Today I would like to discuss the current situation with currency. The American dollar seems to be becoming weaker each year. The debt of the United States is increasing at a scary rate. Auto loans are at all times highs along with credit cards, and companys keep throwing more credit lines around in an attempt to recover their money.
In recent years cryptocurrency has exploded with growth and is projected to increase at an incredible rate.
I believe that in the next two years the world economy will have a correction that made The Great Depression look weak. I believe wall street will plummet to all time lows and defaults on debt will be mainstream. Even China is starting to create debt the same way the United States is.
Is any of this sustainable? Would cryptocurrency benefit from a 'regular' market crash. Would this be the push the world needs to create a more sustainable way of living?
Interesting introduction, but I'm left hanging for the actual discussion ;-)
I'll follow you for more!
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Let me start from a bit different angle: Based on most theories of "collapse" (see Joseph Tainter) western society might be on the verge of collapse. Just don't imagine it like in those american apocalyptic movies, cause collapse can have many shapes. One of them is a financial crisis which is happening with increasing frequency (one of the signs of upcoming collapse) and a competitor rising in power (China, India. In few decades Africa).
If there will be new financial crisis it will be worse than anything we've seen before but at the same time I believe, that it will be conventional monetary system that will take the most severe hit. Anything, that translates into USD/EUR and can't be used on it's own (e.g. stocks) will come crashing down. And should I put it poetically, from these ashes a new era of cryptocurrencies will emerge, cause they'll gain value of their own. Not just the one "borrowed" from FIAT trough investors and speculators.
Debt and debt creation is entirely different story though. In it's current for it is a downfall of our monetary systems, but I am not sure we can eradicate it altogether, since there always be a "promise and trust" economic relationship in society.
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