Crypto What happens when Bitcoin crashes?

So will BC tanking take down the entire crypto economy or is this more like the Aus housing market? Diffrent markets at diffrent points of the cycle?

 

It's not quite that simple. Housing is just more likely to trigger a GFC due to high debt to income ratio that BC or any other currencies. A currency devaluation can be a trigger for a global economic crisis. Usually a global financial crisis is like a set of dominos and seems to start with one thing but it's multiple risks over time.

 

I think it would be the rare person who has all their wealth in cryptocurrencies, though if it drops from its heady heights many people will feel the pain, particularly if it's a fast deflation. I think the question is "when" the prices will drop... that is the great unknown.

Anyway, if people just put play money in for a flutter, that's ok. Just like a punt at the races.

 

So far yes. The wide spread use will be slow but will happen. Japanese and Korean banks are testing international money transfers using Ripple.

Dont we buy USD only to sell them at a higher price later on? Currency trading is a very lucrative business with or without crypto

 

There is a big big big misconception by many because we call it crypto currency it only involved money and banking.

That NOT correct at all. The use cases of Crypto is HUGE and can touch and be involved in every single industry we have. This is why probably 90% of investors have no clue on what they are buying into but that 10% actually can see the potential in the right coins.

Before you speculate, invest or even say there is a bubble ask yourself do you ACTUALLY know what cryptos are used for in real life and how they work? If your answer is no then DO NOT invest.

 

Spot on.

While it is fair to say that many are throwing at money at coins without knowing anything about them, it is also true that many are dismissing crypto as a bubble without knowing what it is. Just like the dotcom bust it's likely that many of the current coins are trading on complete speculation but there are many that solve real problems and may end up being massive when all of the dust settles.

 

My advice is to educate oneself about what crypto is, what each of the major coins are designed for and how they work. Join the forums and online groups, speak to people. Only then will you be convinced that it's here to stay for good.

 

I can see blockchain tech staying. I cant see why any of the specific cryptocurrencies have any value. Not when countries can ban them (as Korea is planning to). Just like the internet technology stayed, but a lot of the individual internet companies had no value.

 

The USD has a ceiling and is backed by the US government and therefore relatively secure. USD currency flux is less severe and generally more predictable.

 

http://www.news.com.au/finance/mone...g/news-story/27c5845fa9315d6b07d51adca46fa29d

 

From what I've read, the South Korean government are trying to stamp out tax evasion. In South Korea you can sign up to an exchange anonymously, without providing your personal details. So a tonne of people are trading and avoiding tax right now. They will most likely force all exchanges to start tracking who's trading, or be shut down. But we'll see what becomes of this. Keep in mind that this is just one country (albeit one of the major ones in the crypto space) so it's not the end of the world.

Here's news just in regarding one of the major coins, Ripple, teaming up with MoneyGram. Ripple surges after teaming up with MoneyGram on cryptocurrency-enabled payments Another example of crypto having real world applications. This is just the beginning.

 

It can only go 2 ways-the more that buy in the more the model will change and a virtuous endless circle begins , or the opposite strategy begins that leads to chaos ,plus I don't understand it all so I will just watch from the sidelines no going to worry me 0.0005%..

 

I personally know a few people who have turned 'play money' (<25k) into real money (500k+ Portfolio)in just the last 6 months. If we see said 500k value drop back to say 50k will they see it as a 450k loss or 25k+ gain. Or will the starships keep flying to the moon and these guy become multi millionaires.

If cryptos keep going strong I see gold prices getting some significant gains as people cash in volatile cryptos to safe investments to conserve their new found wealth.

 

What happens when fiat currency crashes?

 

The amount invested worldwide in cryptocurrencies is pretty small. I read there were inflows of about $10 billion last year. A crash wouldn't cause that much damage.

Will blockchain change the world? I've not seen any compelling use cases, and this article pours cold water on a number of the claims.

Ten years in, nobody has come up with a use for blockchain

I think that payments and currency transfers are pretty cheap. I sent some money over from the UK yesterday, and got around 0.5% within the mid market rate. (Shame that the Pound is so weak these days, though.) It'll take a couple of days, but I can live with that.

Or take something like file storage. Why do it on the blockchain? AWS are pretty cheap these days, to the extent that an awful lot of companies don't bother running their own data centres.

Smart contracts could be interesting, but I'm not convinced that these are dependent on the blockchain. Besides, there's an interesting Twitter thread in which Sarah Jeong (journalist and lawyer) and The Epicurean Dealmaker (M&A banker, former financial blogger) suggesting litigation being subject to interpretation, and IT nerds don't understand it. (I'm not convinced that those two grok software, but...)

 

What will happen to all these coins if governments decide to release their version of crypto?
Or even Amazon or eBay or payPal release their own version and let people transact using it?

 

How hard is it to set up a new coin?

Most of these things don't have a lot of funding, a unique business model, or a stack of patents. I'm not sure how much of the core software stack is written from scratch, or if the hashing and crypto algorithms are reused.

(The Safex coin's GitHub repository only seemed to contain unique code for a wallet, but I only took a very quick look.)

If the hard parts are off the shelf, then the barriers to entry are low. The coins aren't occupying a defensible position. And they'll probably undergo a Permian style extinction.

It's possible that there'll be survivors. Amazon came out of the Dot.com bubble, and Google was founded in that era, which was as crazy in its own way.

 

The opportunity for fiat to crash was a decade ago, 2008.
The illuminati didn't let it happen.........

 

If you’re worried about Fiat in a crash you can always buy a Volvo which has a better crash protection system.

Sorry I tend to be sillier than usual in the morning. And it is a Bitcoin thread after all as he runs like mad with an angry Crypto mob after him:

 

Bitcoin wasn’t designed to be an investment, it’s supposed to be a digital/crypto currency



I've not much idea about them and their seems to be a myriad of coins now available , but I do watch with interest as with anything that disrupts the market, Bitcoin’s fall from grace has now been bigger than the dotcom bust

Warren Buffet believes they will end badly Link