How would Bitcoin react to a global financial crisis?

[Brunus]

With its resistance to inflation, bitcoin will probably behave better than any other currency: in crisis, governments print more money, so fiat currencies lose their value. Bitcoin, probably not.

[cybersofts]

It has been 10 years since the 2008 financial crisis and there are a number of financial experts out there predicting doom and gloom to hit the financial world this year. To be fair, every new year brings new crazy predictions, so, although I am not reading too much into it, It did get me thinking - how would bitcoin hold up during a financial crisis.

We know gold is able to withstand a crisis, but with the price of gold very much being controlled nowadays, it might not be a good idea to use them as a comparison.

Interested to know peoples thoughts on the matter, what do you think would happen to bitcoin during a financial crisis?

I think bitcoin will also withstand such crisis because it can never affect the entire world at the same time. Bitcoin very strong today because it is fast, secure, and decentralized. If the economy of one country fall that doesn't mean the bitcoin will also go through the same situation. Bitcoin is a currency that is acceptable everywhere around the world because it offers global payments. The bitcoin has limited supply of only about 16.7 million bitcoins in circulation worldwide at the moment, that is makes bitcoin every valuable.  

[bob3772]

It has been 10 years since the 2008 financial crisis and there are a number of financial experts out there predicting doom and gloom to hit the financial world this year. To be fair, every new year brings new crazy predictions, so, although I am not reading too much into it, It did get me thinking - how would bitcoin hold up during a financial crisis.

We know gold is able to withstand a crisis, but with the price of gold very much being controlled nowadays, it might not be a good idea to use them as a comparison.

Interested to know peoples thoughts on the matter, what do you think would happen to bitcoin during a financial crisis?

I feel torn on this one, bitcoin could increase as people look for something away from the traditional corporate world and find safety in bitcoin, alternatively it could follow the same route as everything else and end up crashing. It's really hard to tell, it also depends what the reason for the crash is.

[haroldtee]

With its resistance to inflation, bitcoin will probably behave better than any other currency: in crisis, governments print more money, so fiat currencies lose their value. Bitcoin, probably not.

That was the main essence behind bitcoin's invention anyway, so as to avoid all these economic crisis caused by manipulation of governments due to their monopolies and policies, which eventually end up affecting the masses the most. Bitcoin is a deflationary currency, so in the case where we have a global financial crisis, that may even be a stage where people get to see bitcoin as a main reserve to fall back on to retain their currency value and even get more value in the long run rather than it losing value. We can just take a clue from Zimbabwe right now.

[removebeforeflight]

Financial crisis would affect only paper currency and Bitcoin should peak during that time I think. Due to decentralised and digital currency (Bitcoin) there won't be any impact for cryptocurrency, however cryptocurrency would move in the opposite direction. I pray there shouldn't be a financial crisis again but if it happens bitcoin is safe and would show its bullish during recession for sure.

[ETHtotheMOON1]

would grow like crazy

[bering]

there was several countries who currently facing financial crisis with high inflation for every days such as Zimbabwe but in my view having bitcoin is individuality and those who have bitcoin only can solved their financial crisis personal and don't have any impact for global financial because bitcoin users still less if we compare from the popularity people in the world so untill now bitcoin still can't called as the solution of economy global

[william8829]

I guess it would depend on the nature of the crisis and people's behavior during the crisis. I'm not sure if many would run to an intangible asset once a crisis occurs. If people choose to panic sell and dump all their coins, then the value would drop or possibly crash. Gold may have been able to withstand a crisis however bitcoin may not be that resilient despite that its decentralized. Unlike with fiat, it does not have the same kind of use for people yet so it's hard to tell how it will fair in a crisis. The thing is, it's going to be affected for sure in any part of the world that it is in.

Exactly.  What financial crisis are we talking about?  What will be the underlying cause of this crisis?

The 2008 crisis had it roots in something called the The Gramm–Rudman–Hollings Balanced Budget Act.  This law was enacted in the 80's and resulted int the sub-prime mortgage which lead to the banking and financial crisis.

Will the nearly trillion dollars invested in cryptocurrency and trillions of dollars to follow contribute to the next recession?

[junetuesdays]

I'm of the opinion people will transfer money to something that has proven to hold its value as currencies decrease in value.

Ever since the gold standard was scrapped the concept of money vs assets has become completely pointless, giving banks complete control over wealth creation, literally giving them the power to create wealth and the choice of how it is distributed.

Since then the overall debt of the world has grown so much that it is completely unmanageable, this was always the plan as interest payable on debt is physically impossible to pay back unless someone else loses out which in most cases is poor people through no choice of their own.

The thought of an unregulated currency with no central bank must terrify the financial elites, as this takes away the very control that has made them so rich in the first place and the fact no war can be started to stop it makes it even worse for them.

If people decided to choose bitcoin the entire ecosystem of world economics will change for better or worse I'm not sure, I'm of the opinion people probably will.

