Upcoming economic crisis - crypto safe haven like gold or not?

[dothebeats]

It could be, it could be not. People would likely cling to gold if in case another crisis happens or look for another asset class in which they could stash their properties in. Bitcoin is a legitimate candidate for such a position but the question is whether volatility is still great by then. If it is, people wouldn't try to stash their life savings in bitcoin and will just move to gold. If it isn't, bitcoin and cryptocurrencies would be the strongest currency/asset class existing during the crisis until everything pans out. For now, going long in bitcoin with whatever spare cash one can shell out is a good thing, that's for sure.

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[pitiflin]

There are enough signs that an economic crisis is going to happen soon in the next 3 - 5 years.

Whether China's bubble will burst or the dollar will implode.
Do you guys think crypto will be as good an investment as gold in time of crisis?

As much as I would love for the dollar to implode, I wouldn't want for it to happen. The whole world will collapse and fall to misery. China's bubble is already on the verge to burst, its in the middle of a trade war. Crypto is not an investment. People think that, but its not. For me, at least bitcoin isn't. I use it as a currency and I proudly do so. But most people might actually resort to crypto as an investment. I watched Mr.Robot, and when everything failed and the entire banking system and credit/debit cards went down, people were hunting for crypto and hard cash. So you never know.

[Jarijah]

It sure seems like it's coming. As to your question, that's really tough to say, isn't it? Given their decentralized nature, yet all the hacks and general instability. Another question may be, would the government try to impose a mandatory state cryptocurrency, or something else, which everyone must use? Scary times, some might even say Mark of the Beast type stuff.

As to cryptocurrencies: if Bitcoin, for example, were distributed widely enough, and was adopted enough as a payment option... and the web was still up and running, it might become a good alternative currency to use. If/when that day comes, it will probably not be the time for masses of people to HODL hoards of BTC, as you'd want more coins circulating in the economy.

Actually, one of the companies we've been doing some work for was offering blockchain-based tokens pegged to the gold spot price, tokenized assets may be something interesting to take a look at for this discussion.

Thanks for posting the question,
The Cyberius team.

Appreciate your point of views. I really do wonder whether ppl will flock to digital assets.
I mean this is going to be the first crisis, where crypto is going to be an option.
Maybe the utilization of crypto as a currency will be really tested.
Who knows ... "The Big Short" was an awesome movie ... i wonder how such a movie will be in an era where crypto/bitcoin is available

[el kaka22]

There are enough signs that an economic crisis is going to happen soon in the next 3 - 5 years.

Whether China's bubble will burst or the dollar will implode.
Do you guys think crypto will be as good an investment as gold in time of crisis?

It is because bitcoin is facing a valuation against dollar and not with it. For example when bitcoin falls down in price altcoins follow, thats correlation. However bitcoin is going against the dollar and not with it. So when dollar goes down that means bitcoin will go up because you bet against each other. That is why most people are bullish on gold and bitcoin, same idea.

If you invest in bitcoin for a long term in the end even if your purchasing power doesn't get better, the amount of dollar you get rises because when dollar gets devalued, bitcoin gets more valuable against it, so in 10 years bitcoin will most definitely be higher than this price however it is important to know how higher, will it affect our purchasing power or not.

[tonysitaly]

Yes, maybe the economic crisis will come soon. I think the Chinese economic bubble and the collapse of the dollar will be at the same time. But my view is pessimistic, that is, when the economic crisis, digital money may not become a safe haven, and may collapse with the escape of money.

[Kris34]

And why such confidence that there will be a crisis.  These are just guesses.

[BrewMaster]

cryptocurrency in  general can turn into a Tulip mania bubble thing because in case of an economic crisis there will be a rush to buy them and since there is a lot of them (practically an unlimited number of altcoins) they will be in real big bubbles which will burst and damage the whole economy in general too! and it can even make things worse.

on the other hand things such as Gold and Bitcoin will shine in this situation because of their scarcity and security. specifically bitcoin because you won't have to rely on anyone for holding the gold you buy and storing bitcoin is easier and safer than storing gold! people would choose the easier and safer option meaning bitcoin and it can turn into their haven which has happened to some extent in the past too.

[pinkflower]

The economic development of the United States is very healthy, the dollar is hard to collapse, and the trade war between China and the United States may lead to the collapse of China's economy!
The high volatility of cryptocurrencies also has the potential for bubbles, and only gold and silver have real storage value!

