Bitcoin Forum

The stock market is doomed to face some difficult times ahead,the trade wars between the US and China is getting worse and it calls for concern that we may be on the brink of a global economic collapse. This forces many asset managers to look for alternatives asset class to spread their risks.The choices are always in favor of assets which do not have a positive correlation with the stock markets.bitcoin seem to be a perfect fit.Currently, there is so much attention on Gold after the recent dip by bitcoin,Gold is at a multi-year high.With a possible recovery by bitcoin,we may be seeing huge influx of cash into bitcoin from funds manager as they cash in on the tide. Wall Street may finally stick with bitcoin.
https://www.newsbtc.com/2019/06/06/gold-skyrockets-as-bitcoin-price-plummets-which-wins-battle-for-economic-hedge/

Gold is traditionally considered to be the safe haven by many investors and fund managers especially on times of trouble. When there is that pervading sense of gloom, they are looking for something stable, valuable and reliable thus gold easily comes into the picture. However, there is that digital mirror of gold and we call it bitcoin. Bitcoin is likewise valuable albeit it can be volatile but for someone looking for an opportunity for a greater returns this is the best choice. Thus, if things are turning out to be worse in the global economic scene as the result of the ongoing trade war between superpowers China and USA, many can hop into both the real gold and the digital gold.

i have the same views, more or less. i believe that because bitcoin had never had any connections to any of the other markets including gold, stocks,... and instead have always been a stand alone market moving for itself, that means that it can be considered an excellent choice for diversification and in cases like a collapse an escape route for investors to take. which is why i believe that in case of an economic collapse bitcoin price can rise with a fast speed.

but also bitcoin is still unpredictable and small. so we can't really be sure about what will happen in the chaos in that scenario. not to mention that chaos itself creates a lot more unpredictability.

this is a commonly held belief among bitcoiners---that funds/investors will search for a new class of assets to invest in if the economy crashes.

but why? that's not what usually happens during economic crashes. what usually happens is "cash is king". everything crashed during the 2008 financial crisis, including gold. why would money flow into crypto this time?

We already learned what will happen if the stock market will be doomed again or f there wll be a crisis that will rise again.Bitcoin can be an option if and only if managers needs to look for alternatve assets to spread their money and invest.But most probably that thing wont happen.

Gold is the safest choice if ever this trade war will continue.
The stock market has been doomed by different uncertain situations before and it's a good thing that people could rely on gold and bitcoin as an alternative. The trade war that's happening between China and US will affect the stock market but it won't affect blockchain and gold that much.

Hmm, so the Gold is now growing and btc continuously drops. That's very hurtful to know but let's admit the truth, I thought btc can now exceed the $10k mark but we can see in the market trend that we're not yet there :(. So disappointing.
But anyway, I've already seen such kind of dips and actually even worse than this (remember the bloodbath after China's banning of ICOs?) so it doesn't scare me any longer. I 100% believe that btc can and will bounce back for the good of all of us.

Stop spreading panic.The global economy might face a small recession due to the USA/China trader wars,but it won't be a "collapse" or another great depression.Bitcoin is not an alternative,because it's not a safe heaven for all investors.

I agree, they are dramatizing the US vs china trade war too much. I doubt both parties will let the economy collapse they'd be both
suffering severely since they have the biggest economy in the world.

Yes, bitcoin is an alternative to fiat currency, like gold. However, there have been predictions of an impending economic collapse within the alternative media for about a decade, and thus far it has failed to materialize. More than likely central banks will keep the current system propped up by inflating its way out of debts, boosting up the price of gold and perhaps bitcoin. For now at least, inflation seems mild.

A global economic collapse has been predicted for years, but economists and politicians are trying to mask this collapse with manipulation of the markets so that the ordinary people would continue investing in worthless stocks and bonds and other financial instruments that they control.

I have seen this happening for years now and I can also see that the tax bailouts cannot save the global economy for much longer, so a economic collapse is inevitable.

Bitcoin is not linked to that, so you will be relatively protected from that. <Until institutional capital are allowed>  ::)

Gold and cryptocurrency are two classes of different assets that can serve as a safe haven for investment during the period of the global economic crisis. It is impossible to say in advance which of these assets will be the best in terms of profit in this period. Gold has good stability, but not a very high percentage of profit. Cryptocurrency can make a big profit, but investing in it is more risky. Therefore, in a period of economic crisis, it is better to invest in both of them, the only question is in choosing the right balance between them.

