Crypto news: Bitcoin price surges past US$60,000 mark, Bank of England warns that crypto crash could cause global financial crisis

[Redaktion]

One of the best-known cryptocurrencies on the market is continuously gaining and closing in on its record high, but a financial institution in the United Kingdom warns that a crypto crash could possibly cause a full-blown financial crisis of global proportions.

https://www.notebookcheck.net/Crypto-news-Bitcoin-price-surges-past-US-60-000-mark-Bank-of-England-warns-that-crypto-crash-could-cause-global-financial-crisis.573359.0.html

[md]

Yeah, it's Bitcoin who would crash the market, not money printing without limit.

[_MT_]

Yeah, it's Bitcoin who would crash the market, not money printing without limit.

What is so hard to understand? Yes, printing stimulates inflation. But predictable inflation, as long as it doesn't get out of hand, isn't a problem. Because it's predictable. Nobody is surprised by it. Everyone can see it from a mile away. And account for it. But a sudden, unexpected crash represents stress for the system. And if it's not strong enough, it can crumble like a house of cards. That's what happened in 2008 because of poor practices. Resilient systems are less efficient, more expensive to run. Which is why they have tendency to weaken over time. It's hard to keep spending the money unless you're constantly bombarded by shockwaves.

Everything is an opportunity. I made money in 2008. I made money in 2020. I will aim to capitalize on a Bitcoin crash if it materializes. The lesson is that what benefits sharks typically doesn't benefit an average Joe. But the average Joe will foot the bill. Disruptive events are potentially very profitable exactly because they turn things upside down. A capsized boat is a feast for sharks. Figuratively speaking.