How Would a Financial Crisis Affect Cryptocurrencies?


In this video, I'll be sharing my opinion on what I think would happen to cryptocurrencies like Bitcoin and Ethereum in the event of a financial crisis occurring.

***I am in the process of adding many of my videos from YouTube on to DTube. Apologies for any posts that you've already seen before!

Original date of upload: July 18th, 2017


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Cryptos will most likely dump in the event of a normal stock market crash , as there's less speculative capital inflows into other markets, but in the event of a currency crisis, which I think is very likely given the present global economic situation, bitcoin and cryptos will boom.

Opt out of Fiat and into crypto!

It's very hard to say what will happen in a global financial crisis to crypo as it was never an option before!

But I for one believe this to be a much better system with much lower risk than fiat.

Nice video Louis!

Makes sense what you said. I agree because crypto is not widely accepted. That's why I think people will, as you said, try to get its hands on cash. Crypto will make a lot of sense when banks don't let people withdraw their cash.

Think if what happened in Venezuela, but on a global scale as the fiat money system begins to unravel as bonds implode.

As for banks, before the fiat money system seizes up, most banks will start to do haircuts on depositors via the bail-in provision that went into effect in Europe and Canada in 2016. I believe other major Western nation also have bail-in legislation.

Bail in didnt happen in Canada ever. And only in a couple of smaller countries in Europe. So your facts are wrong.

But your general point remains valid. The bail-in has been tested and validated to be possible without mass population hysteria in the places it was tried.

So in the face of next crisis, the powers that be will certainly use a bail-in as a partial solution

One of the big reasons why Bitcoin exploded overnight in 2013, was because of the financial crisis in Greece. Banks were shutdown, and people couldn't take out their money.

One of the major advantages of cryptocurrencies is the fact that it has a limited amount of supply hereby increasing it demand. It’s not randomly generated. The picture below explains a lot.

Last pic is wrong. Bitcoin will be at least $500k by 2020 ;-)

eh, just add a couple more in there and call it a day!

I strongly agree with your take on this. I see a lot of people wanting to take out of their position so that they can get whatever they can if the market crashes. Especially, as you mentioned, if it comes down to either feeding their investments or feeding their child.

I am kind of hoping for a crash in the crypto market so that I can catch the next wave, but I'm a little worried about a financial crisis like what will eventually happen. I mean, people will be losing their jobs and money will become tight. Geez, lets not even get into what happens if you can't keep the power grid up..I' hoping that it doesn't get to that point however.. I'll admit, I've always been trying to prepare for this stuff though. I planted about 70 fruit trees last year in hopes to having extra food in case of something happening. I want to get some solar powered back up generators as well, but I'm really hoping that I'm just over-preparing.

Oh well, I don't want to blow up your whole page with my worries. Great video. Take care!

Give us a chance to get it at a low cost

Thanks for helping to users dear this is a good step

Very real opinion .I am agree with you.And this is so good video.I appreciate your video.
Keep it up

We may see some type of changes in the financial field (as we are already seeing) who knows what to expect next...

Maybe I'll open another bottle of wine to keep celebrating all this

Did you remember to buy the Dip? @louisthomas

it is a very descriptive video. Thank you Thomas.

hard to say what would happen as it's never happened before, be interesting to see tho.

It could go either way, right? Give up on the stocks and try to regain the loses there.

Will be very interesting to see the disruption that crypto currency causes over the next few years. Buy the dips!

Bitcoin would go to very low levels... the more interesting question that has been discussed in Davos, what effect on the financial markets if Bitcoin crashes.

None. Cryptos are not leveraged or tightly integrated to mainstream financial markets.

Cryptos could completely disappear tomorrow, with barely a whimper from mainstream

I think in places where fiat is volatile and btc accessible, btc may be a decent backup. Aside from buying btc in anticipation, I can't see people willing to part with cash for btc, even if the cash is dropping in value each week. In that situation, I'd be looking for the government to step in or the value to go back up just because it isn't human nature to expect currency crashes.

great post keep the good work

Choosing crypto over fiat could arguably be a good decision. BTC too has not been accepted so widely by many nations except for Canada and Russia you can say. But still cashing out is not the final solution at all.
And Nice background.

Thanks for letting us know your thoughts on the matter. You've highlighted some amazing points in not the short term and long term, definitely changing my mind in terms of the implications of a financial crisis in the near future. I would've thought that simple supply and demand mechanics would cause crypto to moon, however you've raised the immediate need for fiat currency to purchase necessities being more important than an investment in cryptocurrencies and that's a really good point you raise. That being said, a cryptocurrency investment should be for the long run, and if you invest in a technology that solves a problem, when you check back on your investment 5, 10, 15 years from today, I'm sure you would've made a pretty penny. If there's a better alternative to fiat currency, in the long term, it will always win regardless of any government regulations and attempts to centralise.

I believe that the blockchain technology solves too many worldwide problems to tank in the event of a stock market crash...that's why I...hodlittt.jpg

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