Financial collapse means Bitcoin boom?

[Snorek]

The oldest truth in the book - when a traditional economy is in peril, alternatives thrive. With Bitcoin it is exactly the same, the harder FIAT will fell the higher bitcoin will soar.
Just wait when Wall Steet or debt based western economy will collapse it will create turmoil so big that bitcoin might touch the sky.
The only question is - we have no idea when and where the crisis will start - but one is certain - sooner or later it will hit us. Stay tuned.

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[richardsNY]

The only question is - we have no idea when and where the crisis will start - but one is certain - sooner or later it will hit us. Stay tuned.

People shouldn't focus on when the 'looming' crisis will start, they just need to make sure that they have a decent portion of their wealth sitting in Bitcoin to not experience the negative consequences of a crisis. People don't yet realize it, but Bitcoin is the perfect safe haven asset with an insane level of potential growth. I had the luck to enter this market at $200'ish levels, but it by far isn't too late to enter this market -- just make sure you do it. The longer you wait, the less Bitcoin you'll get for your in value decreasing fiat.

[illyiller]

BTC's supply is to imitate precious metal, so as all precious metals, one of its function is safe heaven. So I will not be surprised to see people getting BTC when the local currency doesn't work well.

This may be true in the case of smaller economies like Venezuela (and I'm not sure we have the full story there, either), but I believe the opposite may hold true for major economies like the US.

For Venezuela, the US dollar is also in demand as a safe haven. Even World of Warcraft gold could be seen as a safe haven vs. the Venezuelan Bolivar. So of course cryptocurrencies are seen as a place to store value, since their value is rising.

If the US markets and the value of USD plummeted in tandem, or if WWIII broke out, I don't think that money would flow into risky, speculative assets like cryptocurrencies. I think this question is a matter of scale.

[Zocadas]

Not only we have the innovative currency in our hand, also governments are working on new financial instruments. Depending on how smart they are, they will place in time a new crypto, or not. Or they will try to ban all cryptos, they can't control. So I don't know but have the hope, that Bitcoin will continue its "boom", that already began.

[BitcoinPanther]

In a case like conventional financial system collapsing, people will have less trust on the system and will force them to look for an alternative.  In this case, Bitcoin serves as an alternative so we can assume that part of those people who look for an alternative will see bitcoin as a potential safe haven for their money.  I am sure that not 100% will see Bitcoin as a positive thing since there are older tested ways to preserve the wealth of these people and most of them will go on that path.  But those who chose Bitcoin is enough to move Bitcoin economy into booming state.

[Compradora]

The oldest truth in the book - when a traditional economy is in peril, alternatives thrive. With Bitcoin it is exactly the same, the harder FIAT will fell the higher bitcoin will soar.
Just wait when Wall Steet or debt based western economy will collapse it will create turmoil so big that bitcoin might touch the sky.
The only question is - we have no idea when and where the crisis will start - but one is certain - sooner or later it will hit us. Stay tuned.

I also see bitcoin as an alternative economic system where all the people are equally considered inside. If a big financial collapse happens, bitcoin would boom like you said.

[xypos]

Definitely. Bitcoin is completely decentralized which means that it is an especially good hedge against financial collapses and shit hits the fan situations. As we've seen usage of bitcoin has soared in Venezuela and Zimbabwe.

These people need something in which they can store their wealth in, without having to worry about inflation.

Bitcoin is perfect for that purpose. You can also see that bitcoin is often traded at a premium for regular fiat.

[chickenado]

Not only we have the innovative currency in our hand, also governments are working on new financial instruments. Depending on how smart they are, they will place in time a new crypto, or not. Or they will try to ban all cryptos, they can't control. So I don't know but have the hope, that Bitcoin will continue its "boom", that already began.

Really? If that so then what are things that we are going to fight back? If governments aren't cooperating,it would be hard for them to trace bitcoin's footsteps, now that it keeps on rising in the cryptocurrency world.  Actually,every small beginnings keep going,so we can afford to make things possible in bitcoin. Let's think positive that it will continue to boom soon. There will be less worries for you don't need to put up such very big amount. Let's just wait and see for the upcoming good news for bitcoin. We have to discharge negativity outlook.

