I was just thinking about this before coming across this that captures a lot of my thoughts. Perhaps it is because we are at the centerpiece of one of the go-to places for information, or it could also be that the handwriting is already on the wall. It seems like the awareness of a potential economic collapse is somewhat high here on Hive, as discussions in that regard have been on the increase.
From all indicators, the assumption isn't far fetched. One of the biggest economic drivers in the World's economy is construction and real estate. A significant collapse of that sector would send a vicious shockwave that will inevitably affect all other sectors. Right now, the Evergrande debt crisis could spark such a spiral should China not decide to directly intervene. A global financial meltdown (think 2008 or last year's Covid induced recession).
I used to think that the crypto space would somehow not be affected by any severe economic meltdown once it matures, as more people will be trying to harness its potential as a more effective way of doing things. However, after reading the opinions of a few people more vast in the subject matter of economics than I am, I have come to the conclusion that it inevitably will not escape such an onslaught.
What I doubt however, is the extent and severity of impact such a collapse will have on the blockchain and how users will be affected during a potential crisis. Firstly, I do believe that once we can attract more users by a superior proof of value showing of the potential this technology possesses, we are going to experience a very large influx of new users, as well as increased investments from existing users.
When an economy collapses, there are certain sectors that continue to grow regardless that serve as a lifeline to all other sectors. This is the premise I believe will make the block chain a potential lifeline in the event of a collapse. When the traditional mode of generating income becomes tighter, and the banks squeeze liquidity from the system, people will inevitably look towards alternatives which crypto can provide.
I do see massive selling should a collapse occur, but I also see massive investments moving to the space simultaneously. Those already invested in the crypto space will likely be at a crossroads of whether to sell their stake should their income sources be severely hampered, or to keep holding out with the new potential the space offers. It is going to be tough choices ahead when the time comes.
Guaranteed Future
One thing we can all be assured of regardless though, is that the long term viability of the blockchain is still very much assured. A financial crisis will once again give more evidence to the loopholes of our current system and the inefficiencies surrounding it. Bureaucratic bottlenecks, corruption amongst other things that make the crypto space a better alternative will be evident.
I may also be thinking too far ahead, only time will tell on that front. Best to be paranoid and prepared anyways. We have a viable alternative in the blockchain is the point am trying to make, one that would thrive in spite of a financial meltdown.
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I am only worried about a collapse in crypto if and when we are mega-bubbled. The doubling curve for Bitcoin still sits at $25k, and will be $50k in a year (where we are right now).
The worst loss we can get is breaking even after a year of holding. A legacy implosion will only bring BTC back down to where it's supposed to be at the doubling curve. At the end of the day we aren't bubbled enough to worry about a crash.
Let's revisit this in three months.
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Am setting a reminder...let's see how it plays out in the meantime.
I'd say the timelines are aligned perfectly for the mega-bubble to pop up just in time for a year long bear market sparked by some legacy fiasco. You gotta remember that the people at the top can usually see these things coming and they will try to control the demolition and make money in both directions. Volatility is the only way to make money in these markets. What goes up must come down.
So you are a paranoid optimist? :)
I am on it with you, sand paranoia! Call me naive ...
@tipu curate
Upvoted 👌 (Mana: 14/94) Liquid rewards.
Lol anyone's who's been with Hive through the lows has to be both paranoid and an optimist, so I can say it's a lot of us. Naivety all the way
Hopefully the WEF, and Klaus 'anal' schwab's NWO plans implode before they have a chance to cause misery. Implode they will, but the sooner the better.
IF that happens, and crypto is not the mark of the beast it could become (ie, returning to a free market philosophy), blockchain and crypto has a bright future.
DPoS will not be part of that future.
DPoS is 'stakeholder capitalism'.(communism/technocracy by the back door).
The buzzword "stakeholder capitalism" isn't new. Klaus Schwab has been pushing it for five decades. But it's hitting the mainstream now and it's the economic side of plans for "The Great Reset." by JD Rucker.
First, the manager focuses attention on procedure and not on substance.
The manager focuses attention on how the decisions are made, not what decisions to make.
That’s because the manager is typically working in a setting where the goals of the organization are neither clear nor perceived as worthwhile. In the place of goals that provide meaning at work and in work, there is a hierarchical structure, precise role definitions, and elaborate rules and procedures, which often conflict: managers have no way of knowing what is the right answer.
The only safe place is to focus on process.
https://www.forbes.com/sites/stevedenning/2020/01/05/why-stakeholder-capitalism-will-fail/?sh=79e57180785a
When we finally have a stock market crash, crypto will fall with it... but only temporarily. When people realise we are facing a worldwide sovereign currency crisis the wealth will quickly flow back into crypto assets.