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I'm not sure why crypto is even relevant here. If Bitcoin drops to zero tomorrow, the economy won't budge. The real thing is the moratorium on evictions expirin
by akomtu 5y ago
I'm not sure why crypto is even relevant here. If Bitcoin drops to zero tomorrow, the economy won't budge. The real thing is the moratorium on evictions expiring this month, and with about 8 million americans haven't been paying rent and mortgage for a while, this opens interesting possibilities in July. My bet, though, is that the moratorium will be extended till end of year.
- ganoushoreilly 5y agoThat coupled with the cancelation of extended un-employment benefits in some states is definitely going to cause some friction.
- e9 5y agoIf Bitcoin goes to zero then a lot of people will get margin calls that they can’t meet and this will cause all sorts cascading failures
- animex 5y agoIsolated to the crypto ecosystem. The ramifications to fiat assets and financials is limited by the fact that there's not much free flow between crypto and fiat.
- e9 5y agoSo you think that if someone wipes out crypto they borrowed from exchange, then the exchange wipes out the assets they borrowed from some other account then person who lended crypto just looses and there is not much they can get back? So this way only crypto ppl loose?
- hungryforcodes 5y agoThat is only going to happen in leveraged Bitcoin markets like futures or options. The majority of crypto users are HODLers. Also with 10x-50x multiples, liquidations are going to happen way sooner than the apocryphal "zero". A move of 2.5% - 10% is enough to get a margin call.
- loldk 5y agoIs the moratorium the reason why we don't see greater numbers in these charts? https://www.consumerfinance.gov/data-research/mortgage-performance-trends/mortgages-30-89-days-delinquent/ https://www.consumerfinance.gov/data-research/mortgage-perfo...