Bitcoin Forum

Sometime in the next few years the economy will crash (again).

The same mistakes made during the housing crisis are being made again - this time with so called 'bail out money'.

Is bitcoin likely to survive such a crash?

Will it fall in value and then rebound or will it go the way of the dinosaur?

Or will another cryptocurrency emerge from the ashes, a stronger, more viable (and stable) itiration?

Bitcoin wont survive because you need FIAT to buy bitcoin.

THats why price is now in a permanent down swing, its too reliant on fiat and the existing banks.

Without fiat, its not possible to have bitcoin because u need to buy it from something.

Now, people are inventing new decentralized currecies without FIAT, , eg. Ethereum, probably it will take the place of bitcoin.

That's been problem with bitcoin and why it cannot replace the banks.

Bitcoin was created and was successful because of the financial crash. IMO there is no question as to if bitcoin will survive the next financial crash as it will likely prosper when it happens.

Just look at when cypris has it's banking crisis, the price of bitcoin skyrocketed because of a pending potential financial crisis.

Not true.

You can trade goods and services for bitcoin as well.

No one said you HAVE to use dollars to buy them.

Sure, it will be a little hard to sell goods on bitstamp, but we'd just return to OTC trades for bitcoin.

nobody knows but:

http://money.cnn.com/2013/03/28/investing/bitcoin-cyprus/

Exactly. This is one example as to why bitcoin would prosper when the stability and soundness of banks is put into question. A financial crisis will generally have many bank failures and it will not be known if depositors' funds will be safe in a bank, however it is known that a person's bitcoin is safe inside their wallet as long as they keep it properly secured

This is my theory... as each the dollar and the euro collapses, people will rush to metals as well as Bitcoin. Because Bitcoin is such a small economy, the price will start skyrocketing. As it does, holders of Bitcoin will start purchasing assets for next to nothing - particularly real estate and businesses. BUT what this will do is get Bitcoin in the hands of everyday people... I think this will help lessen the blow of any total collapse and prevent society from deteriorating into complete chaos.

Basically no one knows since Bitcoin is so young that had not lived any big crisis. Next crisis will include China and will be really huge. Lets hope not so soon.

Yes ... and explosion of value with it.
And then, people can easly "donate" to his familly and friends his mBTC = 20 000 USD ... when he has olded a "few BTC".

That why early adopter of BTC is nothing to do with "normal rich familly" over the decade.

I think bitcoin will be favored by a crisis,as it is not controlled by any central institution,people will be trusting bitcoin to store its money,avoiding the collapse

think btc has good chances to survive and even increase in value, since fiat isn't worth the paper its printed on in a crisis

bitcoin or other decentralized currencies seem to be a good hedge against another economic crisis.

it offers a medium for exchange, which money ultimately is that can not be manipulated by messing with money supply.

also its not bound to the economic performance of a country which makes it more resistant to price swings caused by real economic development.

Are you serious? Bitcoin will be forever forgotten if crisis breaks the world.

Agree with the assessment here except the Ethereum part.

How is Ethereum different than any other cryptocoin and bitcoin?

If Bitcoin can establish itself and a side-economy is built upon it, it will have its chances, but it's far from saying it will survive a financial crash. It really depends on the magnitude of said crash anyway.

Well the past week or so hasn't exactly been a 'financial crash' however the world stock markets have declined pretty sharply in the past week or so, in the same time period the price of bitcoin has gone up by close to $100 or ~33%.

I think it is fair to say that bitcoin will generally go up in times of financial panic.

The financial crash will be a great opportunity to buy bitcoin. Ppl will realize the scarcity of it and see it as a alternative to preserve value.

oh. and what did the ether guys want for their ether ? bitcoin. thirtythousand shiny bitcoin.  ;)




edit: imho it is possible that the stability of the bitcoin network will lead investors to the conclusion it could serve as a safe haven.

At present, bitcoin won't survive in down economy until it is established.

I think bitcoin will be more valuable during a financial crash when the value of fiat is dropping. Some people will likely shift their fiat into bitcoins as the value of fiat drops.

If some businesses which accept bitcoin as payment, pay their employers with BTC, this issue will be solved.

In next 10 years I dont see Bitcoin less used as it is right now, unless something drastically happen to the blockchain.

Of course u don't need Fiat to buy btc, btc was designed as an ALTERNATIVE to Fiat, also if people are actually considering it an assett.

If economy crash a little btc go up. But, if economy crash significantly, I guess nobody will try to barter a slice of bread for btc.if u're thinking about such a crash, go for gold instead.

It will take much time that fiats will be substituted by bitcoin. Too soon to expect this.

The next financial crash may favor bitcoin imo (in terms of value and usage). Many people will cling on buying bitcoins and metals seeing that fiat couldn't be of any great use to them. Bitcoin will likely survive if more people use it and see its potential. However, as to what exactly will happen, we don't really know. Remember the recent PayPal thing? Most of us thought that the value will increase, but what happened was the opposite of it. :(

as cryptocurrency currency, bitcoin should not be affected by the financial collapse, but indirectly there is little influence on the bitcoin exchange rates against the American dollar, the more that use bitcoin as a means of trade and conversely the few who use the bitcoin bitcoin exchange rates will be smaller ...  8)

Deflationary correction will bring all assets down including bitcoin.

I think bitcoin will do very well if the economy tanks.

If we have another 07-09 time, then I'd guess BTC would be all time high.

after the markets crash central banks all over the world are going to print huge amounts of money to try and prop the markets back up, destroying their fiat currencies in the process.
the fiat titanic is heading for an iceberg and its too late to turn it around, get on the bitcoin lifeboat.

