Bitcoin Forum

Another thread shared a link to a Huffington Post article which shared predictions that a 2nd Financial Crisis, one that may be more serious and longer lasting than 2008, may be looming.

Certainly many supporters of Bitcoin may feel the same way.

If another financial crisis does appear on the horizon, how is everyone preparing?

It full disclosure, I'm not doing anything different than my typical saving and investing in the domestic and international securities markets. I'm not preparing for a crisis. In fact, I think the taper is what's keeping the crisis from happening...it's the methadone that's weening the US financial system off the addiction manipulating rates. Without the taper we'd be in crisis mode, with the taper the risk of crisis is controlled.

I'd love to get the education on preparation that I know the smart people of this community can provide.

Well, I have some precious metals (And I'm sure a decent amount of others do as well) as well as stocking up Bitcoin.

I'm avoiding stocks, since those would be the first to collapse, and probably also the hardest to fall.

I also have a garden set up, to supplement my food bill in case there is massive inflation later, and to supplement it now against all the inflation.

Other than that, nothing else. Living normally for a majority of it.

Visually inspection of cold wallets. Yep. All is well.

I would look for the weakest stocks to short to the floor. Crap like herbalife for instance.
Bear markets are just as profitable as bull markets if you are on the right side of the trade.

Society will just carry on. I'm not too worried about that.

If the real crisis strikes we should invest in real estate in a places like NYC, San Francisco Bay area, guns&ammo, 4x4 truck, silver coins/gold coins and 1 - 2 years food supply.

While I don't expect the answer to be popular, Bitcoin has no role in any preparations I would make.

What did you do in 2008?  Did it work out?  If it did then do the same thing.  If it didn't then do the opposite.

It all depends on how stable your job is.
I have seen people with stable, government jobs go about their daily life without a care in the world.  ;D

The financial crisis was very profitable to those who were able to wait out the turbulent markets and purchased assets cheaply.

In 2008 I was buying into the market as fast and as much as I could. I was also too early in my investing/disposable income life to feel as though I was losing much with the decline.

The people posting so far (and thanks for doing so) seem to only be referring to market declines. Paper losses I can handle, I'll buy into it.

Does anyone feel the next "crisis" may leave larger cracks to the foundation of the financial markets? If so, what prepare you doing for that potential worst case?

Another financial crisis eh?

The one in 2008 was rough but another may be far worse...

I'd say buy PMs and BTC, and be able to be semi-self-sufficient and have your paper at the ready. Watch prices, if they go up, buy non-perishable items to try and lessen food bills. And probably have a gun or two with decent amounts of ammo, as to protect your house.

Don't quote me on that, I'm not trying to give financial advice.

Diversifying away from the stock market
Oh and considering moving the traditional holdings to commodities since no matter the economy people need to eat.
(Known as the Kraft Dinner play although that stocks going up like heck)

For the rest Bitcoin

In 2008 I was buying into the market as fast and as much as I could. I was also too early in my investing/disposable income life to feel as though I was losing much with the decline.

The people posting so far (and thanks for doing so) seem to only be referring to market declines. Paper losses I can handle, I'll buy into it.

Does anyone feel the next "crisis" may leave larger cracks to the foundation of the financial markets? If so, what preparations are you doing for that potential worst case?

Ah that's good too would also buy into the market if I had longer durations knowing that the benefits outweigh the risks
Part of being a strong hand it can hurt though but most of the time it works out in the end (See FB stock)

If the next crisis leaves larger cracks it makes sense to own physical goods as they retain their value, this includes property you own and use the USA still has a lot of cheap houses that will make a large return over the next few decades, as people especially young people prefer to rent right now making it a buyers market.

Example Rentalstarter is a good example of this a real estate portfolio cemented in Bitcoin but with a fiat revenue stream.
https://bitcointalk.org/index.php?topic=215230.0
https://dl.dropboxusercontent.com/u/9427554/Public%20release%20for%20RentalStarter.pdf

(Of Course there are confiscation risks so bitcoin still wins lol) (USB key Multi sig and Portable/Convertible)

Reason why so many dislike government employees.

