Why The Collapse In Confidence In Government And Sovereign Debt Crisis Will Help Cryptocurrency
There are a couple things brewing that could help crypto in a big way.
In this video I discuss how confidence is vital in financial matters and default is a problem. We are seeing a lot of headwinds with some debt, especially in Europe. This could couple with people losing confidence in government all over the world. This is a situation that was brewing over much of the last decade.
Here we try to uncover how this could benefit cryptocurrency.
▶️ 3Speak
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It's some small details and economic problems that have been piling up for a long time without a fundamental solution.
I think you are right it is always a question of confidence. The confidence in governments is failing.
It is already failed in many places. For example just take a look at Hungary. And not at the propaganda.
I keep wondering when the lack of trust comes back to haunt them.
fondly remembers Too Big to Fail, Weapons of Mass Destruction and 2 Weeks to flatten the Curve.
Some simple people will react every single time.
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All valid points.
I think it is a progression that keeps building. The media, the mouthpiece for a lot of the lies, is starting to be questioned by more than just the conspiracy, lunatic fringe. Now there are many in the center who are starting to question the legitimacy of the entity.
That means they are also questioning the message. It is a cycle, at least in the US. We went through a period like this more than 50 years ago. At the core was the Vietnam War but it was our relationship with government that was at issue.
Another decade similar might be in the cards.
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While listening to your talk about the sovereign debt crisis and the collapse of confidence in government, something came to me. Its about common people's access to credit. I don't know the situation in the US, but here in the Philippines, ordinary people like me does not have access to the credit market. Yes, they can lend you a minimal amount. At least you can start with $100.00 with a 5% monthly interest, but I am not talking of such amount. For me, a credit of $2,000.00 is a good start. Just curious if there is already an existing Dapp either on Hive or in crypto space in general that gives low income people access to credit market using their digital assets as collateral.
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Nothing I know of on Hive yet although there might be some projects people are working on. There was something called Hiveloans that did not make it out which was going to allow people get loans using their Hive Power as collateral.
You are right. This is one of the biggest issues globally. Credit is not available to most people in the world, which is stunting global productivity. A lot of small businesses are either not started or cannot expand because of this.
Hopefully that is something we can solve with cryptocurrency. It is not so much crypto as the platforms we build out to help people.
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I already lost confidence in the government of my country (Hungary). They intentionally keep most of us under the local minimum wage. And our currency is close to worthless. 1 Hungarian Forint (HUF) is currently $0.0032 USD. And we are a member of the European Union (EU) since 2004. Huge shame on the Hungarian government.
Sadly you are not alone in that. We see that happening a lot all around the world. The political establishment along with the bureaucrats have betrayed the people. They operate solely in their own self interest, ignoring the mandates given to them.
We need to create another way. This is something that hopefully the crypto ecosystem can help to solve.
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I haven't really heard of municipal bond defaults. How often has it been occurring?
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Yeah for things like charter schools and water plants.
It is starting to happen. I foresee that taking place in some of the poorer cities that are seeing an exodus of people and businesses. They are going to really feel the pinch.
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Summary:
In this video, Task discusses the sovereign debt crisis, collapsing confidence in governments, and how these factors may benefit cryptocurrencies. He mentions the challenges the EU faces with sustaining its system through debt funding, particularly focusing on European debt's lack of appeal. Task highlights the declining confidence in governments worldwide and how this is fostering a shift towards alternative assets like cryptocurrencies. He emphasizes the potential of cryptocurrencies to attract investors seeking higher returns amidst a fragile economic landscape.
Detailed Article:
Task delves into the looming sovereign debt crisis and the diminishing confidence in government institutions, illustrating how these circumstances could serve as a catalyst for the rise of cryptocurrencies. He points out the struggles the European Union encounters in maintaining its financial system, especially with the unattractiveness of European debt to global corporations and banks. The discussion evolves around the EU's potential issuance of perpetual bonds, which may further highlight the economic troubles brewing in the region.
Task highlights the broader context of eroding trust in governments worldwide due to various political events and unfulfilled promises, leading to a loss of confidence among citizens. He uses Spain's retirement plan as an example of the financial challenges countries face in meeting their obligations amidst changing demographics and economic uncertainties. Additionally, Task discusses the declining approval ratings of political leaders and the increasing levels of corruption and hypocrisy in governance.
Throughout the video, Task draws attention to the impact of these factors on traditional investment mechanisms like bond markets and equity markets, which are losing their appeal. He notes how cryptocurrencies, particularly Bitcoin and Ethereum, are emerging as viable alternatives for investors seeking refuge from the volatility and uncertainties of traditional markets. Task emphasizes the role of cryptocurrencies in capturing the interest and investment of individuals, especially as familiarity and accessibility to these digital assets grow.
Furthermore, Task elaborates on the evolving landscape of cryptocurrency adoption, emphasizing the importance of building confidence and trust in crypto systems and infrastructures. He predicts a steady but robust growth in cryptocurrency usage over the next couple of years, driven by a lack of confidence in traditional financial systems and government institutions. Task envisions a future where cryptocurrencies become a mainstream investment option, offering solutions to individuals dissatisfied with traditional financial instruments.
In conclusion, Task expresses optimism about the potential of cryptocurrencies to thrive amidst the challenges facing the global economy and traditional financial systems. He highlights the need for continuous development and refinement in the crypto space to establish it as a reliable and attractive alternative for investors seeking stability and higher returns in an increasingly uncertain economic environment.