I see this as that lots will matter then this crisis start. If it wil start next year, will not be so much influence if it will start in 5 years time, may influence Bitcoin greatly.

Central banks are already doing it to prevent a market crash.  :)

In the next crash, physical gold and silver might not be available. If so, the flood into bitcoin will be larger than anybody could have imagined.

because? (rhetorical, i know you don't have a legit answer)

Mainly, it will depend on the level of inflation created by the crises. High inflation will pump bitcoin.

if it is more widely use, it might survive and benefit from a crash.

ethereum will take btc' place over my dead body (please dont kill me)(not literally)

It will survive.. But will the people survive the financial crash? Who will embrace bitcoin if people is fighting for their lives?

So you basically say FIAT was created at the big bang.

Bread will worth more then btc in a bad crash. So no...

BREADCOIN to be invented.... Every coin backed by an exquisite slice of bread shippable worldwide  ;D

PLUNGE PROTECTION TEAM !!!!!!!!!!!

the worst part is that that team exists...
http://en.wikipedia.org/wiki/Working_Group_on_Financial_Markets

teh question is not  "Will bitcoin survive the impending financial crash"


the question is:   "will the financial crash survive the impending bitcoin!?!"


 ;)

Fiat won't last long if it keep crashing every 3-4 years. Something is wrong is this system, i hope more an more people will realize that soon

I think bitcoin will still be able to survive at all costs, even if hit by the financial crisis, because of the type of bitcoin is cryptocurrency, the financial crisis had little influence on bitcoin, but will have little impact because it depends on the exchange rate of the dollar money market, hopefully the price of bitcoin but steady and in the future ...  ;D

But i don't think that modernity can be sustained by crashes happening each 3-4 years.  ::)

I am not sure what "crashes" you are referring to? If you are talking about economic recessions, then most countries are experiencing a recession every 8 to 9 years not 3 to 4, plus a recession is a normal part of the economic cycle. If you are talking about a stock market crash then this happens every 15 to 20 years but is also part of the economic cycle. If you are talking about large inflation then this has not happened is 40+ years, is very dangerous to the economy however it also very rare

Bitcoin is antifragile, it benefits from volatility. Read Taleb's book if you don't understand it.

Bitcoin will not only survive, it will be the tool to recover from any impending financial crash.

Hard to see this right now given big correction this year.

I feel like I gotta chip in, although I wish I had better study into Economics. Non the less, lets take it back exactly 1 year. Where was BTC? in a few more months it would be it's first time to pass $1,000 USD per BTC. ASICS were being made to a point that the market wanted more.. better. for less. So where'd that lead us? To ASICS that hash at half a terrahash/s for a few hundred. Not so long ago.. Cointerra, KNC, this guys and a few others ruled the market. As everyone knows, the price of BTC is linked to many variables. One being how many people use BTC, and so on. So what made this spike so huge? The influx of new miners, traders, and "holders". Among other things of course. But... I HAVE to point this out..

BTC is based on the internet. I fear that if a government's fiat is worth so little... How are we to pay the electricity companies? without electricity, how will IPS companies run.. And how will we have internet and power at home.. Without them.. Well, there goes BTC and it's price.

Now as far as silver and gold bugs out there. Well, a HUGE portion of gold is held by the U.S. in the Federal Reserve Bank of New York and Fort Knox... So. the problem goes back to fiat.. it's only worth what the government says.

So long as we have this type of government everything will be controlled. Think about it.. Most of the money in the world is just digits on a computer. Back in the 1920's maybe it was easy to have all the money as paper currency in circulation.. but now we're in the modern era.

But then the problem arises... With this "modern era" comes this beautiful thing called credit. So long as people keep borrowing money, they're in trouble. Notice how credit score's only take into account your credit cards, why not debit cards? Because they know people whom have credit are more likely to spend it, and in their minds think "i'll be able to pay this, and it will even help my credit score"... Funny huh? And honestly there's nothing we CAN do about our current system. Our president is a puppet controlled by the banks and powerful corporations, congress itself isn't much different, other than they can also be bribed making them much easier to control.. So long as this so called "Democracy" (which is ironic since america is a republic) dominates.. We're all stuck without a true voice.

Lemme give you an example before I shut up, if you live in New York, and you would like to speak to your congress man about any subject or matter, chances are they'll:
A. ignore you
B. send you a letter saying they'll think about it
C. Say they can't do anything because they're on the committee or something against it.

What do you do if you want to speak to a congressman that IS on your side, but is a representative of another state..?

Riddle me that..

Thanks for reading this rant though guys,

-T.O.

There isn't much point in the question. Bitcoin might not survive by causes totally unrelated to financial crashes. And there is no reason why a financial crash would kill bitcoin.

On the contrary, a financial crash might just be what is required for the bitcoin price to take off.  :)

You don't necesarily need fiat to get Bitcoin, I might give some one some eggs from my chickens in return for 0.001BTC

A crash will cause BTC price to rise as people become more and more desperate to protect their wealth. the time to buy is now.

I hope my government (UK) are looking at giving people the option to be paid in BTC. I'm sure that there are a few clever economists in our government looking at this right now.

If we can garner a smooth transition whereby people accept BTC voluntarily instead of FIAT then we have less chance of armageddon and our public services won't be compromised.

I don't want to live in a world without police, nurses, doctors, firemen or even bus services. That list is just off the top of my head.

I value my community and I hope the government see sense and allow a smooth transition to BTC if that's what the people want.

The trouble is, our corrupted government (not the only one) are loathe to tell us the truth about the disastrous state of the economy as they're all in cahoots with the bankers, who can go fuck themselves.

Hopefully an altruistic and honest change in government policy will allow decentralised currency to co-exist.

Things will change. They have to, or else we'll be living in deprivation.