Corporate Debt, Cryptocurrencies & The Next Financial Crisis
In his excellent article entitled Corporate Debt, Cryptocurrencies & The Next Financial Crisis Patrick Tan explains why the next debt crisis might be much more difficult to „fix“. And why this time, crypto is ready to serve as escape route.
He writes:
Because the major players in the last financial crisis were relatively large nodes of the global financial system, shoring them up (while politically controversial) was at the very least sufficient to allow global financial markets to make the steps necessary to achieve normalcy. But with Triple B grade corporate paper, the silver bullets may not be so easy to fire because in a decentralized corporate credit collapse, which companies are essential for rescue and which ones are not?„
and:
If and when the next credit-fueled financial crisis hits, the world is already aware of cryptocurrencies. […] So it is entirely possible for the next financial crisis to result in a surge of interest and demand in cryptocurrencies, for the very same reasons that gold acts as a safe haven in times of economic, social and political turmoil.
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If a next financial crisis is just around the corner and crypto might become a safe haven in the turmoil then we are definitely going to have a strong bull run. I imagine also the scenario in which a devastating financial crisis will crush a lot of national currencies "helping" cryptocurrencies in becoming actual currencies without the need to pair them with any existent currency. That's how I see cryptos becoming actual money. After a strong shakeout. However, when I look at cash money and at how society still runs with them, especially in my country, I wish for cryptos to become adopted as international currencies today, but on the other hand I think that the same people that own the most amount of wealth nowadays and manipulate economic worlds will take control over a crypto based financial world also. I hope though for a long desired banks free financial freedom and the decentralization that many of us wish for.
Great comment @acesontop
Indeed that's very likely to happen, just not really that soon as people would like it. I would not expect another bull solid run in 2019.
We need entire current generation to really die. That's very sad truth. Current generation should be considered as a very strong global community supporting idea of FIAT currency. And you won't change this mindset within our lifetime. But surely crypto will be great addition.
Great comment buddy
Piotr
In this context: https://www.goldmoney.com/research/goldmoney-insights/crypto-credibility where Alistair Maclead reasons that crypto could enjoy a very large bubble influx should fiat currencies visibly begin failing.
Hi marius! Thanks for visiting my page 🤩👍
I’m a guitar player too. Cheers matey!
It is highly possible.
I can only imagine how hard the next financial crisis will strike countries such as Greece (it’s where I come from) where they still haven’t recovered from the crisis of 2008 - 2009.
I wish people could see the potential and the revolution crypto are about to bring it the entire world before it is too late..
People should at least move some money to crypto. It can be just a little as it will be enough when the big rush starts. I am sorry for the situation in Greece. Read “Adults in the Room” (am halfway through). Scary insights…
Seems like we were the "ultimate experiment"...which of course was a failure.
"Adults in the Room" huh?...I'll give it a shot. Thanks
Defining crypto-currencies as safe-heaven looks like a little bit overkill. But I am sure people will distribute more assets into the ecosystem in case of any big financial crisis.
I agree. There is no safe-heaven and nothing is black and white. Every asset has its features and every investor needs to find the portfolio that best matches her/his values.
Great comment @emrebeyler
Love to see how responsive and supprotvie you are :)
The whole cryptocurrency surge has been a real learning curve for me as an independent musician!
I'd like to personally thank you for your kind upvotes on my music posts here on Steemit.
In this current bear market and the recent Dsound delegation being removed by @ned it's refreshing to know that whales like yourself are willing and able to continue supporting struggling musicians in this space.
Thanks again mate, I really appreciate it.
DC🎼
Thanks for your kind words and your great music.
You're very welcome mate!
And thanks again.
My new EP is Out Now on all the usual download stores if you're interested.
Little Words EP https://www.amazon.co.uk/dp/B07MRDLBHZ/ref=cm_sw_r_cp_apa_i_9k3rCbY45DPF0
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Is the financial crisis around the corner?
Nobody knows. The amount of debt is unhealthy but the current system can be kept alive for quite some time. I feel much better having a good portion of my assets in Bitcoin, Steem, and other crypto.
Posted using Partiko iOS
OK. Cool, this a good move @mariusfebruary.
Dear @mariusfebruary
Definely we're going to witness some slow down and we need to wait and see if banks and FED will come up with any idea how to stimulate economy even more. Or will they allow economy to slow down for some time (which could be very healthy).
Cheers
Piotr
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