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d0r10n (OP)
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October 23, 2017, 02:30:44 AM |
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HSBC sent an alert that there may be an imminent crash of stockmarket similar to 1987 Black Monday https://www.rt.com/business/362618-stock-market-severe-fall/If this happens again, what's everyones opinion on the effects on crypto? Would a bunch of burnt investors jump on board? |
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The Bitcoin network protocol was designed to be extremely flexible. It can be used to create timed transactions, escrow transactions, multi-signature transactions, etc. The current features of the client only hint at what will be possible in the future.
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HabBear
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October 23, 2017, 02:50:28 AM |
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These two markets aren't correlated. So in theory, nothing. Nothing happens.
Ideally we'd see wealth move from the weak market (the stock market, people predict weakness is coming) to the strong market (people in bitcoin don't seek the bitcoin market weakening). But this assumes there is already a mechanism for money in the stock market to reach the bitcoin/crypto market. That mechanism doesn't really exist. Most people in the investment world (particularly the every day folks) aren't involved in Bitcoin. They're likely not to quickly jump to Bitcoin because they still don't see it as a viable market to be in.
That could change though if we see a prolonged bear market on Wall Street.
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Mometaskers
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October 23, 2017, 06:43:26 PM |
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Well, they can jump... if they still have some left. I don't see crypto suddenly booming from a stock market collapse though. Especially if said investors haven't been into cryptos before. It would also require they take their remaining money out of the stock market and transfer that to cryptos, which might not always be easy.
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deadthings
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October 23, 2017, 06:51:14 PM |
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I think there would be some chance of a small jump up the whole situation. Regards.
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Quidat
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October 23, 2017, 07:31:40 PM |
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There wont really be any effect at all knowing that stock market and cryptocurrency world isnt really connected to each other on which i dont even believe that those people who being affected on such stock crash would mind to jump in on a more volatile world of crypto.They would really surely have the doubts and fear to invest and might lose up money even more. |
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avikz
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October 23, 2017, 07:40:28 PM |
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There is no co-relation between these two markets, so technically nothing should happen to bitcoin or crypto market as a whole. Instead we may see a rise in bitcoin market because a lot of worried investors will try to find a separate place to invest or park their liquid money during the time of turbulence. It is just the similar mentality behind the gold price. Whenever there was a market crash, the gold price goes up steadily. Because a lot of investors pull out their funds from the stock market and start buying gold to save their capital investment. So crypto world can also serve as a parking place for withdrawn money in that case. But that's just an assumption. We may or may not see this happening. |
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dinoloverpete
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October 23, 2017, 08:35:36 PM |
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Actually I think probably the opposite would happen, if the stock market crashes it will send fear throughout all markets and I suspect we would see a smaller in scale crash in crypto as well.
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Kr8os
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October 23, 2017, 08:48:45 PM |
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ICOs are similar stocks in that you're funding the company through investment. I want to say they are more like substitutes in a way -- if you think something is going down in the stock market, go for the ICOs if it looks stable. I don't think one directly affects the other, but they are definitely comparable markets.
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greatk
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October 24, 2017, 08:39:34 AM |
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If the stock market collapse, I feel a little of the fund would move into Crypto trading, especially the established cryptos
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TheCoinGrabber
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October 24, 2017, 04:01:27 PM |
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The general idea was that the money "would" move from stocks to crypto. How would they do that though? With the market crashed, all those stocks would be worth little. Would anyone bother buying those so that the money would then be moved to crypto?
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Almat
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October 24, 2017, 04:21:11 PM |
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I'd say crypto would be able to benefit from it a little. People looking to invest their money somewhere else will only really have a few options, and this is one of the best. Trading cryptocurrencies are also quite similar to trading stocks, so why not?
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Hydrogen
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October 26, 2017, 08:35:43 PM |
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There are many comparisons drawn between bitcoin and gold. Some go so far as to label bitcoin as "gold 2.0".
It is possible that in the event of a stock market collapse bitcoin will behave similar to gold during past market collapses.
It is also possible that if the stock market crashes investors will look for investments other than stocks which could create a massive influx of bitcoin/crypto investment. This in turn could drive the price of btc, and crypto market caps, higher.
I haven't been following the stock market enough to think of a big crash other than 2008. There haven't been any big crashes that I know of since bitcoin's inception. If there is a crash: we will found out how btc/crypto reacts to stock market collapses.
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thr3
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October 26, 2017, 09:11:01 PM |
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Just so you all know it is not only HSBC sounding the alarm, everyone in the market is. A crash is imminent.
If you have been in the cryptocurrency space long enough, you will probably remember what happened to the price of bitcoin during the EU financial crisis when things were looking really bad for the EU.
That's how you hedge for the future.
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FrueGreads
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October 26, 2017, 09:12:59 PM |
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I'm not sure that could happen in an easy way. In the event of a crash, things will happen real fast, as everyone tries to save or hedge their funds. I think they normally use stable assets like gold, and maybe real estate, although I'm not sure real estate can be easily trusted. Bitcoin has a lot of potencial, and it's getting popular, and it keeps being compared to gold, but for institutional money to flow into crypto just like that, the liquidity and the transactions per second would have to be much bigger that what we currently have. Maybe if we already have bitcoin on major stock market exchanges that could happen.
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digitx
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October 26, 2017, 09:46:01 PM |
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The next crash that comes will tell if Bitcoin is a real safe haven asset or not. Given the amount of publicity that it has received and most people's willingness to use it now - I think it may one day achieve that status.
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BelieveInBitcoin
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October 27, 2017, 10:45:55 AM |
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Eh, no. That report is dated last year. |
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trako
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October 27, 2017, 01:34:01 PM |
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crypto currencies love unstable air. so when the normal stock market goes down, the crypto money goes up.
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webtricks
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October 27, 2017, 02:03:27 PM |
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Possibly not, it is normal trend that when investors face severe downfall in their stock prices, they turn conservative and keep amount in liquid form rather than shifting it to other investment alternative. However, prices of stocks depend upon several factors like performance of company, increased number of shares, etc. But prices of cryptocurrencies on other hand largely depends upon the influx/efflux of investors. So there lies a significant possibility that investors may turn to cryptocurrecnies if Stock market faces crisis. |
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Yuhee
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October 27, 2017, 02:31:35 PM |
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Possibly not, it is normal trend that when investors face severe downfall in their stock prices, they turn conservative and keep amount in liquid form rather than shifting it to other investment alternative. However, prices of stocks depend upon several factors like performance of company, increased number of shares, etc. But prices of cryptocurrencies on other hand largely depends upon the influx/efflux of investors. So there lies a significant possibility that investors may turn to cryptocurrecnies if Stock market faces crisis. I think it is not just easy for stock markets also to fall. And the market is just wathlist for the comodities if how much was sold or where to sell it. It doesnt really affect how the goods are produced or rather mined. Their are many markets that could use bitcoin and it is not just found in one place. Normally price should go down but i don't think a crash will ruin how bitcoin have helped and grown over the years. |
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carlfebz2
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October 27, 2017, 02:33:47 PM |
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crypto currencies love unstable air. so when the normal stock market goes down, the crypto money goes up.
We cant still be sure if those investors would decide to jump on Cryptocurrencies if they would able to suffer such decline on stock market.Maybe there would be stocktraders would make such decision but not fully switch into things that they don't even have any idea on what it is. Knowing stock traders or investors would most likely not to engage into non-regulated things. |
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