Bitcoin Forum

Can Bitcoin be a good investment over stocks in a recession period ? Also, explain why do you feel so ?

If you look at past data, you will easily get the answer to the question relative to your country because recession is rarely universal else it becomes global economic meltdown like we had in 2008 when bitcoin was not yet created. As for country specific recession, bitcoin is definitely a good alternative because whenever currencies fails, people look towards other assets of which bitcoin has proven to be one of such reliable asset. I remember in 2020 during the coronavirus pandemic, a lot of people invested in bitcoin and towards the end of the year, the price moon when stocks were crashing.

I like bitcoin because you can hold it and have complete control over your coins, unlike stocks that you do not have complete control over.

Stocks are many. There are some that are very volatile like gambling just like altcoins are very volatile. Bitcoin is less volatile. So if you want to compare both, you can mention the stock that you want to compare bitcoin with. But as for me in general, I will prefer bitcoin.

I still dont get why people think stocks is like gambling while bitcoin is not. Both are equally volatile and have their own set of risks with overlap. Does not make either of them good or bad, they have their own unique profile.

In the time of recession, the costs of goods may drop and income may also reduce unless you are working in some specific sectors. You might not have money at hand to be able to continue to investing-rich lifestyle instead have to come to minimalist lifestyle to choose the needs over luxuries and by all means investing is a luxury that comes after needs.

So if you are already invested in bitcoin before a recession hits, then it makes sense.

Our choice of investment should be based on what we believe. If you are the type who has so much faith in the stock market and is too lazy to handle your security by yourself, then the stock market will be the best option for you.
 
But if we are to go with privacy and self-custody, then bitcoin is the best option for me. You have to be the one to decide what you really want and where you want to invest your money.

Each type of investment has its own risk, and you need to weigh them based on what your purpose or investment is and choose the one that will be best suited for that investment purpose.

Bitcoin is better than other investments during any economic period because of its greater volatility as well as its ability to increase in price. But how much profit you can make from it depends entirely on your abilities, not decided by bitcoin.
Bitcoin is better and has more potential, that doesn't mean you don't need knowledge and experience to rush into investing blindly and expect big profits. Financial markets don't work like that. It doesn't matter which market it is and profits will come from your knowledge, and not the market's decisions.

If you have no knowledge, no experience but want to get rich quickly and think that just investing in bitcoin without doing anything else will achieve what you want. Then you will even lose everything, let alone how much profit you earn. Meanwhile, stock investors with knowledge and experience...will make more profits than you.

It would have been a good thing to look at had Bitcoin been in existence before the beginning of the Great recession in 2007. But in general, Bitcoin has performed quite well compared to most if not all stocks from the time of its inception

Let's not forget that back then, the price of Bitcoin was in cents. Today, I don't think we shall see yearly moves of 2,000%, like it was possible back then. So If a recession were to happen today, things may not be the same as they were 15 years ago.

It depends on the kind of stocks you are investing in. There are stocks that do well even in a time of recession. For example if a country is involved in fighting war despite the having a recession in it's country, individuals who invest in a company that produces ammunitions and other war stuffs will witness a rise in their investment even though the country is in a recession. Aside this, yes Bitcoin is my go to asset for investment during a recession or any economic downfall. It saves and preserves my wealth.

In my opinion, bitcoin is better and that is why we are here and choose bitcoin.


Of course, we choose bitcoin because of its profits, bitcoin clearly brings significant profits and outperforms other investments, not just stocks. But apart from the profit factor, bitcoin is far superior as it is not just an investment but also provides us with use cases. With bitcoin, you can manage and store your assets yourself without depending on third parties, you can use it as currency, cross-border payment method...The stock market does not provide you with these facilities other than using them for investing.

I agree that stocks easily get affected by recession because during a recession company can easily get impacted with losses that’s why you see things like companies reducing staffs and so. Having stocks here can cause panic and many people can start reducing their investment holdings leading to bearish periods for the stock, that’s why the recession effect is dependent on the type of stock you invest in.

Bitcoin on the other hand doesn’t have a central body and a country recession doesn’t affects it directly, but a global recession too will definitely affect the trend of bitcoin. During recession people are bent in to reducing their costs and more often volatile assets are the ones they do away with. A strong supply power as we know leads to fall in place

BTC has been a good investment op, and whenever you make BTC your choice among other cryptocurrencies in the market, I guess it will allow you to accumulate profits that will make you to begin to see BTC as the king among other cryptocurrencies, which is what BTC is right now in the industry.


