Bitcoin Forum

In the blowing air of recession, people are finding a way out to secure their investment and many are reaching towards Bitcoin as a savior, so what you think? Does Bitcoin survive?

bitcoin, a savior in a recession? i don't think so. recessions are times when investors unwind risky positions rather than add to them. "cash is king" becomes the norm. retail investors are pressured to sell their holdings (bitcoin or otherwise) due to layoffs and furloughs. so i definitely don't see the bitcoin market benefiting from slowing economies and crashing stock markets....just the opposite.

it is not possible to predict bitcoin's behavior during a recession because bitcoin is still young and the market is very small and it can go either way. we may see a drop or we may see a gigantic rise in a short time due to FOMO buying. and there is enough reason for both scenarios to be possible. for example due to bitcoin still being volatile and risky it may not be as attractive as you think during a recession where everyone is looking for "safer" and "less volatile" investment. but at the same time since bitcoin has always been stand alone and not taking effects from other markets, so even if others like stocks,... are tanking during a recession bitcoin may rise and that can attract investors.

PS. your poll doesn't make any sense. reliable in what sense? a decentralized currency where you could continue to use under any circumstances? the answer is yes!

Of course. Why would bitcoin die in a recession? Worst case scenario is the prices will drop. But die? Nope.

Anyway, would bitcoin be a good option to store money in when a recession happens? No one really knows. Bitcoin hasn't went through a recession yet. While it makes sense to hold money into bitcoin(because bitcoin was birthed a year after the 2008 economic crisis), always take note that not everyone holding bitcoin knows what bitcoin is really for. There are a lot of speculators out there that would dump their bitcoin at short moment's notice due to fear when a recession happens.

Most probably. You have to remember that after all, Bitcoin is just software.
Maybe some miners will suffer, maybe some will shut down, but most probably that will happen in small steps, leaving no real bad effect on Bitcoin.


Most probably some could use Bitcoin as a safe haven to hold (or hide!) money, but at the end I expect the bigger investors withdraw and use that fiat to buy falling businesses. It may make more sense economically. It depends though how volatile will Bitcoin price still be near the start of recession.

One of the greatest advantages of Bitcoin is that it is a non-correlated asset. This means that price movements are not related to an underlying share or currency value. I believe that all investment portfolios should contain non-correlated assets to preserve wealth in times of economic uncertainty.

It's actually not the big investors who I expect to dump their coins, I personally think it's mostly those who didn't know what they put their money into. It's safe to assume that there's still a lot of people that think bitcoin is just a get-rich-quick scheme.

While I completely agree with you, it still doesn't automatically mean that bitcoin is going to perform well in a recession though.

Bitcoin will definitely survive. Why should it not?

I'm a bit on the fence how Bitcoin will behave during a recession though.

As figmentofmyass already pointed out, recessions make market participants very weary and allergic to risky investments. People tend to stay in cash rather than in any investment vehicles, especially unproven ones. Gold is a bit of an exception in this regard, but I'm afraid that Bitcoin has yet to build the trust that gold already has.

However I do believe that it will also depend on where Bitcoin will be in its boom / bust cycle. If recession hits while Bitcoin is already down it might very well act as a worthwhile hedge due to its cheapness and cement its position as uncorrelated asset. The likeliness of this happening is anyone's guess though.

There's no other way If they want a higher percentage of their investment to survive,
Then pivoting to Bitcoin is a nice thing to do.
Bitcoin has a greater chance to reach that $13,000 mark again judging by the price
right now, it will not just fall at any moment.

Gold as a hedge is a thing, and is definitely the smartest choice if you just want a hedge(and not to speculate); and is far more guaranteed to perform well in a recession than bitcoin. No doubt about that. We simply don't know how bitcoin will perform.

No one knows that. And if you think that bitcoin can't simply and unpredictably "just fall at any moment", then you obviously haven't been into bitcoin for that long yet.

Market recession will come at no specific time but many people says its coming yet the market are still moving on the right track. With bitcoin, there's no big changes we are still down and there's no new big investors as of the moment so it means market recession is still a speculation. Maybe we can feel this one if the market recession begins, and that's the only time for bitcoin to go up high since new investors will coming in.

We haven't seen any recession yet although there is a prediction that in the next year or so, the looming financial crisis will happened. With that said, we can't really tell if bitcoin could be a saviour as you have termed it. Gold on the other hand has been tested worst, (world wars) so people will still go for precious metal first before hedging their wealth on crypto's.

So it is still 50/50, in my opinion we really can't tell at this point because as I have said, we haven't cross the bridge yet and all we can do is speculate and see how it goes.

