Bitcoin Forum

On March 12th, Bitcoin witnessed one of the biggest daily drops in its 10years history. While Bitcoin was clearly not the only financial asset that experienced such drop, it still came as a shock to me that Bitcoin will perform so badly in a liquidity event.`

As stocks, crude oil, mutual funds and other financial assets drop, Governments around the world will tend to print more fiat to support and stimulate their falling market, therefore, moving assets to Bitcoin which have a fixed supply with block halving just 60days away seemed like the rational thing to do. BUT THAT DIDNT HAPPEN.

Well, I remain bullish on bitcoin, because $5500 and a market Cap of about $100B doesn't represent the true value of the asset.

Bitcoin did appear right after the year of the world economic crisis, so I do believe it was created as something that could, among other things, stay unaffected by such events and thus be a solution of sorts. I did believe that people would move their investments into BTC in an event like we're experiencing right now, and I was very surprised to see Bitcoin go down that much. However, perhaps this is just the first reaction of people panicking and selling everything they can. Maybe Bitcoin will recover fast and prove that it can be a safe haven after all. We just have to wait and see where this is going.

Read my older replies on this subject:

Bitcoin is created for a faster and cheaper transactions, this is my thought. On a daily drops yeah and we are all shocked because of that, but we should remain calm and be positive. Bitcoin proves to us that its not a totally a safe haven, this is also a big question for me but still I believe on the process of bitcoin and I know it can happen again one day.

We can't blame people who are panicking just because of this pandemic happen and we are in an economic crisis which is all price stocks are down in the market. Bitcoin was created as an alternative payment method based on the whitepaper stated but people threaten this as their good assets. And now, they need cash for the necessity when they stay at home to avoid the virus. 

Due to the virus has been keep spreading, of course, traders also need money to have a supply for their family and I think this is the cause of all was experienced downtrend even in the entire market and government has nothing to do with it. Remember that Bitcoin isn't stable value, it will always fluctuate and now we feel on it through by the volatility.

Bitcoin was sort of created for decentralized transactions, cheaper and safe ways to transact without others knowing. Additionally, the economy has dropped down throughout the entire world, so I guess that could be said to be one factor why it was affected quite hugely. In the end, it hasn't seen any days of being a safe haven, so I guess the idea of it being one isn't enough to support it as one. Plus, compared to other safe assets today, you could say that Bitcoin is still pretty young so maybe in the future? After all, most people see Bitcoin/crypto as an investment, and not as a safe asset, sadly enough.

Still, this probably was a great chance to see how the current Bitcoin could hold up whenever a possible crisis is coming up, one that is quite threatening to the economy. It didn't hold up to our expectations, yes, but it may change quite well in the near future no?

To most people Bitcoin is either an asset or a bet. In conditions like these both of those areas take an absolute hammering. Assets eventually come back. Bets, which is probably the majority, go away for a while apart from those with the self discipline who eventually win.

You could also say gold and silver are created for this moment yet look at there prices tank also. All the goofballs yelling about economic collapse and telling you too buy there gold/silver for many years now didn't know what they were talking about.

What do you mean "created for this moment?" Do you think Satoshi was thinking of an economic crash when he created Bitcoin? I don't think so. Do you think Satoshi was thinking of a possible pandemic when he came up with the idea of Bitcoin? It is not true either. Satoshi was just creating a reliable currency, one that is much better than fiat currency.

Sheesh.

It's literally embedded in Bitcoin's very first block.

https://www.thetimes03jan2009.com

That's a statement of intent if ever there was one.

This particular set of circumstances we're experiencing may turn into more than a standard crash and Bitcoin certainly won't save you, but when it's over the normal monetary system will be weaker and more mutated than ever. That's one of the reasons why he created it.

I think bitcoin has become more of an investment platform for individuals and is following the stock market closer than others would have hoped. I believe it was created for this kind of situation, but many people are not trusting it for their investments when crazy things like we are seeing in the stock market happen.

At times like this and where fiat is still the most used currency, there is no investment safe haven. If only all grocery stores would accept Bitcoin as payment, the fiat value won't probably drop as it already did. Right now, Toilet paper > Fiat > Bitcoin

Bitcoin was created as a response to some other type of crysis that appeared almost regulary and that was economy crysis and desire to be less dependent on banks.
Now we are having some health situation where people panic great deal, without reason to my opinion, but I don't think that Bitcoin can help with that in any way. And we also have people who panix about Bitcoin price too. I guess we just have to wait for all this to stop.

No it was created for wars not pandemics

Basically no store of wealth works for a pandemic .