I don't know what your sources are, but America is not doing that well. There are some short term economic patch ups done, but China owns 1/3 of America's foreign debt. Which means China has the power to influence the dollar at will. Peter Schiff was one of the few who predicted the crisis in 2008 and says there will be another 1 in the next 3 years. I'll say that America is gonna look for another war to cover up the upcoming crisis, but that's just me speculating

China has the power to manipulate the dollar but it wont. They are not willing to go to war with the nation that has the greatest military might in the world. Its more prosperous to cooperate in peace and through negotiations lol.

The trade war will be to the advantage of the Americans and we will see that in 10 years.

[darkangel11]

And why such confidence that there will be a crisis.  These are just guesses.

All signs are saying that it will be. For instance look at the S&P 500. It's at all time high right now. It looks just like BTC was in January 2018 forming a double top after a sharp increase. It's going to crash, especially that the US markets are outperforming the rest of the world. Are these companies really doing that great? I'd say they aren't but you may have a different opinion, just remember to back it up with examples.

[timerland]

I think that since bitcoin is indeed independent of all central banks and entities that are controlling the fiat's monetary policies, it is pretty much guaranteed that if a financial crisis strikes the fiat sector, bitcoin will be able to serve as a relatively safe store of value.

But it does depend on the level of adoption at the time of the economic crisis, and also what type of crisis strikes.

If we see a collapse in the value of the fiat currencies around the world, then definitely, bitcoin would not only hold its value, but may actually see a surge of adoption because the markets demand an alternative to fiat. To me, bitcoin is probably more feasible as a long term store of value and a safe haven during economic crises than even gold itself, due to its obviously advantages in terms of convenience, divisibility, and global nature, while retaining the same decentralized nature.

[Jarijah]

And why such confidence that there will be a crisis.  These are just guesses.

Just google or type in youtube "dollar collapse" or "china bubble crash", enough reports will pop up and from very legit sources.
These are opportunities for traders or investors, if you can anticipate it.

[r32godzilla]

There are enough signs that an economic crisis is going to happen soon in the next 3 - 5 years.

Whether China's bubble will burst or the dollar will implode.
Do you guys think crypto will be as good an investment as gold in time of crisis?

We have already seen economic crisis before and gold found to be a safe haven at such times.But after cryptos got introduced,we have never encountered such crisis and so we could not decide anything clearly.But I think that due to their instinct nature,people would once again choose gold to face such critical situations.

[wxa7115]

There are enough signs that an economic crisis is going to happen soon in the next 3 - 5 years.

Whether China's bubble will burst or the dollar will implode.
Do you guys think crypto will be as good an investment as gold in time of crisis?

I really think that bitcoin will be one of the best places to have your money in the case of an economic crisis all over the world, we have already seen several local cases in which a country faced economic difficulties and people turned to bitcoin, people forget that the last time there was a crisis as big as the one that is coming the US confiscated the gold of their people and then made it illegal to hold it, I think the next crisis is going to be even worse and governments may seize Gold by force and in that case bitcoin will be the perfect form of money because no matter what governments do bitcoin cannot be confiscated that easily.

[Fretcy]

In times of economic crisis this crypto currency like bitcoins will help to stabilize the economic down turn and will help in improving the economic conditions of the world, as crypto currencies helps in providing a source of income and curtail employment issues when there is an economic crisis the value of fiat currency will get down due to increase in the bad debts this bitcoins and crypto currencies will help to solve the problems as the price of bitcoins is far higher than fiat currencies and will solve the financial problems of the economy.

[1Referee]

China has the power to manipulate the dollar but it wont. They are not willing to go to war with the nation that has the greatest military might in the world. Its more prosperous to cooperate in peace and through negotiations lol.

You take the trade war far too seriously. It's nothing more than a circus where countries are measuring their d... The only negative aspect of this is that it always affects the average person, and they unfortunately don't have the buffer they need to get through this governmental ego cycle.

The trade war will be to the advantage of the Americans and we will see that in 10 years.

In 10 years no one even thinks about the trade war anymore.  

---

It's only a matter of time before pension funds allocate a few % of their holdings to Bitcoin in an attempt to hedge the risks the shitty world economy. I'm glad that I live in somewhat of a decent country, but there are countries that based on economical difficulties cut people's pensions with 10-25% which is pure madness. It could have been avoided easily by having a position in Bitcoin. Instead of constantly cutting people's pensions, they would be enjoying higher pensions over the long term. Pathetic.