If you have not stock your BTC for long period of years before, I will advise you to try it to hodl your BTC like 4 or 5 years before you can sell, you will agree with me that BTC investment is a good investment to put money in the bear run.

I know you have seen other projects that is making you feel like BTC investment is not the best,  just try the investment with what you can afford to lose, then you will believe BTC investment is the best.

I've been buying Bitcoin and not into stocks despite that many of my friends have been encouraging me to buy those. I've chosen to buy Bitcoin instead of it and that's why this is what I have and don't have stocks at all. But I don't know during the recession period. We're all believing that this is the hedge against inflation and it's been made during the 2008 crisis.

It's able to survive during the pandemic and Ukraine-Russian war. So what's more to ask about it? Maybe the worst hasn't come yet but I believe that even on the toughest period of time that the entire world is going to go through with such recession, Bitcoin will survive no matter what happens. It's designed to survive it although it's been made as a peer to peer cryptocurrency but then its attributes have changed and became one of the best assets on this century.

Bitcoin is proven resilient in times of global economic crisis and inflation while stock market plummets since companies is the number one affected for recession period. Bitcoin  is independent assets that doesn’t rely on the global economy/fiat.

Also based on the Bitcoin price history. Bitcoin price is only moving upwards every cycle despite there’s a correction occur. So this kind of assets is the best asset to invest in dire situation since you have an assurance that it will come back again no matter how hard down due to the recession.

Not all stocks are the same though. Some stocks go down during a recession but not all. Defensive stocks are usually the stars of a recession period. It is because people will always have to use toothpaste, toilet paper, medicine etc… It is hard to beat these stocks during a recession.

Btc on the other hand usually acts like a leveraged nasdaq index fund and the Nasdaq stocks are mostly tech stocks. Tech stocks don’t do well in a recession so I think Bitcoin won’t be an exception.

In a recession I would go with the defensive stocks. P&G, Walmart, BAT, CVS, Costco, MCD, PEP are very popular and rock solid choices.

Well, that's in theory and it happened more in the beginning. Nowadays it is more and more related to the financial markets and its behavior is directly related to the liquidity in the market.


This also happens with shares. Look at what happened in 2020, as discussed above. Both Bitcoin and stocks fell, only to end up recovering and surpassing highs in a short time. The difference is that Bitcoin is more volatile. It falls harder but recovers faster and rises higher.

Where you will be comfortable doing that is what you do, because we also have different strategies when it comes to investments here in the crypto space, or bitcoin. It is also difficult for us to rely on the answers of others to the question that we are looking for an answer to.

It's even better because we ourselves do the actual research on such things. Now,  if you really want to secure a profit, just hold bitcoin in the long term, and you will definitely get a profit this bull run, as long as you wait.

Check this graph.

https://imgvb.com/images/2024/06/22/4a48c01b3e35ba7a8af8d382a3442aef.png

Actually both of Bitcoin and S&P 500 have some correlation, when BTC dump, stock dump too. When BTC pump, stock pump too. It just Bitcoin has higher volatility than stock, so don't sell it whenever you're not need in hurry.

I think Bitcoin isn't yet a safe thing to hold during crisis because during Covid pandemic, Bitcoin price once dump to $3K~ at that time.

Bitcoin still the best investment for me and that works perfectly so far. I don't invest in stocks in a recession period because Bitcoin is enough for me besides of gold. I don't understand much about stocks and Bitcoin is more easier for me to understand and I don't have to know for very very details about Bitcoin.

People just needs to learn about how to keeps Bitcoin with right so they will not feels worry with the scammers. But people must understand that Bitcoin is not a rich-quick scheme that will gives them a big profit in a short time. They must wait for some term, usually four years to see the price increases.

But if you still wants to use stock instead Bitcoin, that will be no problem because we have our own choice. We choose Bitcoin because we already see how Bitcoin perform so far. Bitcoin is not disappointed us and even gives us a big profit if we can holds it for some time.

Although it is hard to say but I doubt it.

The thing about recession is that unlike inflation (that would shoot bitcoin price up) it forces people to liquidate their assets and they always start from the riskiest assets which bitcoin can be called that. So the sell pressure caused by the recession like this could lead to drops and even crashes depending on the severity of the recession and the panic sell!