[illinest]

Definitely. Bitcoin is completely decentralized which means that it is an especially good hedge against financial collapses and shit hits the fan situations.

Why? In the context of nation-states and national economies, what makes a highly speculative, brand new asset class "an especially good hedge against financial collapse?" I love Bitcoin, but it seems really premature to make sweeping statements like that. To be a good hedge against world markets, an asset needs to be widely/ubiquitously valued.

I think we've seen that Bitcoin certainly has that potential, but in the scheme of available commodities, it is hardly even a needle in a haystack yet. The existence of the entire crypto economy is still not even noticeable on any macro level.

[john2231]

Not only we have the innovative currency in our hand, also governments are working on new financial instruments. Depending on how smart they are, they will place in time a new crypto, or not. Or they will try to ban all cryptos, they can't control. So I don't know but have the hope, that Bitcoin will continue its "boom", that already began.

Really? If that so then what are things that we are going to fight back? If governments aren't cooperating,it would be hard for them to trace bitcoin's footsteps, now that it keeps on rising in the cryptocurrency world.  Actually,every small beginnings keep going,so we can afford to make things possible in bitcoin. Let's think positive that it will continue to boom soon. There will be less worries for you don't need to put up such very big amount. Let's just wait and see for the upcoming good news for bitcoin. We have to discharge negativity outlook.

I think it will be depends in every country but here in my country we are increasing population who uses bitcoin here in my country even its not accepted locally we can deposit instant or buying bitcoin instantly here..
And base in what i heard here in my country bitcoin is legal and they are use this for paying people salary and we can use bitcoin for any billing of house..
Anyway i believe that bitcoin can be more boom in the future just wait and we will see the changes will happen in few years..
for now because of volatile and unpredictable price of bitcoin it will be hard to say that government also will be interested to handle bitcoin .

[ALT67890]

It is highly possible but can not be predicted as of how big it can affect on bitcoin. But even if financial system or institutions are intact bitcoin can still go bull run and be on top of all currency equivalents. Sometimes thinking about bad things that will happen in the future, we should not be at that end. Let build bitcoin individually and be part of its success without thinking the other way around.

[YuginKadoya]

Well the thing that made bitcoin mainstream in 2013 was the Cyprus crisis, where the EU forced a bail-in where customers savings were seized to bail out teh banks. Even businesses which had their payroll money in their current account to do their monthly salary run, found their money being confiscated.

The EU has now made bail-in rules the norm, and the customers of an Italian bank were also wiped out. Naturally that makes people want to hold their money in a form the govt can't steal.

Cyprus was a nice sign of the neutral position of Bitcoin being an ideal safe haven above gold. Gold has been underperforming and not rising when it was supposed to go up during times of uncertainty. Only recently gold has been going up. Goldbugs (usually the ones that sell gold) are now saying that gold is going into an all time high and crypto will go down. Honestly I doubt it. They are just trying to sell you their gold.

Bitcoin continues to shine and prove all the haters wrong. We are going to be at $5000 soon. There will always be reasons for Bitcoin to go up. It's the wonders of being a global, decentralized, neutral asset.

Back then I am also fond with gold because of it's value and really want to invest in buying golden jewelry then when I was needing money I would just went to a pawn shop to lent money by leaving Gold jewelry as collateral, that was the value of gold back then and you can get money at a high price, but yes I think bitcoin is a great investment right now and it keeps on increasing it's value but I think when fiat would go down Cryptocurrency is here to stay.

I think gold is nonsense at this point. You can buy and hold as much gold as you want... so what? not only the price doesn't outperform bitcoin, but the fact that it is literally impossible to cross a border with your wealth renders gold a pretty useless edge against your government turning against you, or any other reason you would need to have a neutral asset to defend against countries screwing up your wealth.

I can't find anything that beats bitcoin to be honest.

