Is Bitcoin going to be the best hedge in the upcoming financial crisis?

[wuvdoll]

Financial crisis is here and bitcoin has not skyroceted yet. American stocks are incredibly low, they have fallen as much as they did back in 2008 according to another topic here and that means the crisis already begun and no increase sight in scene. Yes, bitcoin went from 3 thousands to over 4 thousand but it went back to 3 thousands once again and even the 4 thousand wasn't really a big increase. The price needs to be at least over 6 thousand once again in order for us to say "recover" let alone anything remotely near the 20 thousand dollar line.

Hence, I doubt the financial crisis will have any affects on bitcoin at all for now, maybe in the future when FED keeps the strict investment rules there will be some rich folk preferring bitcoin over stocks and savings because of bad returns on them but that would take years to have any affect on the price and would be gradual and not instant results.

[figmentofmyass]

Financial crisis is here and bitcoin has not skyroceted yet. American stocks are incredibly low, they have fallen as much as they did back in 2008

not even close! in the 2008 crash, the s&p 500 index fell ~56%. the current drop (from the ATH earlier in the year) only amounts to a 17% decline. it's been a rough few months, but nothing compared to 2008 yet.

Hence, I doubt the financial crisis will have any affects on bitcoin at all for now, maybe in the future when FED keeps the strict investment rules there will be some rich folk preferring bitcoin over stocks and savings because of bad returns on them but that would take years to have any affect on the price and would be gradual and not instant results.

i don't see any signs of financial crisis. the stock market looks like we shouldn't expect a new ATH for a few years, but i'm not convinced that this represents a crisis or collapse like many people think.

[arpon11]

Bitcoin maybe used as hedge during financial crisis as most of the currencies especially the major one can be sweep during the crisis.  Bitcoin did not much depends on inflation figure and others financial issues and that put it in the best position to become investments window during financial crisis.  Remember that bitcoin is transparent, decentralised and it is highly reliable. 

[Febo]

Financial crisis is here and bitcoin has not skyroceted yet. American stocks are incredibly low, they have fallen as much as they did back in 2008

not even close! in the 2008 crash, the s&p 500 index fell ~56%. the current drop (from the ATH earlier in the year) only amounts to a 17% decline. it's been a rough few months, but nothing compared to 2008 yet.

Yup. I dont get how so many already call we have economic crysis.

It has to happen and so far I hoped it would happen after next Bitcoin bubble. But right now I dont care anymore. All that economic crisis will do is to postpond the Bitcoin cycle for a year and after that bull market will be only stronger.

[Yamifoud]

Bitcoin will regain its market value when people and investors will put back their money. It actually bitcoin never be a solution for the possible crisis and we can't depend on bitcoin cause once financial crisis arrive it also affect into its market value(going down also).

[1Referee]

All that economic crisis will do is to postpond the Bitcoin cycle for a year and after that bull market will be only stronger.

It's impossible to know. It could steer this market to record highs, or have it suffer with it, but one thing is sure, continue to buy whenever you can now the prices look reasonably fair. Regardless of the economical circumstances we'll be going through, Bitcoin itself will only become stronger.

The coming few years will be Bitcoin's best years in terms of technological progress. We have some killer upgrades waiting to be released and Lightning continues to grow as well. I'm more bullish on Bitcoin than ever before. Eventually, the price will move far ahead of the actual utility in form of the next bull run. It's only a matter of time.

The only thing you can do is make sure you hold enough coins before it starts. Buy.

[magneto]

Hi Everyone,

There has been something on my mind for last couple of weeks and that is:

Is Bitcoin going to be the best hedge in the upcoming financial crisis?

Let's assume for a while that the financial crisis will break wide open in either late 2019 or at latest early 2020 - we live in everything bubble era.

What do you believe will be the ultimate hedge and why do you think that?

In 2008 crisis it was US treasuries and gold as it rose sharply in 2009, 2010 up to 2011 I don't think that would be the case this time as the mobility matters more and more.
I can't speak for US treasuries as I don't understand them that much let alone understand why would anyone invest in anything that does not even cover (real) inflation which in my opinion is about 7 - 10 % per year depending on where you live and things you buy.

In my opinion it will be Bitcoin (BTC) as it's the oldest, largest crypto with the largest hashing power behind it.

I would appreciate your comments and opinions.

Edit 17/12/2018: As some people thought I'm looking for an instrument that will not take ANY loss - that's not the case here - I'm looking at an instrument that will not stay down for say longer than 3 months.

Edit 19/12/2018: This assumption/planning/thought is for rich people - people who can barely afford food and just got laid off will not invest in anything (maybe lottery tickets if they want to call it investing).

I wouldn't say that bitcoin is guaranteed to not stay down for more than 3 months.

However, if you look at it from the perspective of whether people would want to be in an asset class which is decentralised and people know is a good store of value and isn't manipulated by any central entities, or rather assets that have ties to the traditional economy within a financial crisis, I think that most people would want to hold the former.

It's the reason why precious metals have performed well in times of financial crises around the world. Bitcoin can serve a similar role here.

Is it going to be the best hedge? It's hard to say, but it will be a hedge against any upcoming financial crisis in my opinion. It's certainly going to be comfortably outperforming assets like shares, or potentially even fiat cash itself.