for it to unwind...if it's something that happened sooner than later...I would guess crypto might suffer if the rush to "safe aasets" meant US treasuries....gold...the mattress....however...if a few years out from now...crypto is much more accepted...It may become one of the "safe havens" people rush to...
Good Post 👍👍👍
It is coming soon..........
This is the first post I've seen by you and it was very informative. Just curious, if you believe cryptocurrencies are a bubble, are you invested in them with that risk present?
no, crypto will last longer than paper money and metal used today. In fact, I think that in the next few years, every country has used their own crypto to perform various economic transactions @davidpakman
The entire point of using distributed ledger technology is to allow for the creation of a decentralized and trustless system not reliant on a central authority. A national cryptocurrency under the control of a central bank is a waste of resources.
Many cryptos with no use cases will die. some with bad technology like Ethereum will also die. When I invest in crypto, I look at the use cases, governance of the project and community. Cryptos like EOS, Bitshares and Peerplays will never die because of their governance structure. They're built for the future.
Governance is key, people don't even think about it but you must have a say on the direction of the project. Otherwise, someone will make decisions that benefit them and make profit from your investment.
My opinion.
An economic crisis will come at some point. That's because crises come and go. Knowing when a crisis will come is another matter. Since the financial crisis of 2008, central banks have implemented very loose monetary policies. Interest rates have been kept negligible and the European Central Bank has been forced to buy government debt directly. Despite consumer price inflation being very low in most of the developed world, asset price inflation is a fact. In some countries like Canada or Denmark the cost of housing is very high forcing first-time home buyers to take on very high levels of debt. The stock market is clearly in a bubble. Current cryptocurrency valuations are another bubble.
Many people, particularly young people invest in cryptocurrencies because they feel disenfranchised and betrayed by the old system. House prices are so high in many countries that young people can't buy homes particularly with the job market insecurities. Some of that discontent is channeled toward anti-establishment voting behavior such as voting for Trump or Bernie Sanders in the case of young Americans in particular. The booming cryptocurrency valuations are allowing many young people to get their piece of the asset price inflation action, particularly as institutional investors have become interested in cryptocurrencies.
Those my posts talk about crisis about to come where cryptos should be the clear winner.
https://steemit.com/cryptocurriences/@tombort/why-irs-can-bust-you-on-centralized-exchanges-and-not-on-bitshares
https://steemit.com/cryprocurrencies/@tombort/what-is-money-and-what-is-crypto
https://steemit.com/cryptocurriences/@tombort/fed-start-to-monitor-crypto-movement
https://steemit.com/cryptocurriences/@tombort/bitcoin-is-on-olympus-but-what-hat-come-up-must-once-come-down
https://steemit.com/cryptocurrency/@tombort/it-crypto-currencies-gaining-value-or-we-have-fiat-free-fall
I be pleased if you can review them and comment.
Upvoted this question post because exposes hot actual theme.
Do I think an economic crisis is coming? Is the sun hot? It's not a question of if, but when. Predicting the timing of the next economic crisis is almost impossible, but it is coming!
Yea, a crash is coming, and it's not going to be like others in the past. Like the saying goes,what goes up, must come down. This time however it is going to take out the world's economy, all of this international trade and banking has everything too closely tied together for any one area to escape. And if you think about it logically you will see this to be true, and it can be any number of things that will trigger this event to start. Just look at what happened to our economy from 9/11 and that was isolated to a couple of areas. No, I'm not diminishing what happened, but you have to think of this on a larger scale, 9/11 occurred in the US and look how it affected the world. Then when you consider the bust of 09 and how it affected the world's economy. Now look at the market today and compare that to the actual economy of our country, they are two very different situations. Main street economy has had very little change, and it doesn't look like it's going to change significantly in the future. When the economy crashes this time, investments, bitcoin, gold, silver, none of that will matter, because you can't eat it, it won't keep you warm, or protect you. All of this is just feeding the illusion, and it only works as long as the illusion is being sustained. Personally, I think it will lead to another world war, I don't see any other direction it can go.
Well, it'll be a crisis for us, the 1% stands to make a killing, you won't see them jumping off building this time around.