You could argue my statement with real estate 🏡 as the only possible thing that works for pandemics.
The place would need to be on an Island 🌴.
Only one home/compound.
Fully self sufficient.
Solar
Multiple large propane tanks.
One year of food.
weapons tools ⚒️ etc.
air filtration.
water filtration
water stored.
bomb 💣 safe room.

I would image this is the only store of wealth that should gain value due to a pandemic.

This type of wealth  belongs to very few people.
I just described a multi million dollar 💵 property.

On a smaller normal level. Homes 🏡 may become more valuable.

Set up a home to store food for a month.
Set up a home with quality air filters.
Set up a home with quality water filters.

Your home 🏡 becomes very valuable if you can self isolate with ease during a pandemic.

I could stay in my home for the next month right now if I chose to do so.

I have food.
I have air filters
I have water filters.
I have fuel for my propane generator.

Almost all of the above was in place before the pandemic .

I was a bit lite on food 🥘. But the other stuff I had.

If you are poor you get fucked.
If you have an apartment you get fucked.

Hoping this clears up by April 30.

It's kinda sad that Satoshi created a currency under which an economic crisis caused by a bad monetary policy is impossible, and still this currency is heavily influenced by fiat. Maybe it will always be like that if Bitcoin will keep being viewed as an investment and fail to achieve higher adoption. Even gold tanked during this crash (though not so much), so what chance did Bitcoin have?

Your are right if you said so, but let's remember that, this is the first test for Bitcoin since existence and to me it has done some good jobs by measuring with other assets like oil, gold and metals. Bitcoin will bounce back to it original purpose and we all shall see. Possibly the whales have done something strange and we have fallen to their tricks, bet you, many will regret their actions when the time come.  But for me, am not giving up on Bitcoin and not of cryptocurrencies.

Sorry it was made as protection from wars. It allows you to flee and still have wealth. In  the country you run to.  It is the only wealth storage that is fully mobile.

This is why it has value as wealth storage.
Has other value due to it being able to create wealth from power grid via mining.

It is pretty much worth less for pandemics.

I have mentioned in multiple posts since 2012 that it allows you to flee from danger .

I should have clarified this better.

You're right though but, Bitcoin was created for internet money and not another. The current crisis rounding the human world today have been seen as a global pandemic which have affected all areas of human life. Not only Bitcoin that received the dip, the oil does and gold, metals, let's not forget that: this is the very first time for Bitcoin to have experience such even being a volatile coin. Bitcoin will bounce back to this challenge and those haters will hate the more. This is a global pandemic and not just a crisis.

BitCoin was first said to be better, faster, cheaper replacement to currency.   That narrative FAILED, after 10 years, BitCoin has never been used in any significant amount to pay bills, make purchases, etc. etc. etc.

When bitcoin failed as a usable currency, they tried to pump up BitCoin is as " DIGITAL GOLD " with a massive advertising campaign.   Bitcoin has now FAILED its first test as a safe haven asset also...   BitCoin is dropping faster than most other assets once the Economic Crisis started.

Do not be a FOOL 🙉🙉🙉🙉   There is no " value of the asset " ,  BitCoin can go down to near zero.    BitCoin has only known good times, when everything was going up in the bubble economy.   The moment the economy started to go bad, BitCoin FAILED and dropped like a rock.   Just wait to see how much more it will drop as things get worse !!!

Hard Facts

This also has to do in part to the block size I think and people attacking the sizes by sending small transactions deliberately. Also, the transaction fees getting expensive during these attacks doesn't help.

It has never being a safe haven right from the start but people always wanna make it look like their owe life depend on it. I still believe those people that hodl bitcoin right from the beginning till date will not feel the impact of massive fall. Bitcoin has been an asset that no one can predict its future and this is part of the reason while many people still think it does not meet the requirement to be independably use as a currency.

WRONG !!!!

More people are GETTING OUT of BitCoin that are getting in, hence the price crash.   The smart money sold their BitCoin and took their money off the table, and let the HODL take the losses.

Even if you are wealthy, it would be UTTER STUPIDITY to lose 1/2 of your wealth in a matter of weeks...  It would be even dumber to lose 75 % of your wealth in a few more weeks.  Smart people are out.  I doubt any rational person, especially a wealthy rational person would want to take investment advice from you.

Hard Facts

I think you need to reevaluate your study of history...

I remember the Mt.Gox debacle, it went from 1200 into 200.

You know whats 10k to 5k? 50%. Whats 1200 to 200? 84% loss.

Seriously, you people need to think in % and stop looking at the raw numbers. This is nothing in comparison to the previous years, Bitcoin is still fluctuating less than it used to, and you would be a fool to not take this chance to buy cheap bitcoins while you still can...

