Will The Banks Spur On The Next Crypto Bull Run?

in btuniverse •  4 months ago 

Normally, something happening in a small country might not carry much weight. In the era of cryptocurrency, this is not necessarily the case.

Trust is a vital part of any economic system. We have industries that are built around providing that trust. When economies or, worse, markets have that trust broken, very bad things happen.

At present, the word from the mainstream is that everything is going fine. The global economy is slowing yet it is not in jeopardy of collapse. The central banks of the world are easing, a move, we are told, that will alleviate any major problems.

There are many who take exception to that viewpoint. We see their works posted all over the Internet. A few even appear on television to pass along the message that we are in a heap of trouble.

Nevertheless, our leaders and their cronies in the media keep banging the "all is well" drum.

Sadly, there are a few instances that are starting to shed some light. Without going into them all, there is one situation that is of concern and could foreshadow some things for the crypto world.

Lebanon is a country that is small on the world stage. With a population of roughly 6 million people, it has little influence over things globally.

That does not mean it cannot start something that carries to the rest of the world.

Presently, that country is facing an old fashioned run on its banks. People are showing up to the banks in droves; demanding their money. According to reports, some are even armed.

For the past two weeks, the banks were closed. This sparked mass protests as people wanted their money. We can only imagine the emotions associated with a country cut off from its money.

“This is our money!… We can’t get our money – you have money in the banks and you’re not giving it to the people! You’re stealing from us!”

Read more at 7bitcoins.com: https://7bitcoins.com/lebanese-banks-in-panic-mode-clients-with-guns-demanding-money-withdrawal/

Normally, a bank run in a country of this size means little. However, with the option of cryptocurrency, this could take on a different meaning.

Since trust is such a vital component to all economic and financial activity, we now have 6 million people who lost that trust in their banking system. Nothing can turn a group quicker than taking their money and not giving it back.

This brings up the question of who is next. Lebanon is not the only country with a banking system that is in shambles. In fact, the entire European banking system is on edge. Deutsche Bank, one of Germany's largest suffered huge losses in the last two quarters calling into question the ability of that institution to remain solvent.

The bigger question is what happens to Germany if Deutsche does go under? After that, we will be wondering what happens to Western Europe if Germany goes into the toilet?

These questions ought to make the world think. When things go bad, investors look for safe havens. With the global banking system showing signs of decay, will cryptocurrency be viewed as a much better alternative?

We know some populations embraced that notion. Citizens in both Venezuela and China embraced Bitcoin as a means of protecting their wealth against what was taking place in their countries. It would make sense that those in Iran would be doing the same.

Ultimately, the next major cryptocurrency run could come from the most unlikely of places: the banks themselves.

Lebanon is likely not to be the last country to experience something of this nature. Each time this happens, millions of more people are awakened to the perils of the present financial system.

How many will turn to cryptocurrency remains to be seen? Nevertheless, unlike in the past, people are being presented with a choice.

Time will tell how this one plays out.

Visit our website for more!
Subsribe to our YouTube Channel
Check out @Minnowbooster
Don't miss out on @Steemvoter
Set @buildteam as your Steem witness proxy

Set it up today and contribute to building a better tomorrow!

( Want an easier way? Use our SteemConnect proxy link! )

Join our Discord Chat

Get support and connect with us and other BuildTeam fans!

Disclaimer: This is a @steemvoter subscription payment post. Thank you to Steemvoter customers for allowing us to use your Steem accounts to upvote this post by virtue of your free subscription to the Steemvoter.com curation automation service. @steemvoter is proudly a @buildteam subsidiary and sister project to @dlease, @tokenbb, @ginabot, @steemsports, @btuniverse, @steemsports-es and @minnowbooster.

Beneficiary Declaration: 10% @null BURNPOST! 10% to @steem.dao proposal fund.

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

It would be wonderful to see more people using crypto as a hedge/ part of their overall savings plan. I do not think these bank runs will do the trick. Governments have used so much propaganda to convince the people that fait is the best and banks are safe (backed by the full faith of government) the sheeple are blind. Even something like Deutsche going under or a major country like German experiencing hyperinflation I would bet people in America or other countries would just shake their heads and say "those crazy Germans, it will never happen here". Unfortunately by the time the people who need the escape hatch realize what is occurring it will be too late to buy insurance: gold, silver, hard assets, crypto, etc.

I believe there will be a deflationary collapse in the stock market and assets. Everyone will seek saftey in the usd. The fed will print like never before which will lead to hyperinflation. Thats when crypto really takes off.

Excellent post @buildteam 👏🙂

Posted using Partiko Android

yes, it will happen

  ·  4 months ago Reveal Comment

the crypotoes will be more popular

a scene we've seen repeated how many times

thankfully crypto and pms are there to provide an alt 👍

Thanks for sharing your thoughts, @btuniverse.

This is why we choose crypto, as their decentralised nature means that all persons in the world, regardless of who, where, or what they are, can have equal and unadulterated access to the financial system.

The big worry here, is that the world economy is slowing down, and there is a pretense from bigwigs that everything is fine. The fundamentals of the economy (i.e. corporate earnings, wealth inequality, wage growth, employment, inflation), are slowly eroding.

Yet, rather than fix those fundamentals for long-term stable growth, central banks are using artificial inflationary/deflationary tactics instead, which is only able to act well as short-term stop gap measures.

What happens then, when the central banks run out of options, and the fundamentals remain weak?

Congratulations @btuniverse!
Your post was mentioned in the Steem Hit Parade in the following categories:

  • Upvotes - Ranked 2 with 1336 upvotes
  • Pending payout - Ranked 6 with $ 33,74