A financial collapse is all but assured.

None of the regulation that was reappealed by successive governments, culminating with Clinton and Bush, has been re-enacted.  The markets are more fragile than ever. Many '1st world' countries face bankruptcy.  The largest corporations don't pay any taxes. Unemployed will increase vastly as robots and automated terminals will replace more and more people. Banks effectively set financial rules and own government. Most countries have loans and debts that are impossible to pay.  Consumer borrowing is at all time high.  Funny money fiat is a joke, its made out of nothing -- the Federal Reserve even 'makes' 8% profit for every million bucks they print.  

I could even go on. In short, the ponzi scheme is going to collapse. There is no turning back because bankers call the shots now, and plans for more than a year in advance aren't made.

I'm preparing by investing in assets that will not be worthless, such as bitcoin and physical objects and real estate (hopefully).

Does it even make sense that the richest countries in the world face bankruptcy? Who has the money then? It's such a joke. The only reason why USD is worth as much as it does is because if a country shuns it, it gets invaded or the leaders assassinated by the CIA.  (I can give you the sources for this if you like, not just speaking out of my ass.) And every currency is pegged to the American dollar.  Which is created by a private company lending debt to itself in exchange for tax payer debt. It doesn't even make rational sense.

bitcoin is here to save us from this bank atrocious mistake, investing in bitcoin is the safest thing i think, even if may look wrong for some

Going to suggest a year supply of non-perishable food and water as well as tools to hunt and cook wild animals/fish if you don't live in the city.

Do you seriously think you will need that? Do you live in Zimbabwe or something?

Technology is far too advanced for Western countries to fall back to primitive societies. Any financial collapse will only be brief (2-3 years at most) and not much will change.

In the event of another big financial crisis, you might want to hold cash so that you can buy up assets and property a few years into the recession when the prices have plummeted. Holding precious metals and bitcoins is also a good bet but I still see the prices falling over the next year or so. My plan is to hold cash and buy more PMs and Bitcoins when the prices have corrected further. When the next downturn happens, I will wait for real estate prices to fall to then buy up some property at extremely discounted prices. Banks won't be lending out any money and there will very likely be increased capital controls on bank accounts and personal assets so holding hard cash is very important.

Only keeping cash and some bitcoin to buy up some cheap stock when it crash..

Not bad, I like how you think.

Just try to make sure that you buy BTC BEFORE the recession, as I have a VERY hard time believing the prices will drop from where they are. I'd also say the same for PM's. People could start buying up VERY quickly, and the price could skyrocket. Expect BTC and PMs to go up in a recession, don't expect them to go down. I can say with confidence that BTC will go up, since it is a secondary for of cash, and you can buy a lot of things that you can buy with fiat, often at a discounted price. You'd probably see a rise as opposed to anything.

But yes, holding cash or assets with you, such as PM's or BTC, or other alts that you think are going to survive, and hold them PHYSICALLY. Ideally, physically means on a computer or jump drive for coins, and physical gold/silver/platinum/thatothermetal for PM's, in case anyone needs clarification.

I figure I'm probably doing it wrong, but there are definitely people out there who are doing it more wrong than I am, so I won't be doing too badly at the end of it.

• Step 1:  Avoid getting into any debt where possible.  No overdrafts, no credit cards, no loans.  100% debt free.  Live within your means or live a life of servitude.
• Step 2:  Only work part time because there's no way in hell my fiat retirement fund is ever going to be worth anything, so may as well enjoy life while I'm young(ish).
• Step 3:  A small but respectable sum of bitcoin.  Hopefully more in future, finances permitting.  Only tiny amounts of alts because most of them will probably fall by the wayside.
• Step 4:  Time significant asset purchases carefully, although it's difficult to judge.  I need a house at some point, but expecting that market to undergo a correction soon.

Sadly buying a house would be in conflict with step 1, but a mortgage will be a necessary evil unless I get really lucky.  Beats renting, though.