In fact I've been saying that the only reason why we haven't seen a bull run that looks like previous bull runs in the past 2 years is the ongoing and worsening recession in most of the world.

I believe Bitcoin is way more volatile than stocks.  The only reason many believe that Bitcoin is good for investment in a recession period is because they believe it is a hedge against inflation other than that I can't hear any more reason why Bitcoin is good to invest in during those times.  Aside from that during a recession most stocks fall and Bitcoin does not follow suit with traditional stocks so, it can be said that the price of Bitcoin is independent which may increase in value while the stock value collapse.  Although this has not been proven yet many believe in this case due to how the Bitcoin market behaves.

I have bad experience with my local stock investment how easily manage by the developer with the price decreasing drastically, learned how bad viewed of stack not interested yet for investing my money with stock and more interested for investing in bitcoin because price increasing or decreasing not depend on the whales or some community.
Stock get difficulty for raising up such as bitcoin or cryptocurrency investment how easily raise up without waiting longer time, but many people against for investing in bitcoin and recommended stock as the best place for investment because has underlying when investing in stock we can see their project.

That is because BTC is decentralized and I think that is possible because of the technology that it is using which is called as the Blockchain. Stocks on the other hand were centralized and that is the reason on why you can't have a full control over them. You think stocks are many but what about the cryptos?

I think they are much more than them because it is only easy to create a crypto. I think stocks are still less volatile than cryptos but yeah, that any investment is still a gamble. I have zero knowledge about stocks, so like you, I will also go with BTC because I know that this is the best crypto. By best, it is not only doing well as an asset but also as a currency.

Recession doesn't mean an economy may suffer inflation, I don't understand why you think investment in Bitcoin during that time will be okay over the stock as during that time, job opportunities and low demand in goods and services are what suffered the most in this period, so what are you really saying. Just know that either in good economy condition or bad economy condition, you can invest in Bitcoin anytime without stress and if the market is good, you will make a return on your investment.

You should know that Bitcoin doesn't really care about the intrusive situations of the economy, only traders speculate about what happened to economy with Bitcoin on the micro level but when you look at the bigger level, Bitcoin runs in bull and bear market. If you buy Bitcoin in the bear market, there is no guarantee but you will make something in bull market, even though it's going to be 100% of what you bought your Bitcoin, bull run must give something back.

I believe it depends on how much a person understands each market. Traditional markets such as stocks or forex are different than the cryptocurrency market, so a person leaving a traditional market and entering the cryptocurrency market might have difficulties.

One might think that all financial markets might work on the same strategy, etc., but that isn't right. If you are moving from one market to another, you will have to start from scratch knowledge-wise, which means that you will need to understand the market first, then understand the essential practices, and then create your trading strategy that would work according to your capital and investment method.

So, even if it could be a good investment, it won't be easy for everyone to do that.

I will just say you created this just for the sake of argument because bitcoin and stock investment are two different things, even though both have investment at the end. I know you will be confused because you view them as investments, but if you take your time and go deep into stock investment, you will find out that this deals with different challenges like expenditure, partnership, consumers, earnings, and most especially the interest rate. All these are factors that can affect this stock investment, and they contribute a lot to this investment because the stock price might increase the low demand for the stock on the market, which will decrease its income. 
 
Let's talk about bitcoin. Although many know that bitcoin is a decentralised crypto currency that deals with demand and supply, while many believe that it is a saviour in times of inflation, which some view as achieving, bitcoin is like everything in this life. 
 
So with this, let me ask you if bitcoin and stock investments are the same? If no, then why create the question? 

Bitcoin has a higher recovering speed than stock, Stock, and Bitcoin can fall during a recession but when that recession is over, Bitcoin will be the quickest to recover its lost value and might get to a new ATH while the stock is still struggling. Bitcoin is a good investment over stock in all market conditions. Bitcoin has a fixed supply and has a different market audience that believe in Bitcoin and sees every decrease as a blessing in disguise. Bitcoin isn't controlled like how the stock market is being controlled with the help from the media. The stories they want you to hear is what they push out and this causes market movement to go in accordance with what the media are projecting.

