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Yes, but it could remove the need to bail out the banks, which is really the crux of the issue when you get down to it. As it stands today, _not_ bailing out t
by maemilius 9y ago
Yes, but it could remove the need to bail out the banks, which is really the crux of the issue when you get down to it. As it stands today, _not_ bailing out the banks would have crippled or destroyed the world economy (at least, that's my understanding). The banks are, literally, too big to [be allowed to] fail.
Cryptocurrencies could eventually remove enough power from banks to render their failure absorbable by the global economy.
Granted, I find it very unlikely that any cryptocurrency could remove the need for banks in general - they fill too many roles in the financial system - but it could reduce the market's reliance on them in general.
There's a lot of "could"s in all of this and I'm not an economist myself, so, grain of salt and all that. I will say that this is all based on things I've read from people that are, to the best of my knowledge, actual economists, but you should do your own research if such a thing interests you.