Would cryptocurrencies benefit or suffer from a global financial crash ?

[Igor76200]

In case of a 2008 relapse or even worse, how do you expect this to impact the crypto market ?
This might be the most important question relatively to my current investment in Bitcoin and altcoins. And I am pretty unsure about the answer.

Please share your thoughts.

[JimmyButlerCollector]

Metals historically get hit around 30-40% and then take off a few months later. Bitcoin increases in market crashes, ie 2013 European Union crash

[dinofelis]

It depends whether speculators will see bitcoin as a "safe heaven" or as "volatile gambling asset".  Difficult to say.  If crypto will be the *cause* of the next crash, then obviously it will "suffer" in the same way that the housing bubble and the associated derivatives bubble caused the 2007 crisis, made housing and derivatives "suffer".  If crypto becomes the new big financial bubble that will cause the next crisis (I tend to think so), of course it will suffer.

Very often, the "safe heaven" of the previous financial crisis, becomes the cause of the next one.

[monsanto]

In case of a 2008 relapse or even worse, how do you expect this to impact the crypto market ?
This might be the most important question to me relatively to my current investment in Bitcoin and altcoins. And I am pretty unsure about the answer.

Please share your thoughts.

I think in general world chaos is good for crypto.  So if there is a major financial collapse involving traditional institutions I would expect the relative value of crypto to rise against traditional assets.

[Nagadota]

Cryptocurrencies are basically a wealth reserve in that they have a limited supply - the fact that they are easily accessible to people online and easier to secure than gold in the case of chaos means that they would dramatically benefit from a global financial crash.

Right now it's not very clear, because we haven't seen a significant wobble in the financial system since Bitcoin was created.  2008 might have been enough to have an effect, but it was too early for us to know.


Nothing is a safe haven forever of course - dinofelis is right to suggest that a safe haven can end up being a cause of a crash later, when it gets that far.  But we aren't at that point yet.

[Igor76200]

Some more opinions on this subject ??

[danjonbit]

I agree, nothing is safe if a global crash will happen, there is no safe haven on it, hopefully it will not come!

[freedomno1]

In case of a 2008 relapse or even worse, how do you expect this to impact the crypto market ?
This might be the most important question relatively to my current investment in Bitcoin and altcoins. And I am pretty unsure about the answer.

Please share your thoughts.

It would expand the demand for cryptocurrency assuming that their is contagion and no real safe market. In a world where countries are increasingly interdependent on one another the shift towards a non-weighted index such as Bitcoin which doesn't care what the market in X location does or Y location may attract investors in times of serious stock turmoil. Then we may see money move into it as people invest and take profits out of the stock market before it collapses. It does depend on the risk appetite of the investors though.

[Sameffkakkare]

I think it benefitted a lot... and this is just a start
Crypto yet to explode... all those who are saying crypto is in bubble.. they are wrong

[HabBear]

It depends on what creates the global financial crash.

Buying behavior is driven by psychology. If the global crash happened due to economic factors, a global recession, we likely wouldn't see a boost in Bitcoin demand. But if the global crash happened due to government negligence or global corporate corruption we probably would see a boost in Bitcoin demand.

The challenge is that people act after a recession has occurred, which means they've likely already suffered a loss of wealth and loss of the savings required to invest in anything.

We need one area of the world to suffer, have it be due to real or perceived government or corporate collusion which would lead to people in other parts of the world to seek Bitcoin to avoid suffering a similar hardship in their own country or region.

Just my 2 satoshi.

[Yuhee]

It depends on what creates the global financial crash.

Buying behavior is driven by psychology. If the global crash happened due to economic factors, a global recession, we likely wouldn't see a boost in Bitcoin demand. But if the global crash happened due to government negligence or global corporate corruption we probably would see a boost in Bitcoin demand.

The challenge is that people act after a recession has occurred, which means they've likely already suffered a loss of wealth and loss of the savings required to invest in anything.

We need one area of the world to suffer, have it be due to real or perceived government or corporate collusion which would lead to people in other parts of the world to seek Bitcoin to avoid suffering a similar hardship in their own country or region.

Just my 2 satoshi.

Well for whatever it is it would affect dollar and we know it dollar affects btc prices so when btc is affected, other crypto is affected.

[RoommateAgreement]

i say it depends on the situation of bitcoin and cryptocurrencies.
for example i don't think right now there are that many new people so happy to invest in bitcoin.
those who knew it before or find out about it in the past 2 months or those who want to use it as a currency will buy it but a newcommer won't because of all the drama.

but under normal circumstances, bitcoin has proven to be a solid investment. because of the demand, the limited supply, the security, and the privacy that it offers which can potentially mean no taxes too.

[Panda Trump]

This is a hard one. A global financial crash could definitely drop Bitcoin a lot, but it could just aswell be rocket fuel for Cryptocurrencies.

If normal currencies fall, it would ofcourse be worth it way more to store money in Cryptocurrencies. And if everyone wants to do that, it would mean a massive rise in the worth of Bitcoin.
As others have already stated, Bitcoin is hyperinflation proof, as there won't suddenly be 1 trillion bitcoins... They will stop growing at the digital trees at 21 million.

Therefore, I think that Cryptocurrencies could actually gain from a global financial crash. Truth is though: No one knows for sure.

Regards,
Trump

[Kakmakr]

Financial instability in Greece and other countries has previously pushed people to use Bitcoin and Gold and precious metals as a safe heaven to protect their wealth. I think the same will happen, when we have a global financial crisis again. Bitcoin is a quick option to move wealth around, even when there are political instability in your country and you need a way to cross the border without having to transport physical account details or assets. ^smile^  

[itsallpc]

In case of a 2008 relapse or even worse, how do you expect this to impact the crypto market ?
This might be the most important question relatively to my current investment in Bitcoin and altcoins. And I am pretty unsure about the answer.

Please share your thoughts.

At that time,bitcoin and crypto currencies were not available.So people started to invest in gold or other assets.But now,people have a good choice.If such crisis happens today,then it would boost investment in bitcoin and people would start buying bitcoins more.Bitcoin would become more famous.Indeed,it would become savior of investors at that time.