Its all pointless as nothing is worth anything unless people are willing to pay for it, bitcoin is no more / less tangible than a dollar bill

 

[God Fist]

A global financial crisis isn't something that can really affect big investors , since crises only make the rich one richer and the poor one poorer so who ever is sitting on millions of dollars will just get his pocket more stuffed  . This will maybe discourage lots of small investors or just normal users and make them change their minds from investing or just dealing with bitcoin , but that won't effect the cryptocurencies since a minority of big sharks own the majority of the supply .

[Cryptophorus Columbus]

Actually, nobody knows exactly what can happen, but in case of a crisis probably cryptomoney will be safer than fiat money, due to their resistance to inflation. Of course, in case of big crisis or global war, nothing is better than gold.

[Chikitita2004]

I do think that during a financial crisis the value of bitcoins instead of rising will fall for sure , because it's not like gold , it's not fixed instead bitcoins lead to value when they finally gets investments coming their way and in that sense during a crisis there won't be much money to be invested , instead people will try to take money from wherever they can and thus I answered like this , it's really weird to think that it's value will rise that senario is kind of impossible , but it may if it dominates the cryptocurrency market.

Iam also thinking the same. Though it is not dependent on economic status but i also think it will affect somehow during finacial crisis. There will be scarcity in money so there will be less investors and since bitcoin will be less bought the price will also be affected.

[Dreamchaser21]

I think the price will not be affected by the financial crisis, its price will continue to rise because bitcoin may be like their gold is not affected by inflation or crisis effects. maybe the price will go down but only temporarily, then up again just as before.

Financial crisis will surely affect the market of cryptocurrency and I think the result is very positive. But we can't tell what exact things to be happen and I do hope that this market will survive no matter what.

[KwizatzHaderach]

When there is a downturn in the traditional markets, money flows into bonds or gold as safe haven. Bitcoin is currently like gold which is a storage of value. I can only surmise that any crisis will surely trigger large amount of buys.

[Washball]

In a global financial crisis bitcoin will be worthless. Bitcoin is so valuable at the moment, because it's being used for investing by financial institutions as well as the mainstream. The first thing they'll do is to cash out, which will cause Bitcoin to crash.

[furry04]

2008 crisis have given btc the opportunity to be formed and created. And if there would be another crisis in my opinion btc will sky rocket and replace some currencies somwhere.

[frowsiter]

Im not sure what would be the aftermath but it could be disaster to bitcoin in first place. The reason is simple, bitcoin that we see today is getting its value all due to the fact that real money or real world fiat is being transferred into it as part of investment. This real money is what giving the BTC a real value. Without this real investment bitcoin is nothing but just the algorithmic junk and neither of which could be taken as proof of investment. So during the financial crisis the demonetisation of things is first step to save the nation from getting into trouble. This can be done with BTC also and it could shut forever or may devalue quickly due to crisis. Im sure its not like Gold which will still be able to trade itself because there is no point in doing that. 

[cydrix]

It has been 10 years since the 2008 financial crisis and there are a number of financial experts out there predicting doom and gloom to hit the financial world this year. To be fair, every new year brings new crazy predictions, so, although I am not reading too much into it, It did get me thinking - how would bitcoin hold up during a financial crisis.

We know gold is able to withstand a crisis, but with the price of gold very much being controlled nowadays, it might not be a good idea to use them as a comparison.

Interested to know peoples thoughts on the matter, what do you think would happen to bitcoin during a financial crisis?

Likely go along the road to the crazy type of it. Bitcoin would not react to it rather it depends on the one thats using it. It is likely to be low if there was such as that. Gold is a different story it is a physical material however Bitcoin surpassed its value over just 10 years and gold have been going since ages.

[dejan_p]

that could be the breaking point fiat vs crypto, in favor of crypto
i assume it would trigger a massive cash flow into crypto, and cryptos shooting through the roof

not looking forward for another recession but i'm curious to find out what would be the outcome

[mharz]

It has been 10 years since the 2008 financial crisis and there are a number of financial experts out there predicting doom and gloom to hit the financial world this year. To be fair, every new year brings new crazy predictions, so, although I am not reading too much into it, It did get me thinking - how would bitcoin hold up during a financial crisis.

We know gold is able to withstand a crisis, but with the price of gold very much being controlled nowadays, it might not be a good idea to use them as a comparison.

Interested to know peoples thoughts on the matter, what do you think would happen to bitcoin during a financial crisis?

Likely go along the road to the crazy type of it. Bitcoin would not react to it rather it depends on the one thats using it. It is likely to be low if there was such as that. Gold is a different story it is a physical material however Bitcoin surpassed its value over just 10 years and gold have been going since ages.

I guess bitcoin was reacting like "BLAH! BLAH! BLAH!", because crypto currency were always ready on economical crisis. In addition more people are expecting good services from bitcoin together with the other altcoins that's why they were invest in this coin.

Im looking forward that bitcoin value was not affected any problems happen in digital currency.