The performance of a stock can be affected by what happens after the recession because of the sector that the company is a part of, goes out of business (get overthrown by a new developing sector that looks more appealing to investors), making them to focus more attention on the new section and making yours (where you invested) to be dormant. Investing in stocks during recession isn't a good moves because the market can lose value while you're already invested but investing in Bitcoin at anytime is always the right more.

It depends on how bad the recession is. If it's so hard that the majority is forced to liquidate assets to get along everyday, then Bitcoin is no different and a lot of people would have to decide to sell it. That's a double-edged sword and hard to tell where flipping points might be, but as I said, if the world's economy is under severe pressure, people are losing jobs, are not able to pay their debt for their houses, how would Bitcoin be a solution for those people? It would rather be the rich who'd benefit then.

Recession is a decline in economic activity right? And I don't think that bitcoin price is going to ever be dependent on that kind of situation so I'd say that yes, it's possible that bitcoin can be a good hedge against times of recession but it's still dependent on what price bitcoin is right when the recession is happening, if it's in a situation where the price is so high that a price correction is imminent, it's probably not a good idea to put in a lot of your money in it lest you want to experience panic mode when the correction happens and you see your bitcoin value starts to plummet but otherwise, you're probably going to be really fine with using bitcoin as a hedge but you still need to be careful about things because you're never going to know what will happen next so invest with caution when the times where money is tight and you need to budget everything.

For me, I’d say that rather than choosing just one, you can diversify your funds into both of them because they both have their strengths. They have pros and cons. Bitcoin has a fixed total supply but it quite volatile. Stocks can give you consistent dividend payouts but dividend cuts can happen. There’s so many things to compare and like I said, they are both unique so spread your assets. What could go wrong if you’re on the fence?


Is it?

Recession in my opinion is global in an area, and if someone has enough money and wants to make a profit from an investment, it is normal as long as they still hold money. because if it is held all and used for consumption for a long time, of course there is no return and it is not felt. Investment is a solution if oneself cannot resist the temptation in conditions that are secondary needs, but if the condition is money for daily expenses it is better to use it as wisely as possible, the nature of a good investment is money that is not touched daily because investment is not every day in bullish / profit rallies in any sector. I agree that bitcoin is the best crypto in history and I chose it because of the convenience I get including storing and using it anytime without interference from others. The history of the arrival of bitcoin even I think when the economy of some regions / countries is not okay, bitcoin is a complement in the world of investment in the digitalisation era, a good pioneer.

During a recession period, both stocks and bitcoin can be affected especially bitcoin with its volatility.

Usually if stocks is crashing, there is something going on either politically or economically speaking. Most investors might seek a safe haven in the form of bitcoin so I think bitcoin is a better asset to hold compared to stocks. It is also much easier to buy or sell if need be as you are the one holding it yourself unlike stocks with a broker.

First, I would say that it depends on the kind of asset that an individual is more familiar with and understands the mechanism so well. Don't invest because someone is investing there or someone has convinced you to invest like he or she is doing. Investments should be made based on different factors, such as the knowledge you have about that asset, the profit it can generate over a short or long period of time, the volatility level of the asset, and also the ability and quickness of the asset to surge in price after a market fall due to economic crises or whatever that can cause the price of the asset to fall. 

Let me go back to your question: during the recession period, what happens? I believe we all know. If the financial market plunges and affects stocks, I also believe it will definitely have an effect on the price of Bitcoin. During this period, if the price of both assets (Bitcoin and stock) plunges, which do you think can have a quick recovery, and which of them do you also think will have more resistance to market crashes? From my observation, I feel Bitcoin will have a quicker price recovery than stock, so I would rather invest in Bitcoin. 

I will choose Bitcoin over stock. you know why? It's quite easy for someone to know or have in mind that within a space of time, if they invest in bitcoin during the bear market, they can stand a chance to be at profits during the bull market. For stock, it's hard for someone they know the right time to invest or know when they will succeed in their stock investment

Bitcoin tends to correlate with the stock market over the last few years. So I think that in an event of a US stock market crash, Bitcoin will follow suit. However, as Bitcoin is usually not related to factors affecting the stock market, Bitcoin might recover faster. It may not happen, it's impossible to predict. So I wouldn't bet on it, but there's a certain potential there.

