What will happen to Bitcoin if US defaults?
If U.S. defaults on debt Bitcoin could rise nearly 70%, says Standard Chartered analyst. Bitcoin bulls have had a relatively good year so far after a disastrous 2022. Bitcoin bulls have had a good year so far. If the U.S. defaults on its debt, it could get even better, at least in terms of their Bitcoin investment.
If the U.S. government defaults, we'll probably see a quick pull-back and then a very strong push upward in the crypto market." The crypto currency market has followed cyclical patterns and while 2022 was "quite painful", it is recovering this year and 2024 will be "another exponential year", Smith said.
Although there is nothing that can stop a government or central bank from banning Bitcoin (& a few have already done so), most would not go that far for two reasons: The Streisand effect.
The topic of whether Bitcoin will survive the next economic downturn is complicated and multidimensional. While Bitcoin has showed promise as an economic hedge, it is not without danger. Bitcoin's performance is influenced by price volatility, regulatory uncertainty, and market sentiment.
As Bitcoin is decentralised, the network as such cannot be shut down by one government. However, governments have attempted to ban cryptocurrencies before, or at least to restrict their use in their respective jurisdiction.
Bitcoin could jump nearly 70% if the US defaults on its debt, Standard Chartered analyst says. Bitcoin could climb by $20,000 if a US default happens, Standard Chartered's Geoff Kendrick said. Not every crypto would act similarly, with some behaving more like equities, he told Insider.
In most cases, bitcoin and cryptocurrency can be garnished by judgment creditors. It is a common misconception that bitcoin and other cryptocurrencies cannot be garnished. Bitcoin accounts held at U.S. institutions like Coinbase can be taken by a judgment creditor.
Yes, Bitcoin is traceable. Here's what you need to know: Blockchain transactions are recorded on a public, distributed ledger. This makes all transactions open to the public - and any interested government agency.
Bitcoin will disappear and go to zero someday. On the other hand, he pointed out that the value of commodities such as sugar will not vanish. “The value of sugar is not going to disappear and go to zero someday,” he noted. Moreover, Rogers doubts bitcoin's ability to replace safe-haven assets like gold and silver.
- India: Over 100 million people in India own cryptocurrencies, making it the country with the most cryptocurrency owners, according to Triple-A.
- United States: China, Russia, Nigeria, and the EU are the next five countries with the most #BTC trading volume on exchanges.
Are people losing money with Bitcoin?
It's not that no one has made money off crypto. In fact, our survey finds that of those who've had crypto, 28% sold it for more than it was worth. But a higher rate of investors — 38% — sold their crypto for less than it was worth when they bought it. Another 13% broke even.
If Bitcoin crashes, likely other Cryptocurrency will follow the suit as generally Bitcoin's price action heavily reflects on market sentiment and pulls other major cryptocurrencies in the same direction. The second largest Cryptocurrency – Ethereum is a great example of such stalking dynamics.
With its massive potential for growth and adoption, Bitcoin is expected to remain a major player in the cryptocurrency market for years to come. By 2050, our long-term Bitcoin price prediction estimates that the maximum price could reach up to $11,94,927.3.
To even have a chance to stop Bitcoin, every government in the world would have to successfully coordinate simultaneously to shut down the entire Internet everywhere and then keep it off forever. Even in that improbable scenario, the Bitcoin network can be communicated over radio signals and mesh networks.
Bitcoin is akin to a “pet rock” because it “does nothing,” Dimon said on CNBC's “Squawk Box” from the World Economic Forum in Davos, Switzerland.
Blockchain was designed to be secure.
Conceptually, blockchain's design makes it impervious to compromise. Each block, or data record, is digitally signed with a 'hash' – the result of a mathematical algorithm – that is based on the contents of the record and every other record in the blockchain.
We estimate that the U.S. debt held by the public cannot exceed about 200 percent of GDP even under today's generally favorable market conditions.
If the cryptocurrency price reaches zero, holders of that crypto lose their investment and cannot sell their tokens or coins for any value.
If a recession stems from persistent global economic weakness, survival could be challenging for crypto companies, especially those dependent on speculative inflows. Tokens with real-world impact outside of the industry are likely to be more resilient, Rosenblum said.
Technical seizure occurs when the law enforcement agency seizes the bitcoin through a warrant. Bitcoin held in self-custody can also be seized pursuant to a seizure warrant, which must quantify the amount of bitcoin held and the identity of the address owner.
Can the IRS seize your Coinbase account?
Yes, there have been a few reported cases of Coinbase users having their accounts frozen by the IRS. In most cases, this has happened because the user has not reported their cryptocurrency activity on their taxes.
Cryptocurrencies typically do not come with any such protections. Cryptocurrency payments typically are not reversible. Once you pay with cryptocurrency, you can usually only get your money back if the person you paid sends it back.
Yes, the IRS has the right to seize cryptocurrencies such as Bitcoin, Ethereum, and Tether to cover your unpaid tax bills. A 2014 IRS notice declared that virtual currencies are considered property rather than currency. This laid the groundwork for the agency to start levying crypto for delinquent tax liabilities.
It's best to assume the IRS has complete transparency into your crypto activity. Crypto exchanges, including Crypto.com, are legally obligated to share customer data. If you've undergone a know-your-client process with exchanges like Binance.US or Coinbase, the IRS can track and associate your crypto activity with you.
The IRS can track cryptocurrency transactions through self-reporting on tax forms, blockchain analysis tools like Chainalysis, and KYC data from centralized exchanges. While most transactions can be tracked, certain privacy-focused blockchains and some exchanges make tracking difficult.