People also often mix up save haven and new investment class, safe havens are meant for preserving value so they have to have minimal risks, while new investments are meant to be used to increase value, but with the risk. Bitcoin is unlikely to be a safe heaven, but it can attract attention of some investors, because they will be looking for new opportunities, but this doesn't mean that the whole Wall Street will jump on Bitcoin, in fact this effect might even be barely noticeable.

Many people will invest in bitcoin instead of gold, in the upcoming global market collapse.
Bitcoin value may go beyond our expectations (exceed expectations) if this happens.

The investors that seek security will invest in gold.The investors that seek big profits and will invest in cryptocurrencies.The main question is,which "crowd" will be bigger?That depends on the markets.

I don't think the market will collapse even if now we have price drop for bitcoin, but i think over time the market will recover and in my opinion i think bitcoin can bring more profit than gold.

i seriously doubt that what OP is saying about "huge influx of cash into bitcoin" can happen under any circumstances but what i think will happen instead is an increase in the current influx of money in case of a global market collapse.
the reason is due to the fact that bitcoin is still considered a high risk asset, you may not know it yet but it is true. and that means investors are still acting cautious when it comes to investing in bitcoin even as a hedge.

Gold and bitcoin are valuable assets, gold has a very good price stability but the profits are also stable not too high, while the bitcoin is at high risk but the opportunity for profit is also greater than gold.

I'm sharing the same thoughts. Once the traditional stock markets collapse, the money has to go somewhere and the best bet everybody has on their list is either bitcoin or gold (or insert any other asset class in here). We all know that the bankers and financial magnates have already thought about this before anybody else does, and so the recent movement in gold is seen, probably due to some wealthy elites transferring their assets on the said precious metal in the mean time. 


A lot of investors are still considering the fact that bitcoin indeed carries high risks. In a time of uncertainty, it's extremely dangerous to hold a high risk asset because you'll never know when would everyone dump on you, so yeah, I'm still 50/50 on bitcoin and crypto receiving a huge amount of attention by the time the financial crisis happens.

Gold is still the investors first choice if there is even going to be a global depression. Bitcoins is though an alternative asset but it will be chosen by most investors that can tolerate risk and will be willing to forgone their investment. Gold is still far better option than Bitcoin in case there is a global market collapse.

I would not say that Bitcoin is the substitute to stocks when it comes to portfolio reallocation. Portfolio managers have certain restrictions for highly volatile/risky assets that prevent them from hoarding more cryptocurrencies.

Do they collapse at the same time? Well, I only focus on the cryptocurrency world and in a week, the crypto market is very decreasing, going to dump again after having a good recovery. Are there any global issues related to the digital asset, investment, and also market?

For stability the choice tends more to gold,The quicker gains certainly do favor bitcoin,it is easier for bitcoin to achieve a 100% gain in just a couple of weeks,it will take gold even years to achieve that same feat

Depends... How restful would your sleep be?

1.  All your liquid net worth on a Nano Ledger at the bank or in a safe.

2.  All your liquid net worth in gold bars at the bank.

3.  A balance between 1 and 2?

How many can honestly answer 1?    The possibily of millions and zero.

Expect the worst if these two giants will continue to do this so called trade wars as many countries with different proud commodities are depending with these two great nations. Although that the world is have been in this situation before but hopefully they will resolved their differences as soon as possible as we are afraid of another World economic crisis again.

Bitcoin also heavily relies on the market volatility to (re)generate interest from most investors, whether it has the ability to rapidly go up or not doesn't make it a safe investment in a time of trouble. Usually, markets are highly susceptible to major events throughout the world. Because investors are more inclined to invest in more stable and safe assets in times of significant concern, like the poster you replied to mentions, Bitcoin becomes far riskier and even more volatile as the whales begin to exit the market. Gold is a great staple investment for anything less than an end-of-the-economy scenario, and probably better for those situations too anyway, in the eyes of most investors that would participate in the marketplace.

Precious metals have almost always been a safe investment in any case, that won't be changing soon. I'd almost say that a weaker crypto market will be more beneficial to users in the short term, since we'd be able to accumulate more, even if it meant short-term losses to portfolios.

I don't think they collapse at the same time because cryptocurrency, stock, gold, or the other market is different and I don't think it's related between each other. But if the global issues are happening and cause stock, gold or the other market change to the different way, then maybe it's happening too with the cryptocurrency. Unfortunately, all of that still be on the mystery because we don't know what exactly will happen later if that is really happen.