Up to now there is nothing that can beat bitcoin for sure but maybe someday we can never know, Gold doesn't really stand a chance against it, but I think there are a possibility that one of the Altcoins right now can but it will need a lot of years to be competent with bitcoin, but even if there is no Altcoin that can beat bitcoin there is an end to everything but we can never know what it is or how would bitcoin can end, but right now I don't want that to happen because I love having bitcoin earning and trading with it is a great stuff each and anyone should learn.

[The Sceptical Chymist]

I don't know about bitcoin being the go-to currency.  I would think the USD would be it, or gold, or some other stable form of money.   Keyword is stable, and that's one thing bitcoin isn't.  I'm also not convinced those currencies will fail altogether.   They could just be in a serious dip and might rebound. 

Bitcoin has got to get a hell of a lot less volatile before it's a safe haven form of money.

[jtipt]

BTC's supply is to imitate precious metal, so as all precious metals, one of its function is safe heaven. So I will not be surprised to see people getting BTC when the local currency doesn't work well.

Yeah that's correct, BTC has been compared to gold many times, so wouldn't be surprised to see BTC behave like gold in times of economic crisis. It would be obvious that people would search for alternative ways to store money, and after gold BTC is the best bet.

[jorneyflair]

Not necessarily a boom in bitcoin value but we have seen a surge in usage for bitcoin in countries where its economies have been torn apart by financial crisis. Such as, Venezuela, where bitcoin adoption is at an all time high.

Not really surprising. Bitcoin is designed to be a store of value.

When hyperinflation strikes, bitcoin will seemingly go up in terms of fiat but really just retain its value.

[xPPx]

I ain't trying to get rich. I'm just trying not to get robbed. BTC could go up only 5% a year all I care. I'd take 50% a year, though!

[CoinsCoinsEverywhere]

As many have pointed out, historically, financial crises of various sorts have driven some people to cryptocurrencies, which has been a boon for bitcoin.

But here's an interesting question: if a financial collapse pushes people into bitcoin, could that actually make the crisis worse because people are taking money out of the banks and other savings and buying bitcoin?  Or, for that matter, could people running toward bitcoin actually precipitate a crisis due to withdrawing too much money from the banks?  This seems unlikely now, but what about in the future if bitcoin is worth $25k, $50k, or more?

[Wipro]

As many have pointed out, historically, financial crises of various sorts have driven some people to cryptocurrencies, which has been a boon for bitcoin.

But here's an interesting question: if a financial collapse pushes people into bitcoin, could that actually make the crisis worse because people are taking money out of the banks and other savings and buying bitcoin?  Or, for that matter, could people running toward bitcoin actually precipitate a crisis due to withdrawing too much money from the banks?  This seems unlikely now, but what about in the future if bitcoin is worth $25k, $50k, or more?

That time blockchain will be top of all the banks in world like world reserve banking system. They will eager to do tie up with the blockchain technology since it is much secured and anonymous pipeline to be used. First it has to become centralized money and then we have check the  people interested from the various countries. Still I am not convinced that op mentioned countries in the top list.

[Mpamaegbu]

I am cocksure that one of the things that led Satoshi into establishing bitcoin was the global financial meltdown in 2008. It really was so chaotic that firms, companies and institutions shut down because they couldn't meet up. In 2009, bitcoin came up as an alternative to the traditional financial institution. With the Cyprus scenario a few years later, the strength of the bitcoin was tested and that proved its effectiveness. Bitcoin is above traditional financial institution and that's what scares China. The Chinese feel it's going to permanently floor their Yuan. Hence, the dramatic ban on it. Yes, that should be a boom for bitcoin.

[azguard]

I don't know about bitcoin being the go-to currency.  I would think the USD would be it, or gold, or some other stable form of money.   Keyword is stable, and that's one thing bitcoin isn't.  I'm also not convinced those currencies will fail altogether.   They could just be in a serious dip and might rebound. 

Bitcoin has got to get a hell of a lot less volatile before it's a safe haven form of money.

If this is going to happen and it will many will lokk for some possible low risk solution. Like you mentioned many will go for USD cuz its world wide spread and gold cuz it has physical value. Bitcoin will also be some good alternative for many or some other crypto coin (possible ETH).

BTW almost nothing is stable on current market exchange.