To make your brain work some more, this is the same as if the price went from $2 to $1. As long as trading is concerned it simply halved its price, not a big issue. Bitcoin is doing great during this crisis, and will emerge victorious as always when things recover.

Nothing escape from this collapse that currently happening, no experts can actually predicts the possible outcomes of this industry. The Corona virus is hurting everything.
Financial market are bleeding and you need to have an extra patience to keep your assets in the right position.

WRONG WRONG WRONG:  Peter Schiff has been predicting this collapse, and it is playing out EXACTLY as he has said it would.  Quantitative Easing, Intrest Rate to zero, massive stimulus, etc. etc.   And we know exactly what the good performing assets will be.

There is a way to predict, escape, and profit though this collapse, but it requires that you be smart enough to make good investments   :D :D :D

Hard Facts

@OP, that's right. Bitcoin will have been a good store of value in times like these but the situation right now is that people are afraid what would become of the miners who are also in places which have been hit severely by the virus and might even decide to shut down to be with their families. These are some of the things people are considering as they sell  of their bitcoins very cheap.

WRONG, WRONG, WRONG

You do not understand economics, and you do not even understand BitCoin.

As less BitCoins are being mined, the supply is slightly lower, which should make each bitcoin worth MORE.   You got it exactly backwards.

People are selling BitCoin because it is NOT, NOT, NOT a store of value, BitCoin is a BUBBLE, and has no limit to how far down it can crash.

Hard Facts

That's not a hard fact. If it were just a bubble it would have been zero when it popped but look right now its still $5k.  The panic seem to be this crazy but the guys who bought BTC while its less than $10 are just watching us scrambling. We all can see how BTC can bounce back and every time it does it breaks the ATH and that's HARD FACT we can always check the charts for it.

A number of nocoiner people around me have been asking about getting into Bitcoin lately. They must be dumb, mustn't they?

When everything goes to shit, Bitcoin is still censorship resistant, tamper-proof, resistant to legislative shutdown, decentralised, borderless, open-source, neutral, impartial, etc.  It still has all the same qualities that make it useful and valuable.  So when your bank closes its doors for a few weeks because none of the staff are allowed to leave their house, spot the difference.

Well you aren't alone, it always surprised me that people always forget that big drops like this happens and they don't learn every time to prepare on these situations that is why they are always at a loss. We always keep telling them that we always need to have exit strategies in place in order to avoid further losses and have the opportunity to short it yet they get blinded by their little gains that is why they hold it even further. Aside from holding Bitcoin at a loss they have now waster a good opportunity to gain some more money. Still this cycle where people are left unprepared will always continue as people will always be blinded by gains and never actually sell them until their expect and unbelievable target price is reached.

Yes, this is one of the BTC's worst declines on a single day, it was unthinkable beforehand, the decline would be this deep, even though it was predicted this would happen because all the stock markets and other economies had overtaken. For those who don't like crypto, especially BTC definitely uses this as proof that BTC is a bubble, manipulated, and other negative assumptions. Yet if examined further there are facts that are very contrary to that.
Strategies to deal with situations like this must always be prepared, either by short selling or by leaving the market if we are afraid of risk. In essence, even in the worst situations, there are still opportunities.

This is a unique situation in which many factors are combining: jobs being closed, possible limited access to banking and finances, and a massive pandemic, all simultaneously

Sure, this is what it was for, but it's still too early for it to be relied upon is such dire circumstances all happening at the same time

There is simply not enough cash behind it to support this level of panic and nearly immediate liquidity. If it were one of these at a time, I believe it would be less of an impact. However, this is almost unprecedented and extremely scary on both the public health and financial sides of this situation

UTTERLY STUPID and FACTUALLY WRONG STATEMENT...

Many Economic bubbles take months to or even longer to come to conclusion once they are popped...  Not all bubbles go to ZERO as you so wrongly state...   Did you just pull these " facts " out of your ass ?   I am sure many people will want financial advice from you after that expert analysis  ;D ;D ;D

EVERYTHING has changed in the last few weeks.   It is UTTERLY USELESS Trying to use past charts of BitCoin performance That has only been around in a huge growth bubble economy...  

WISE UP

I agree with you, btc was created to be cheap, fast and anonymous at some point, in overall it was created to get rid of 3rd parties during transaction between two person.
But as time goes, people's imaginary changed a little bit and among people it's like bitcoin should suit their needs. It will and even suits your needs but all of these depends on you. People panic a lot and there is no need of it, corona isn't that dangerous as they imagine in their thoughts. They buy weeks of products at once, that makes prices to rise because of high demand and low supply, they sit at home and doing nothing. This stops economics and affects everything. People don't save money in bitcoin like you think, no, they do worst opposite, exchange btc and buy products and sit at home. This is bad reality!

