https://www.reddit.com/r/Bitcoin/comments/1if99sd/help_me_understand_btc_in_debt_crises/
created by RapidIndexer on 01/02/2025 at 15:55 UTC
3 upvotes, 5 top-level comments (showing 5)
I’m trying to strengthen my knowledge of BTC more because I really want to invest more of my life savings into it, but not before I feel like an expert on the matter.
One thing I’ve read is how we left the gold standard because of how difficult it is to pay debts with a deflationary currency. My understanding is that in concept BTC would present this same issue, and even with its fractional nature, this could still be an issue.
What are the arguments about how BTC will address debt crises? And is using a fiat currency alongside BTC as the hard standard the way of the future?
Comment by SuccessfulRing5425 at 01/02/2025 at 16:07 UTC
4 upvotes, 2 direct replies
The idea of BTC addressing the debt crisis is that we can quickly pay off the debt using btc which is rapidly increasing in value. In addition, if US gets there early, it can front run price action, further taking advantage of it.
Comment by Choobtastic at 01/02/2025 at 16:49 UTC
1 upvotes, 0 direct replies
“They” always kicking the debt can down the road…
Comment by information-zone at 01/02/2025 at 17:06 UTC
1 upvotes, 0 direct replies
We went off the gold standard because we were spending more than we were taxing. That was the problem, not a “deflationary currency.”
Yes, with Bitcoin debt becomes more expensive over time, so don’t spend what you don’t have.
Comment by Halo22B at 01/02/2025 at 18:15 UTC
1 upvotes, 0 direct replies
A debt crisis is caused by too many risky loans....don't blame the currency if repayment blame the lenders
Comment by Artistic-Upstairs789 at 01/02/2025 at 19:17 UTC
1 upvotes, 0 direct replies
Wouldn’t this mean the government would eventually cash out to pay that debt? Causing a market crash?