What happens to Bitcoin when there's a liquidity crunch and people need cash?
Remember, Bernie Madoff's empire was worth tens of billions of dollars... until the economy stumbled and people all wanted to cash out at the same time.
What happens to Bitcoin when there's a liquidity crunch and people need cash?
Remember, Bernie Madoff's empire was worth tens of billions of dollars... until the economy stumbled and people all wanted to cash out at the same time.
That happened last year, as a matter of fact. People were getting freaked out about having enough cash through the uncertainty of corona. The value plunged to just $4000. And then guess what happened?
The fed said that they would print as much money as needed to handle the crisis. Trillions and trillions of dollars rained down on the politically connected like manna from heaven. Now the price of a bitcoin sits at $47,765. (Almost 12x gains)
Guess what will happen the next time the financial sector is in trouble? I know where I'm putting my money, and it's not on the dollar.
And this is just my American perspective. As I said, in other countries the math is even more convincing.
Edited for correct figures. Hard to believe that March 2020 was last year :/
As soon as the banksters piled in, I stopped worrying about regulation-to-the-point-of-extinction. As long as government is set up to get their cut, they'll be fine.
After all, the banksters need a way to protect their wealth as well. And they're the ones who get to write the rules.
I had these same exact questions when I first started reading about bitcoin, so I have no problem helping people with the answers so they can understand as well.
What happens to Bitcoin when there's a liquidity crunch and people need cash?
Remember, Bernie Madoff's empire was worth tens of billions of dollars... until the economy stumbled and people all wanted to cash out at the same time.
That happened last year, as a matter of fact. People were getting freaked out about having enough cash through the uncertainty of corona. The value plunged to just $4000. And then guess what happened?
The fed said that they would print as much money as needed to handle the crisis. Trillions and trillions of dollars rained down on the politically connected like manna from heaven. Now the price of a bitcoin sits at $47,765. (Almost 12x gains)
Guess what will happen the next time the financial sector is in trouble? I know where I'm putting my money, and it's not on the dollar.
And this is just my American perspective. As I said, in other countries the math is even more convincing.
Edited for correct figures. Hard to believe that March 2020 was last year :/
Fair point, I think you're right that it will never go to zero. If you get in and out at the right times you can make a killing.
My other concern is regulatory risk. But that may not be a factor if the banksters pile in.
As soon as the banksters piled in, I stopped worrying about regulation-to-the-point-of-extinction. As long as government is set up to get their cut, they'll be fine.
After all, the banksters need a way to protect their wealth as well. And they're the ones who get to write the rules.
Facts?
Begone, thot!
(Fun fact: I posted that, then your original post vanished. I lol'd.)
I had these same exact questions when I first started reading about bitcoin, so I have no problem helping people with the answers so they can understand as well.
Yeah. It's pretty wild stuff. I'm excited about it.