Bitcoin had grown to be the most profitable asset in the world over the last decade but had not gone through such a financial crises. The liquidity had shown other disadvantage with rate of cash out when there is no other source in the world in the past 2 weeks. It has the ability to climb its price back as well in fewer weeks when funds are provided, sadly most new holders 1-2 year are more involved in the dump than old investors.

Well $5k is no way near ZERO. Did you check the charts because to my knowledge the price still is uptrend because Bitcoin started with less than $1, that's also a fact.

I didn't claim to be a financial advisor though but I can assure you BTC is not going $10. You can hold your buy order at that price but there is no way you order can be picked by anyone who would sell at $10. That's not near zero too.

Not really at the first test, we've already done a lot of dumps in the previous and even reaching below $5k (were in the position right now). Some people deserted bitcoin but still a lot keeping it for they know that there is sunshine to come and this global pandemic issue will resolve. Either you ask them to hold and bet but you can't still hold them coz they'll never think that way at this time instead, they are much focused on how to survive from the crisis.

I agree both with your explanation and your attitude towards investing.

In a time of epidemic or any other real life problem people think about getting food and having cash because cash can be spent fast and is more reliable. Cryptocurrencies are a great store of value and a great investment but they are not made for a a time when the sky is faling.

What if you're moving out of town with your family, running out of fuel and there's one gas station nearby. You go there with your crypto wallet and they tell you that they have no Internet, the network is down and they only accept cash, no crypto and no cards. What now?

People will sell in a time like this but they will buy when things go back to normal.

I think majority of the market activities are not in anticipate of receiving cash in suitcases. Like selling stocks, gold and bitcoin

For stocks it is reasonable, people sell companies' share because in foreseeable future, those companies won't generate any return and their value will crash further, so better get rid of it and reinvest when the situation is more clear

But for selling gold and bitcoin, I have another theory, it is investors who want to get USD ready in order to hunt cheap assets when in market panic. Because every one know that helicopter money will arrive and everything's price will be pumped up later on, it is just a matter of time. You can not buy any other assets with gold and bitcoin today, so it is better prepare USD first

I've seen a number of posts over the years saying that once Wall Street and the like get involved, that's the time for "moon" and prices will supposedly skyrocket.  But I'm convinced that's fundamentally backwards.  My leading theory so far is that institutional investors treat Bitcoin like they do any other commodity.  They aren't looking at the important stuff (https://bitcointalk.org/index.php?topic=5215927.0), they're just reacting to market movements.  I'm not selling.  This crash doesn't faze me in the slightest.  I sincerely doubt anyone else who made a sensible post in the "Social Phenomenon" topic is selling either.  We're instinctive HODLers.  Therefore, it's undoubtedly speculators who are selling, because "follow the market".  

So the irony is, if fewer speculators were involved and more people cared about why Bitcoin is actually important, the price would likely be more stable.  

WRONG, WRONG, WRONG:

This is the FIRST TEST of BitCoin in a Financial Crash.   Every previous price dump of BitCoin was in a growing bubble econonmy, where the general trend of everything was up.

THIS IS THE CRASH, and the BitCoin as " DIGITAL GOLD " and a safe haven asset is a LIE.    BitCoin is going down faster than almost every other asset.

Only FOOLS try to compare crisis we are in now to the past good times  🙈🙈🙈🙈

Hard Facts

Exactly, I never excepted such movement too. Maybe it hasn't gotten to the level where people view it as a safe heaven.

Yes I agree with you. But the fixed supply of Bitcoin is supposed to give it an edge in this financial crisis. My humble opinion though

Institutional investors are the ones that keeps shorting and this is because those are the guys that believe so much of what is being said to them over and over that what is good for the banks are good for the government. Shorting every time there is a chance to earn money is all they care, they are not even into BTC accumulation but tether.

Nah, I don't think that was a reason for its creation. We know its existence something unknown but one thing I understand why it was created is just because to uplift the way we go into the next generation. We are already engaged in online scheme, that is how it functions but somehow it never catches attention to all and yet, it was just ignored by some.

May we could say that Bitcoin is meant to be helpful this time and show its function. But look at, people are selling it now or converted it into fiat currency. Still, Bitcoin isn't functioning and that thing can't imagine which supposedly its market demand tends to increase because people might be using it to buy stuff and other necessities.

