WHY TOMORROW IS SO EXCITING AND SCARY? AND SO IMPORTANT FOR CRYPTO?
 | I'm sure many of you follow the news coming from France, where for the past several weeks the so called ... |
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INTRODUCTION
... "yellow vests" are protesting against their ruling party. I found those events very fascinating and important but at the same time I'm staying away from making any judgements or sharing my own opinion.
Generally I'm doing my best not to talk or write about politics, religion and migration as I see those topic as very sensitive. And this is not going to be a political post and my wish is to avoid publishing any sensitive comments in our discussion today.
What I would like to focus on is quite straight forward: how events that are currently unfolding in france can affect the global financial system and attract more interests of regular people towards crypto?
TOMORROW A NEW ERA BEGINS
 | Personally, Im highly impressed with the level of creativity of all those communities in france, which are involved in the yellow vest protest. |
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The new idea shocked me as something so very simple and yet ... noone ever thought about it.
Please allow me to quote www.rt.com:
Yellow Vest protesters are hoping to trigger a bank run with a nationwide coordinated cash withdrawal. By threatening the French financial system, protesters say, they want to peacefully force the government to pass their reforms.
I hope I'm not acting like an excited teenager, but I do believe that this movement and this particular action is able open "doors" which we never tried to open before. That can put tremendous amount of pressure which may result with heavy financial consequences. And my question is: who would pay all those consequences at the end of this turmoil?
WHAT MAY HAPPEN NEXT?
So what may happen tomorrow? In simple words: banks do not have enough reserves to provide customers enough with money when many people are trying to withdraw at the same time. They may introduce limits and find ways to deal with the problem, but that would most likely escalate the current tension to another level. And could potentially bring the french banking system to it's knees. Or perhaps Im wrong and we should also consider different scenarios?
I'm wondering what are the possible consequences for everyone involved. General population, current goverment and french banks. And can in your opinion this turmoil affect the EURO currency? I would love to know what you guys think.
HOW CAN THIS AFFECT CRYPTO?
Perhaps Im too optimistic, but I do believe that this event will benefit crypto greately. Not with the huge amount of people moving their wealth from traditional banking system to crypto. That will most likely not happen right away.
I forsee that more people will start being aware of the current financial problems and threats. Micro and macro scale. And we need it in order to bring mass adoption to masses. We need them the be willing to look for alternatives and learn about their options.
SHARE YOUR VIEW WITH ME
I wonder how many of you do follow those protests and can remotely predict how things can play out tomorrow.
And guys, PLEASE REMEMBER: no direct political comments. Im sure we all don't want some of our opinions to be on blockchain forever. Completly public. So share with me your opinion on mentioned issue with that in mind.
Link to full article: https://www.rt.com/news/448426-yellow-vests-financial-bank-protest/
Yours
Piotr
The way that I see this whole financial problems this world been having for eons is. to not panic.always try to be wise with your resources.spend, save and invest wisely.and never put all of your eggs in one basket.this way of living will give you no need to ever panic.
i don’t really trust banks.its there business to make money.given people the illusion that they have your best interest when they really don’t. Knowledge Is power. Educate Yourself when it comes to important matters such as money.then there would be no cause for panic.money is a very powerful tool.and it should be treated as such.
(I hope you all can understand me?)I often have to ask that question)😊
Athena
I'm afraid we need centralisation and power structures and borders and limits. However... public crypto blockchains can be for the individual, for liberty and help create a balance where structures fail.
Do we want the Yellow Vests to succeed? No. France needs to adapt to climate change, but it's painful.
Great comment @ade-greenwise
Indeed we do need some aspects of our life to be centralized. Decentralization is not a solution for all our problems.
Cheers
Piotr
you are wise and I agree with you and that is my motto. diversify and be smart. so why is everyone running around like chicken little thinking the sky is going to fall.
People act in that manner do to lack of knowledge .
true
Thank you for this genuine and amazing comment @originalathena
Loved it!
Your welcome. Thank you for the kind words @crypto.piotr 😊
You got a 25.11% upvote from @brupvoter courtesy of @originalathena!
Thank you 😊
Thats an ordinary situation for any financial system. In such case central bank usually buy extra commercial bank bond on its balance sheet providing needed liquidity. Also it could suspend some of its own normatives and restrictions.
Bank run is a known danger, everyone knows how to fight it.8
Posted using Partiko Android
I dont think we ever had a chance to get to know each other. Great comment @cryptoheroes
How? I guess Im not everyone as I really dont know how to fight with bank runs (limiting withdrawal is not a solution as it will only give more ammo to protesters).
I was also wondering how come banks seem to struggle financially quite often as well and goverments had to rescue many of them already in the past.
It seem that most people (including majority of yellow vests) believe that they are getting poorer and banks are only getting richer.
But if reality is that we're having less money (or our money has less power) and also banks struggle with lack of resources, then ... WTF. Then something is really wrong with this system.
I don't get it. Because it does look like entire world wealth does not exist really. Everyone has debts and banks also struggle. Insane.
Cheers
How banks work essentially.
