Bitcoin Forum

Bitcoin was founded at the end of the "great recession", so we don't really what will happen if a recession hits....

I could see two scenarios.  People cash out their bitcoin to dollars so they can pay their bills, driving the price down.

Of, if the dollar declines and/or people are getting out stocks, there is a buying spree, a flight to safety or hard assets ... like we see with gold buying in a recession.

I'm hopeful of the latter. 

There is a third scenario which i think is possible and you missed it out. Both the scenarios which you stated above could happen together and the result will be a great fight between the buy wall and sell wall. Some people will sell out their coins and the others would buy them. The population who has major side of the wall on their side will then lead the price fluctuation to their side .

Actually, gold price dropped by >30% from Jan-2008 ($1068) to Oct-2008. Gold resumed its growth only mid-2009 when stocks started to rebound.

I think that those who really need the money will sell their bitcoins, while those who don't really need to sell them will simply hold onto them and perhaps buy more while waiting for the recession to end.

I think it is a great time for Bitcoin to become invented.

Think about it... when there is a global crisis that almost collapses the world then something comes along which can solve this issue... it is a no brainer why Bitcoin was invented at that time.

Do not give Bitcoin a chance for a World or USA recession.

Why?
It will be the moon for everyone.

The moon is our base price  ;D

Yeah, bitcoin will have ten times more value than current price in the future. By the time if we hit the recession then bitcoin will be lord of money. It will help recover the economy of that particular nation as they will have back up money in the form of bitcoin. It would be same like storing your al assets in the form of Gold which helps you give best trade in the market. Bitcoin will surely make the recession stable as the affected nation might just supply bitcoin to another nation in exchange of food, medicine, oil etc. There is huge possibility and bitcoin is yet to come into its role play.

You really think that bitcoin will be used like the way you have stated?

It's not that easy in the recession period to simply cashout your bitcoin into local currency and start paying with it. Know the basic thing, bitcoin is virtual currency the money is actually capped with bitcoin in the form of virtual reality. It means no bank in the world will allow you to cashout your bitcoin because banks will have to generate new paper money as you are requesting more supply of it. Bitcoin will never help in the recession and according to my theory it will just make it worse and we may not buy or sell the bitcoin and the value might stay the same.

I think we can consider the pre and after the fork, scenario to discuss this case because in both the cases the normal user thinks in the same way which creates a wave in the market. There were Bitcoin holders who sold most of their holdings when Bitcoin was going down in pre fork period whereas at the same time there were investors who were constantly buying Bitcoins considering long term growth. After the fork, the situation changed completely. Investors are still holding their funds and those who sold during falling market are now purchasing it at a higher price. This is identical to the recession period.

It will remain the same even in the current economic status we are on the edge of a recession and the bitcoin world is completely difference whenever there is a economic drawback or financial issue we see bitcoin rising don't know if this has a link with bitcoin it's just something odd to really happen. Maybe bitcoin has no connection with the world economy directly

There is always a portion of money that will look for high yield high risk investments. In my opinion, bitcoin is currently one of the main opportunities for this type of investment. In case of a major recession, returns on other types of investments will probably increase as well, becoming competition to bitcoin.

Yeah, this happens in the dumping and pumping phases. Basically all the phases are totally controlled by the investors themselves. I often feel sorry for them who sell their bitcoins just because bitcoins are hitting the ground at that time. They should know the real potential of the bitcoins and understand the market tricks.