bitcoin economy – 2008 crisis in a crypto world, a thought experiment


AFAIK, the root cause of the 2008 crisis was that subprime mortgages were being credited and bonds based on those poor/risky mortgages were being rated as highly safe. Either due to corruption (mostly) or incompetence of the rating authorities.

IMO, crypto could not have helped fixing or flagging this root cause earlier in any way. So when the mortgage defaulting finally began, the banks went down, money stopped circulating, joblessness started like never before.

So the govt had to bail out the banks and financial institutions to restart the stuck economy. The govt NEEDS and sometimes prints the money to fund itself and/or the economy. Is that not just govt’s way of saying: “We messed up. We won’t bother you with adding more taxes(which most people cannot pay by the way), we’ll just make you all poorer in equal proportions so we can all stop being stuck with no way out!!”?

All in the name of being able to continue to run the nation of course.

Whenever someone is singing the crypto praises, they mention the 2008 crisis. I simply don’t get how a crypto would have been able to help in a stuck economy or prevent it from getting stuck in the first place.

The more I think about it, the more I feel that crypto taking away the govt’s ability to print money would have actually harmed us even more in the 2008 crisis. We would have been stuck for way longer know!?

Am I being naive in thinking that the govt REALLY had no option but to bail out the financial institutions in order to unstuck the economy?

Been looking for answers for a while now, someone please please please explain this to me!! Thanks in advance! 🙂 🙂

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