There are banks and there is a central banks which surpervises them.Lets assume that CB only need to preserve mandatory reserve ratio. Imagine you put 1000 usd at deposit ant mandatory reserve ratio is 10%, so the bank needs to put 100$ to a special account in CB and could issue credits on the rest. The deposits come and go and credits come and go and what a bank must preserve is that his reserves in CB be no less than 10% of his credits. Okay.
Now yellow wests come and start to massively withdraw their funds from a bank, so that bank is dangerously closing to 10% treshold. What next?
I see 2 options for a commercial bank.
So there is no real problem here for a bank.
Dear @cryptoheroes
Thank you for your amazing comment. I appreciate your time and effort.
Thank you for sharing your knowledge with me. I wonder if it will all really play out the way you said. I think that current events will not bring any bank down, but as result most of those banks will lose their money flow.
And having difficulties with money flow = very difficult time for company. So it is sort of a big problem as well.
ps.
I was just wondering lately, why you didn't ever post anything on Steemit. Your comments are very mature and valuable, and yet you're not publishing any of your own work? Unique.
Yours
Piotr
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People fear change. It is always much easier to just accept things as they are. Thanks for the heads up. I will be watching tomorrow with great interest. Hoping for the best for the French people.
Thank you for your comment @clayrawlings
Have a great upcoming weekend
Piotr
Creating a non profit bank is a great idea, but for making it a reality a vast starting capital is required. So how can the yellow vest protesters collect that amount of money? Unfortunately I think crowfunding would not be enough.
Thank you for being so responsive and for your kind comment @ropaga
That is interesting and unique idea. Just wonder how if it would be even possible?
Yours
Piotr
The idea of non-profit bank is not new. However, most of the non-profit banks were created by the government, so they are part of the establishment.
In Spain for example those entities, called savings bank, existed during over 150 years. They spent at least 50% of profits in their foundations and the remaining profit was used to increase their reserves. However, as political parties and trade unions started to control those banks, corruption started to spread.
Starting by 2010, most savings banks in Spain were sold (or gifted) to private entities. Some of them are still owned by the government but they will be sold as well to private entities when the economic situation gets better.
Savings bank in Spain
The Bank of Spain figures in 64,349 million euros the cost of aid to the bank
Dear @ropaga
Thank you for your amazing comment. I appreciate your time and effort.
Oh seriously? Thank you for telling me. I will learn more about this idea.
thx for those liks.
Yours
Piotr
Should this Idea be carried out, it going to bring down the banking and financial system of France.
Of course this will happen and some local banks might even shutdown.
In a way, this move is good for Crypto and some extent their protest or anger to the point of never having anything to do with banks. As such, they might look for other alternatives and it is at this point that Cryptocurrency comes in to play.
Thank you for your mature and wise comment @akomoajong
I really wonder how will it play out.
Interesting report about the "gillets jaunes", although I understand to have some reticences when we publish some opinions about politics in the blockchain my impression is that we shoudn't censor our own.
In fact this is an important factor to promote the blockchain as a place of freedom against the traditional social media where the opinions can be censured by the owners criteria.
Sadly nowadays the politic discussion isn't very accepted by many people, arguing that is impolite or inconvenient etc... I wish that this weren't the case of Steemit.
Talk between us, with people that don't share our same opinions is a key to understand the others pow.
My thoughts about this phenomena the "gillet jaunes" are that they're very favorable to the development of this kind decentralized technologies, as a force opposed to the centralization of the goverments and the increasing power of the private companies.
Have a nice day :).
I appreciate your comment a lot dear @palasatenea
It's just to scary to discuss politics. Especially on blockchain.
We're on the same page here.
ps.
I was also wondering how come banks seem to struggle financially quite often as well and goverments had to rescue many of them already in the past.
It seem that most people (including majority of yellow vests) believe that they are getting poorer and banks are only getting richer.
But if reality is that we're having less money (or our money has less power) and also banks struggle with lack of resources, then ... WTF. Then something is really wrong with this system.
I don't get it. Because it does look like entire world wealth does not exist really. Everyone has debts and banks also struggle. Insane.
Cheers
Piotr
I think that banks are international. So if the people from one country withdraw funds they get it from other country's. And there are the businesses with more moneymoneys multinationals they don't withdraw their money. The gaspumps etc and ... who are demonstrating the normal people the workforce they don't have 20k on the bank they are in debt mostly because of the nifty underwater trick all country's pull keep people working keep them in debt... So I say let them and you see that banks will just go on.
Great comment @hans001
I dont think we ever had a chance to get to know each other.
Banks can help each other, but it is not happening automatically. Those things need time to organize, approve etc. And banks may not be willing to loan money to french banks, knowing that those money will be most likely lost.
Im not so sure. It really depends on scale of this behaviour. Banks will not collapse. That's for sure. But they may lose their money flow and generally will receive heavy financial blow.
Have a great upcoming weekend
Piotr
I love this idea for its sheer inventiveness and originality. Though I think when it comes down to a monetary fight between the banksters the ordinary folks, the banksters are gonna win hands down. They have more resources AND they have the government on their side.
Thank you for your comment @natubat
Question is: what would it means that they will win? I think both sides will lose. Entire event will make huge financial damage and banks will surely try to find a way to push it on people. But it's hard to take away money from those who have already nothing.
Have a great upcoming weekend
Piotr