People are just having a reason to start bitcoin and recession is far from their purpose of doing so.
Bitcoin is not affected by recession, inflation or deflation that much however we change/convert bitcoin into fund

Bitcoin is the exact opposite of any stable currency , so i think bitcoin will be the safest option of investors in times of recession.
As much as bitcoin being volatile ,it is more attractive because it is decentralized. As History told us as recession risk strikes bitcoin price topped up.

As traditional financial instruments become increasingly volatile, people start turning towards more experimental assets like Bitcoin and other cryptocurrencies.

Conversely, when the traditional markets are stable, other higher risk assets are scarcely considered, since most people favor low risk, low reward, over high risk and high reward.

If you actually look at the purchasing power of USD over the last hundred years, it has fallen drastically. First due to counterfeiting, but also due to some of the anti-inflation measures that the government put out recently, like quantitative easing. Bitcoin's purchasing power has only gone up, and now exceeds all other currencies in this regard.

Even at its lowest point in the last few years, Bitcoin's PP has beaten practically every single other mode of investment at the same time.

The  fact that you've  already mentioned that people are reaching towards Bitcoin to diversify and secure their investments on the hint of a possible recession  means it has already answered your question positively! Economic recession is only temporary and eventually economy's will bounced back but if you add in the idea of a depression, I guess it will be a different story.

You are right. Just I expect that the (sum of) money of all those try-to-get-rich-quick is no match for the really big whales, the ones that have bitcoins enough to buy entire businesses.
Also the small fishes don't affect the price, since they don't buy or sell all at once, while we've seen the whales doing that.

I guess we can not lump Cryptocurrency with the losses of GDP because it is not linked with the market products and other stuff that is not decentralized, So it is not incoherent with any GDP losses so it will not be affected with a sudden change with those things, but in my opinion, I guess we can not save the market recession with Bitcoin because it is not relevant to it, but I guess because of Recession many in the market are not considering cryptocurrency as another way to get what they lose in certain recession's and GDP losses.

Bitcoin would certainly be used as a hedge for people who know about its properties. It may not be as hit as it would be right now, but once everything around us crumbles, especially the stock markets and the real estate, gold and bitcoin would be the ones which people will cling to until the crash subsides. This is said in a non-biased way since well, we know how bitcoin performed for the past 10 years, and it will ultimately be the same thing that will happen should another recession/economic meltdown is to happen.

Normally, volatile assets are avoided during a recession. As you can see Bitcoin is also a volatile asset, so I don't think that Bitcoin will attract new investors as some have suggested. However, I agree with Jet Cash that Bitcoin is a non-correlated asset and having a non-correlated asset to your portfolio is good.


Of course, it will.

True. That's also really possible.

Yes, they might be small fishes. But all together? Could be a huge ass school of fishes that could start a sort of domino effect on the markets as they slowly(not necessarily at the same time) dump their coins.

But then again, we really don't know what's going to happen. We can only speculate for now. Time will tell. :P

How successful bitcoin helps at times of recession is completely based on the acceptance. If I'm not wrong by the time of recession there won't be much of money flow. When there is lack of money flow surely there won't be much of market progress with bitcoin. Maybe based on the previous recession we can make a comparison and predict the chance for the present moment.

Only the planning and the execution from the governments functioning on different countries were the way to stay out of recession.

For now we know, that in countries live Venezuela and Argentina many people prefer BTC than own currency or stocks because of the terrible recessions (or even total economic crisis).
This may suggest that in case of a stock market crash there is a high chance that there will be a shift from stocks to BTC, as a store of value. And regulating cryptos could be one of the main reasons to persuade them.

Still, we should be aware of one thing - BTC came into life AFTER the last global economic crisis took place. Our, Linkkoin's bet would be all for BTC.

I think that if the economic downturn takes place, investing in Bitcoin and blockchain technology is a safe solution to avoid market volatility. Although it is not stable, instant transactions and decentralization are its advantages in a recession.

I guess it depends on what's meant by the recession, because it can refer to various kinds of things that are decreasing in price. So if it's the Bitcoin's recession, then Bitcoin is definitely not the best investment. However, if we are talking about the global economic recession, I'd say there's a serious threat of fiat crushing, so Bitcoin would probably be my choice. Surely, Bitcoin can drop as well during this time, but it has the habit of recovering eventually, which is not really a treat of the fiat. And if we're talking about something like the World atomic war, then no money can save us, I'd buy some non-spoiling food, weapons, warm clothing, and cures.
So the answer is that it depends on the specific situation.

I think Bitcoin was designed as an asset with the potential intent of curing or rescuing people during recessionary times.  I have also always suspected that Bitcoin was designed to alleviate poverty around the world, but I could be wrong about that.