I 100% agree with you that it is nothing less than a shock to see bitcoin performing like this.I actully googled many stuff to find out how a virtual financial world can be affected by something which is going in real world and the more i search,more i get confused.You can see in my previous posts also i had tried to find something but didn't satisfied.Soo i ssumed my theory could be one of the possibilities of bitcoin under performing.
I assumed that as crisis in fiat market was sudden and people were not prepare,they loss hell lot of money.That created the panic situation and people suddenly realized they are in need of money to full fill basic necessities and they pull out whatever saving or investment they had done and we all know that fiat market is people's primary podium for investment and VC's market is secondary.Soo people invest there savings in bitcoin market to do long.Soo the money was suddenly withdrawn living bitcoin market in crisis.

I just hope people remember this and maybe stop and think a little more carefully in future next time they start wishing for the whales to join the party.  The people who have a few mBTC are effectively plankton in this sea.  The whales have other concerns and are not here to save them.   :D 

The sole purpose of bitcoin was to be a currency and not an investment but with some factors and liquidation and volatility it became one of economic class. It was created to be used in online trading in a more modern society like what we have now, the vision of the creator of it is clear up to this point, what is unclear is the people who are using it.

With the global situation right now, bitcoin should be in use however people are crushing it by selling and dumping, but I guess their reason is acceptable the fact that we are in crisis now. I agree, bitcoin isn't functioning as what it should be doing during these times perhaps we are not seeing it yet.

Not at all, economically the entire stuff is down from oil to share market has completely shattered and the real concern could be this corona scare. BTC isn't like a gold or copper,  where the price rates plays some unique roles meanwhile there was been a strange crash in hash rate before the dump. We cannot blame the situation for the downfall also worry isn't a solution for this so let's move on and have faith in BTC .

Maybe what is happening right now is circumstantial. It was created to be a currency and a way for people to do transactions faster, the reason that it became an investment is that it became a sensation to investors in which they see a bright future.

Can happen but I don't think this way because every market has dropped these days When bitcoin goes down People sell more bitcoin and dump the price.corona scare is spreding in very high portion because of that may be people all arround the world does not transacting bitcoins. Cryptocurrencies are a great store of value and a great investment but they are not made for a a time when the everything is faling.

Bitcoin have been in this type of circumstances and every time market recovered so be patient and watch the game of bitcoin.

expect the unexpected mate,mostly what we are looking in market will be denied because of Bitcoin volatility and of course the effect of economic problem also seeing the whole world experiencing such problem?what can we expect for crypto when people here mostly weak handed ,only looking good when market Pumps but when dumping?all they do is withdrawing assets and then just leave and wait for re investing again this not helping the market instead they are the cause of much dumping.

Bitcoin user will have the same thing, back to bull run because bitcoin will meet halving event.

But in fact, we found this thing and at least in this situation I have been learning many thing.

I've known that I never know before, because privously many people said that bitcoin can be included as safe haven place beside gold.

But seem like it can be happened, just gold as safe haven place. And also, I'll say that bitcoin is like traditional market, as you can see know.

Anything might happen on a daily basis because Crypto Currencies like Bitcoin have a very volatile nature that it's valued could drop extremely low or could soar extremely high anytime and all of this events that are happening are normal within the crypto space. Being a safe haven when calamity strikes are not the qualities of Bitcoin because just like what I have said Crypto Currencies are very volatile.

Yes bitcoin is created for this and that is how Volatility works,things in our thoughts will not go along always
instead mostly the opposite so yeah this is it.actually we have seen many dumps and pumps like this for bitcoin.
some helps us but most fails us but in the end of the day?we are still here investing and keeping our currencies.
maybe what we should do now is like what you said,become Bullish for positive position.anyway we cannot do anything now but to wait.

Bitcoin was not created for such cases. It can be an anti-inflationary tool in the general global economic crisis, but not in such disasters. In similar situations, in the future, bitcoin can play a positive role in such situations only when it has a very high liquidity. Bitcoin would not fall in price now and would be a good refuge if it could be directly exchanged for goods and services. The negative role now was played by the fact that for the opportunity to buy basic necessities, people needed to put bitcoin up for sale on the exchange and this led to a drop in its price.

Bitcoin is formed for a quicker and fewer expensive exchanges, this is often my idea. On each day by day drops better believe it and that we are completely stunned thus, however we need to shut one's mouth and make certain . Bitcoin demonstrates to us that it's anything but an absolutely an area of refuge, this is often likewise a central issue on behalf of me yet I accept on the procedure of bitcoin and that i know it can happen again at some point . :)

Yes i think that bitcoin was created for crisis like this as the price is low now i still believe that bitcoin will rise. Lets see wait and watch what happens