I agree that this would be excessive to hold any significant amounts of food as the food supply would likely not be put into question. Also the government generally protects the food supply by guaranteeing loans to farmers and by buying excess food that is not sold to keep food prices from being too volatile.

Yes, I plan on buying more silver, gold and Bitcoins over the coming year before the next crisis hits the economy which I expect to happen in 1-2 years time. Only then will I use my cash reserves and possibly PMs to buy up property.

I actually still see the potential for Bitcoin to correct all the way down to $150 or lower. I know most people would find that laughable but I'm pretty confident that the corrective wave of the $2 to $1200 rise isn't complete. Time will tell.

Converting fiat to BTC at regular intervals will help average out the volatility. So you would be fine if bitcoin corrects (temporarily) to $2 or $2,000.

It's very hard to prepare if 2nd Financial Crisis is looming

But, i think this what will i do if that happen :
- Stock up rare items (Gold / BTC)
- Prepare some food / canned food  ???
- Not going to spend money on useless items
- Sold all my stocks (if i have some  ;D)
- But some very stable fiat
- But cheap stock when price down (if i have spare money to spend)
- Guard my valuable items from thief or hacker


I think invest BTC in Financial Crisis is a bit risky for me

Dollar cost averaging is not good for investments that go straight up, it is only good for investments that have peaks and troughs.

I'd rather wait for it to drop so that I can buy 4x more BTC than I would at current prices. In the meantime I'm investing a bit in Dogecoin which has corrected over 95% against bitcoin from its ATH. I'm not investing much in it though since it's a lot riskier, but the potential ROI is huge which will allow me to stock up some more BTC and PMs when they bottom.

The history of bitcoin is replete with crashes, although the long term direction seems to be up.

https://bitcointalk.org/index.php?topic=704518

The Buffett Indicator, nice add!

Quick summary for those that don't know, Warren Buffett uses a metric of the percentage of total stock market capitalization to quarterly US GDP as a measure of stock market valuation. I.e., Stock Market Cap / Quarterly GDP = The Buffett Indicator %

Currently the Buffett Indicator hovers at around 125%, prior to the crash in 2000 it was just above 150%.

The only problem I have with this chart is that over the very long term the trend is up...higher highs and higher lows. Put another way, in 1996 the Buffett Indicator surpassed the previous high mark (in 1966). This would indicate a looming crash, however the crash didn't come for another 4 years. Buffett is a smart guy however it's still hard to base future results on past performance, the market isn't that predictive (as much as people try to do so over and over again.)

This is a great reason to keep an eye on the economy and the markets though...

This is also true for other investments however many investments have also fared far better by simply buying a lot and holding for some period instead of buying a little bit at a time.

Lucius Septimus chews his twice-cooked bread at the entrance of his hide tent, having cleaned his iron weaponry and his armour. Out there, in the rain, the grey choppy sea that beats against the northern limit of Gaul is an uninviting sight. The wild Britons of the lands to the north have been a thorough nuisance, giving constant aid to rebellious Gauls and holding up the establishment of Roman civilization in these northern lands.
Also, it is said that there is great mineral wealth to be had there. Stories abound of wealthy metal merchants making their fortunes by plying these dangerous waters.
Certainly the military victory achieved there by the late Julius Caesar was small; but the talk is that other invasions are planned. He certainly hopes not. He would rather be serving in newly-annexed Aegyptus at the other end of the empire.
Only the generals and the officers in the big tent at the end of the row know what the long-term plans of the new emperor Augustus are. Lucius merely goes where he is told, and fights where he is told. He feels lucky to be a part of the great nation of Rome: a nation that controls practically the whole world and will do so for ever.

IMO investing in dogecoin is basically the same as "investing" in lottery tickets.

Research what happen during Katrina, Argentina defaulting and after Zimbabwe currency collapsed and after Israel neighbors invasion.


It is always better to be prepared than be sorry even if worst case scenario do not come true.