Bank Runs: The Major Problem Russia, China, and Cryptocurrency Are All Facing

Russia, China, and the crypto market are all faced the same problem in 2022. Failure to address properly would cause massive instability in the two countries and the complete devaluation of multiple coins within the cryptosphere. That problem is bank runs, an issue that financial sectors have dealt with for centuries. This video explains how each of their problems is unique and what each is doing to try to solve them.

0:00 Parallels in Russia, China, and Crypto
0:49 What Is a Bank Run?
1:53 Bank Runs Are Self-Fulfilling Prophecies
3:20 Sanctions Causing Bank Runs in Russia
4:15 What Is Deposit Insurance?
5:02 How Russia Solved Its Bank Runs
6:50 What Is a Stablecoin?
8:26 The 2022 Crypto Crisis
10:59 China's 2022 Bank Run Problem

From Agencia Brazil:

From Bundesarchiv:

From OSCE Special Monitoring Mission to Ukraine:

[marcusmoonstein]

Every video on YouTube that has the word "cryptocurrency" in it's title immediately has it's comments section flooded with fraudulent crypto trading advice. Love it!

[doords]

So to summarize

1. Conflicts in any country causes people to dump their currency and go to Dollar
2. Cryptocurrency has been messed up by scams
3. Dont fall for investment scams that promise a high return even if all your friends and family investing in it. Learn to go against peer pressure.

[fitzwilliamdarcy]

Good analysis. Indeed, the lessons why financial regulations were first put in place have been ignored by those who have lost lots of money during this "crisis". History has a bad habit of repeating itself. Governments and banks do serve their purpose after all.

Whilst I am ambivalent about people losing their life savings taking risks they do not understand, I am intrigued by the possibility of contagion to financial stability for the rest of us, and ponder whether and what regulations are indeed necessary to stop negative impacts to the rest of us.

[ianng]

Bank runs explanations are good, but can you put some lines on maps while you do it?

[Seauchemin]

Excellent article. I never really could wrap my head around how crypto works. You definitely gave me a foundation in 10 minutes. That’s rare.

[Aegelis]

Very cool, thank you for the explanation! The summary makes a lot more sense than trying to figure out what's happening with bits and pieces of daily news.

[randiaune]

Successful people don't become that way overnight. What most people see at a glance- wealth, a great career, purpose-is the result of hard work and hustle over time. I pray that anyone who reads this will be successful in life..

[deaths]

Really good video. It answers some small questions on the back burners in my mind in reference to bank running in general (With it logically being a self fulfilling prophecy), and it does this while opening my eyes to something I've never heard of (And relevent as it explains why Russia somewhat bounced back to what I thought would've crippled them for much, much longer than it did) Great video. Imma hit the big red button now lol

[patrickkeane]

Thank you so much for not having unnecessary distracting music

[eslynx]

11:09 “Chinese law dictates that citizens are limited to using local banks for their savings." This is not true. The restriction applies to the banks and only small local/regional banks(often has village/town in their names), not depositors. They shall not get deposition from outside their registered operating regions. (Someone in control of those small banks did some shady business and most of those savings from all over the country didn't actually went into proper bank accounts is likely what happened but who knows.)

[Mr_Fu_Manchu]

Like my old man used to say, you play with money, it is just a mater of time until you lose. It is harder to make money actually producing something useful for society but, on the long term, much more rewarding. And another thing, if it would be easy, everybody would do it and get rich.

[alouie]

A rising dollar is pounding BTC, Ruble and Yuan. With the US having the highest 10yr treasury yields, capital flows are coming to the US to capture the higher yields and driving up the US FX rates. China is in the demographic death spiral and is based on extreme levels of leverage.

[lomborg]

The last thing you’ll want to do, when your currency is worth nothing, is to “print” more of it. That’s how inflation is increased.

[bobjoatmon]

Ultimately, crypto is a fools game.
And FYI I used to mine Bitcoin when it was under $140 with 5 regular old PCs but understood that someday it would shoot up but then fall....
And I just ethically didn't want to participate so that when that someday came I would have some responsibility for the economic damage others would experience.
It's called "enlightened self interest" and the world would be a better place if more people followed it.

[michalmalak]

Great video. Hey is that Mount Washington Hotel in Bretton Woods at 7:28 ?

[nonononono]

The terra thing was worse than it seems based on your explanation. In your video, you explain that the way stablecoins work is that you give the stablecoin operator some $usd, and the operator gives you $stable that is equivalent to the USD in exchange. For example, you give tether $1000 usd, and they give you 1000 usdt(tether's stablecoin). At least in theory, tether has its money in things that it expects are liquid and safe that it can get back relatively quickly if needed. However, terra did not work like this. It is what is called a seigniorage stablecoin. I was going to do a writeup about terra, but I'm not super great at explaining things and if you are interested I recommend you search for one of the many youtube videos on the topic. but to make things short, they had a mechanism where instead of exchanging 1usd for 1ust(terra's stablecoin) you could exchange luna(the terra network coin that is not a stablecoin) for UST and vice versa.

[prjndigo]

It would have been far far funnier if someone had started a rumor that coffee filters would be impossible to get.

[benjones]

I heard (on youtube) the toilet paper shortage was also that everyone was at home so not pooping at work - so big work loo-rolls weren't getting bought and instead more small home loo rolls were getting bought. Also the just in time supply chain seems to have been exposed as a grift imo.

[Michael-]

It’s like Christmas when I see a new video

[GlucoseGuy]

This was a very interesting video. I would have thought that electronic transaction world we live in, would effectively stop runs on banks. I'd be curious to hear more about what would lead to businesses to stop taking electronic payments.