Post
Topic
Board Economics
Re: US Debt Default: Good or bad for crypto?
by
serveria.com
on 24/05/2023, 22:19:55 UTC
What do you think? Is a US default good or bad for crypto in the short term? Your input will be greatly appreciated. Thank you. Smiley
I think that in the event of a default, in the short term, the price of bitcoin will fall into an area of increased turbulence due to a head-on collision of two strong trends - on the one hand, the price will drop sharply, because bitcoin belongs to the class of high-risk financial assets, on the other hand, the price will rise sharply, because that the network hashrate is stable, blocks continue to be mined at intervals of an average of every ten minutes, and a fall in the dollar automatically means an increase in bitcoin in the btc/usd pair.

I agree, perhaps a flash crash is possible, with an immediate or not so immediate pump due to fluctuating exchange rates. Just want to add that any failure of any FIAT is positive for Bitcoin in the long run.