Bitcoin was first developed and released during a very dark and difficult period of The Great Recession.  In fact, if you bought a bunch of Bitcoin during those beginning stages for extremely cheap and held onto it all, you'd be damn loaded with dough to the hilt!

I am unsure how anything will play out in the future but I would think people do not have much to lose by being invested in Bitcoin today and through the course of at least several more years as things develop more.  With an increased interest, sparked by a recession, history might repeat itself.

Precisely. One of the reasons why bitcoin exists is to hopefully protect us from economic uncertainty due to bitcoin being a non-correlated asset. But then again, not everyone knows that. I'd bet that a big percentage of the bitcoin holders doesn't even know that bitcoin was birthed a year after the financial crisis of 2008.

Dont know how you wanted to say it but am a bit confuse if you are trying to say pple think bitcoin is the best way to survive by investing and many are trying to invest in the bitcoin to make the end means , ans if we really believe it can deliver, which I will say yes , cos bitcoin in 10years ago was way below cents in dollar and as at today its standing above $10000 per one which I also believe that in one to two years now it will be bigger than $100,000 so if you can invest little by little as a form of future plan and store of value , it will pay in due time.

Based on CNBC, recession opportunity next year nearly 50%. The tendency of trade heats up cause the weakening economy. This condition, many countries respond by making fiscal and monetary policies. Investing in the stock market cannot guarantee profits. In my opinion investing in mining industry or bitcoin will be very profitable.

I am very sure that bitcoin is persisting, because Bitcoin and the global economy continue to increase instability, it is very possible that any major change in the economy today can reach a paradigm shift that moves more people towards Bitcoin. Digital currency is the most important asset that can be accessed by everyone, like most of the respondents who don't know what cryptocurrency is. Because Bitcoin and the global economy continue to face increasing instability, it is very likely that any major changes in the economy today can lead to a paradigm shift that is moving more people towards Bitcoin. Let's wait and see!! ;)

Satoshi Nakamoto developed Bitcoin after the economic crisis that we had back in 2008. He realized that bailouts to Banks was not the solution for the problem, so he created an alternative safety net for people to get out of the Fiat system and to have full control over their own wealth.

So when the global economy finally collapse, people will still be able to use an alternative currency and they will have stored their wealth in something that would increase in value. < In economic hardship, people turn to investment options with a store of value and Bitcoin would provide these investors with a store of value.>  ;)

remember the hashed message in the genesis block about the bank bailouts? i think bitcoin was more so a response to the socialized risks around fiat money and banking.

recessions will inevitably happen and i don't see how bitcoin could rescue people in those times---it doesn't provide jobs or put food on one's table. but keeping value in bitcoin does prevent governments from stealing your money through inflation, bail-ins, bailouts.

When recession approaches every product value goes down, retailers are bound to sell their holding at a low price so I do not think BTC investment can save anyone from recession. Fiat currency may be savior in recession times. Bitcoin is very volatile in nature so its a bit difficult to predict its behaviour. It may react opposite to anyone expectations and start growing but if we talk about risk then Bitcoin may not be the right investment option in recession period.

What? Of course not lol. Take a look at what happened to Venezuela. Did fiat currency save them? Hello no. It was actually the opposite. Take a look at what happened to the Venezuelan Bolivar's value: https://nypost.com/2018/08/20/venezuelan-bolivar-is-worth-more-as-toilet-paper/  It's valued so low that Venezuelan Bolivar bills were pretty much on the sidewalks.

While I'm not saying that bitcoin is the right bet to make in a recession, it may definitely be better than holding fiat.

But if we are talking about the US dollar and Bitcoin, so I think that Bitcoin will only be dropped in value, but this will not kill it, unlike the dollar, which can get default

yes of course,being the future of currencies has it's ups and downs.bitcoin despite the number of times it has fallen over the years,it has also risen over the years.It's just a matter of understanding the market and great benefits will be made.BITCOIN IS THE FUTURE!

I can agree that Bitcoin isn't solution for recesion. In certain way it can help if you change your coins into fiat at the right moment. Although fiat money isn't directly linked to cryptocurrencies is hard to predict how the price will behave in the time of recesion. That is why it would be wise to split funds between fiat and crypto savings.

I think that it is recession that will have effect on bitcoin, I mean positive effect and not the other way round, because in the event of global recession, people would want to look for a safe haven where they would like to keep their money and I think with the exposure of bitcoin to the world, they will want to consider bitcoin market first, and the good thing about that is that money will stay more in the market than it leaves, and there will also be high demand on bitcoin because people might place large amount of money in the market to buy bitcoin, so this should make the price of bitcoin climb so high which after recession would have even made the money of such individual double And be returned back to their traditional bank.