What happens if crypto currency collapses?

[Kendodd]

I've heard Trump has launched his own crypto (and made billions already). How will this affect the economy when you have the president setting up his own currency as an alternative to the US dollar?
What happens if crypto collapses will this affect the world economy?
Any clever people who can figure this out and explain it to me?

Anyone know and can explain to me?

Honestly don't get how it works. It's just online figures 🤷🏼‍♀️

Trump has just launched his own 'coin' which is apparently now worth billions. How?

Not too interested, but I don’t understand cryptocurrency. It’s not real and just a thing in the ether. But plenty of ppl are v involved in it.

Nothing will happen as it’s not backed by anything or regulated. It your bank goes bust in the UK, you can apply for up to £85k through the FSCS. If a cryptocurrency platform goes under, everyone loses their money. Cryptocurrency is just legalised money laundering. My job involves dealing with people who’ve been victims of crypto scams every day. It’s a con. The emperor’s clothes. And anyone who tells you that you just don’t understand it is talking out of their ass.

The word "collapse" just means a drop in value. I've lived through many stock market "collapses" and a housing market "collapse." What happens? Some people lose money but most assets eventually regain their value over time and reach new highs.

I imagine it would be a shitshow? Especially if trump is involved.

One thing that worries me about crypto is if it reduces confidence and trust in 'real' money.

Ffs MN why are you hiding things? I'm asking perfectly polite and reasonable questions and trying to learn about something I don't understand.

trump coin is currently £195 per coin...so no not worth billions. it's falling rapidly

Unlike mainstream financial products, crypto are not regulated by the US Treasury.
If a regulated US bank goes bankrupt by example, the US Treasury would intervene or pay in order for clients to get their money back.
If an unregulated crypto exchange goes bust, investors lose all their money, they don't have this guarantee.

So, in theory, if a crypto would collapse overnight, it would not trigger a domino effect through the common financial system like it happened in 2008.

But a lot of money is now invested in cryptos, more and more by actors of the classical financial system, financial products like ETFs are based on crypto, etc. so they are becoming more intertwined as crypto grows.

I really hope it's called shitcoin 🤣🤣🤣

Google is your best bet for this sort of stuff.

Me too, I got my reply hidden, let s try again

The difference between crypto and the mainstream financial system is that cryptos are NOT regulated, which means they are not guaranteed by the Treasury.
If a regulated bank goes bankrupt, the Treasury (or the bank of England in the UK) would intervene or refund the people who lost their savings.
If an unregulated crypto exchange goes bust, people will lose their money, no recourse.

So if a crypto exchange goes bust, in theory, it would not have a domino effect to ripple through the financial as it happened in 2008.

But a more and more money is invested into crypto, more and more actors of the classical financial system invest in crypto, financial products like ETFs are created based on crypto, etc. so as crypto grows, things become more and more intertwined.

TRUMP is what we colloquially refer as a "shitcoin". It is just a fad. Once it reaches a price high enough, their holders will dump it and get Bitcoin instead.
This will have no impact in the global economy.

Nice explainer here (using wine as the analogy)
https://www.thetimes.com/article/97d8ad2c-0287-4887-aba8-b275237ddb3f?shareToken=2863a5dbc6ca06795aa828dc83979024

Am concerned about crypto generally. Think it's probably useful if you were trying to hide from thr authorities. Looks like a big gamble and too high risk for me

It’s worth understanding what crypto actually is. In many ways, it is no different to money. Both are a human construct that we put value in. I found this podcast really helpful to understand, although not enough to put my money into crypto 😀

https://podcasts.apple.com/gb/podcast/the-coin-bureau-podcast-crypto-without-the-hype/id1608944138?i=1000551364707

I fear a discussion on this is going to be impossible on MN if they just hide everything.

It’s crackers! All I did was recommend a podcast which explains crypto in layman’s terms and they’ve hidden it!

Trump has issued a meme coin. Its not like a real currency. Its a tradable asset. Same as dogecoin or the one milena issued. They are cashing in on their popularity.

Crypto is stupid. There's a goatcoin FGS. Some crypto currency values are based on the tech. Meem coins are just fads.

DH is a crypto bro, made tonnes of money off it.

Huh? Why am I hidden? This has never happened to me before. Why is this thread under scrutiny but not all the tosh snagging off the Labour Party?

I'm imagining someone at MNHQ flipped a switch on this thread by mistake!

It's a meme coin, it will never be currency. Crypto is already a type of currency....like XRP .... nothing new

This thread has more holes than swiss cheese!

Tbh, I'd start with doing some really basic research about crypto if you genuinely are interested.

Also fiat currency, and Bitcoin (The Bitcoin Standard is a good book as a starting point here).

It's a fascinating subject. It's seems to be quite misunderstood by many on Mumsnet though, judging by past discussions, so this is probably not the best place to ask.

The meme coin associated with Trump last weekend was never £195 - not sure where that number came from. There are thousands of such coins launched all the time - many have been named Trump or other associated names - most don't go anywhere and many are scams.

Guessing they're automatically being hidden because multiple references to cr*PTO probably flag a spam filter somewhere