Yes if it is with recession period however, I doubt it won't be affected as well. People won't instantly shift to blockchain industry just because there is a decrease with consumer demand; it doesn't work that way. First of all, ceyptocurrencies are not yet widely accepted as ideal. If there won't be a demand on its usage then there will still be no positive and significant. Even turn deposits on banks would generate less income in such period and it might as well be reflected to this industry. However, everything will only be determined once this thing already happens. We can only assume at this point based on previous stock market events we saw from our past.
It is not directly related but may still be affected. In recession, would people still have the financial freedom to invest given that an economic problem is happening? I doubt they would. Daily necessities would be prioritized, most likely.

I think because bitcoin is not fiat, it has volatility and fluctuating waves means it can appreciate in value than initial value because recession has a huge negative impact on fiat as the economy becomes dull with low demand nor supply which also depreciate the value of fiat. So having btc may be a hedge on fiat. In the case correction of bitcoin price, then the value also increases and during bull, it can rise astronomically causing the hodler to have more value in exchange for fiat.

Stocks are good investments as it creates dividend income and higher returns, but I believe bitcoin is highly more profitable and secured than stocks. And just like you’ve said, bitcoin has already survived the most worst world scenarios way back, so I think there’s no more reason to doubt the high potentials of bitcoin.

However, if you can invest both stocks and bitcoin during a recession, I think the more sustainable the profits will be. Stocks offer higher liquidity, but we all know bitcoin is more capable than that as long as we never stops taking advantage with bitcoin especially if there are huge opportunities in the market.

Bitcoin is a good asset to invest in during a high recession. This is because when there is a recession it hardly affects the price of Bitcoin just the way other assets affect Bitcoin but if it is in the stock market, the commodities, service,s or goods can be affected by a recession and it might affect it negatively or positively. Most times it is affected negatively. So far a period of recession i would prefer to invest in Bitcoin rather than investing in the stock exchange. Bitcoin can store value in this period better than stock.

It depends of how long do you plan to HODL the Bitcoins.
If a recession starts and the cryptocurrency prices drop, will you panic sell or will you HODL? If you panic sell, then no, Bitcoin isn't a good investment for you. If you HODL, the markets will recover and Bitcoin will start another bull run, so your investment will pay off.
I don't know why do you have to compare Bitcoin to stocks in general. Some stocks are way better than others. NVIDIA stocks are great, as long as the demand for NVIDIA micro-chips is growing. Tesla stocks were overpriced and they will most likely keep dropping in value.

Except it's a global recession, bitcoin would be a better investment than stock. Bitcoin is not based in a particular country or country so the recession of one country won't crumble the price of Bitcoin. On the other hand, stocks are shares of companies and these companies are based in a country, so if that country goes into a recession, the company suffers thereby causing the value of their shares to drop because they won't be able to make much profit.
So if there is a recession in your country, in my opinion, bitcoin is the better investment.

Both stock and bitcoin are very volatile, but I don't believe it's fitting to compare stocks of all the companies to bitcoin alone. That's like comparing the whole cryptocurrencies to the stock of a company whose stocks are performing well.

This is not true in my country. Stock market was completely crashed during lockdown but crypto was not affected by same effect during that period. Currently, stock market is on peak but bitcoin has been stagnant over last 2-3 months.

I think that's also true during a global recession, like what we're experiencing now. After bitcoin was severely dumped in 2022 when we were at the height of the economic downturn, and it has recovered and grown better than any stock in the world to date. If someone had faith in bitcoin and had bought it when it was $15k-$17k, they would now be making almost 4x profits, which no other stock can do. So, in my opinion, bitcoin is always an investment that brings better returns than stocks in all economic situations, not just recessions.
Inflation is showing signs of going down and we are waiting for the Fed to lower interest rates and the world economy to enter a new growth phase, and I believe bitcoin will also grow better than stocks in the near future.

Yeah, true. During this recent pandemic, we can see how the economies of different countries have gone down, and many businesses have been affected. So many have also closed their businesses. This time also, we can see how powerful bitcoin investment is because there are just slight changes or effects to bitcoin and other crypto currencies. While stock markets were not in a good state at that time, well, that's a given because we are in a pandemic, so there has been no movement in the economy, and businesses are closed in the meantime. That's why I proved that bitcoin is a good choice if you want an investment that is risky. Yes, but part of that is that without taking risks, you are not good enough to handle bitcoin. Stock markets are still a thing right now, but for me, bitcoin is the best choice, and crypto currency as a whole will be a good thing to explore and invest in.