[Mhd-Bobbi]

There are enough signs that an economic crisis is going to happen soon in the next 3 - 5 years.

Whether China's bubble will burst or the dollar will implode.
Do you guys think crypto will be as good an investment as gold in time of crisis?

When the economic crisis comes. They will choose Crypto as a substitute. Because crypto can meet their needs.
The problem is.
How to overcome those who do not understand crypto?

[ordeath]

There are enough signs that an economic crisis is going to happen soon in the next 3 - 5 years.

Whether China's bubble will burst or the dollar will implode.
Do you guys think crypto will be as good an investment as gold in time of crisis?

Cryptocurrency can become and exit from the global economy crisis, but it can be the opposite as well when people would be complaining saying that cryptocurrency is the reason why everything crashes.

[Orville_Brown]

There are enough signs that an economic crisis is going to happen soon in the next 3 - 5 years.

Whether China's bubble will burst or the dollar will implode.
Do you guys think crypto will be as good an investment as gold in time of crisis?

As much as I would love for the dollar to implode, I wouldn't want for it to happen. The whole world will collapse and fall to misery. China's bubble is already on the verge to burst, its in the middle of a trade war. Crypto is not an investment. People think that, but its not. For me, at least bitcoin isn't. I use it as a currency and I proudly do so. But most people might actually resort to crypto as an investment. I watched Mr.Robot, and when everything failed and the entire banking system and credit/debit cards went down, people were hunting for crypto and hard cash. So you never know.

That's a good point, we shouldn't be wishing for something that would cause misery for the entire world. The dollar isn't the best solution, but it's the only solution that is working at the moment. We can replace it further down the road. We shouldn't hope for another big market crash in order to do so, however. Just like that scene in "The Big Short" where the guy tells those two younger bankers "You do realize if you win this bet, millions of people in America are going to be homeless". It's not a bet we would want to win. It is one that we need to be prepared for though.

[Jarijah]

There are enough signs that an economic crisis is going to happen soon in the next 3 - 5 years.

Whether China's bubble will burst or the dollar will implode.
Do you guys think crypto will be as good an investment as gold in time of crisis?

As much as I would love for the dollar to implode, I wouldn't want for it to happen. The whole world will collapse and fall to misery. China's bubble is already on the verge to burst, its in the middle of a trade war. Crypto is not an investment. People think that, but its not. For me, at least bitcoin isn't. I use it as a currency and I proudly do so. But most people might actually resort to crypto as an investment. I watched Mr.Robot, and when everything failed and the entire banking system and credit/debit cards went down, people were hunting for crypto and hard cash. So you never know.

That's a good point, we shouldn't be wishing for something that would cause misery for the entire world. The dollar isn't the best solution, but it's the only solution that is working at the moment. We can replace it further down the road. We shouldn't hope for another big market crash in order to do so, however. Just like that scene in "The Big Short" where the guy tells those two younger bankers "You do realize if you win this bet, millions of people in America are going to be homeless". It's not a bet we would want to win. It is one that we need to be prepared for though.

So many points in where I agree for sure. I would love to see misery spared, but actions have consequences. America, just like China btw are living with maxed out credit cards. The problem for the US is that 1/3 of its debt is in the hands of China.

The problem is also that overspending is just not sustainable, the bill will come. Our grandparents' generation and our parents generation have accumulated a debt that our generation can't pay off. I'm wondering if country heads think that their debt will be forfeited.

As a trader, we just play the markets. If the big short on the dollar comes, you're a fool not to try to make money off of it. I think Bitcoin will stick around and I do think the value of it could go down as the dollar will crash, but when economies will recover so will the value of bitcoin. Getting in at the right price, that's what I'm banking on.

[magneto]

There are enough signs that an economic crisis is going to happen soon in the next 3 - 5 years.

Whether China's bubble will burst or the dollar will implode.
Do you guys think crypto will be as good an investment as gold in time of crisis?

In terms of protecting one's wealth in a hyperinflation/fiat depreciation crisis with an independent asset class, I think that bitcoin is really going to be the way to go as a safe haven to store your wealth for both the short and long term.

Even though right now, people may still think that precious metals are the true safe havens, once a real collapse brought by hyperinflation strikes, people will realise that bitcoin is decentralised just as gold, but is a lot more practical in transactions than gold. That could even bring in more adopters as a result. As bitcoin's supply is under controlled inflation instead of unregulated inflation in terms of fiat (every fiat has lost tens of times of its value from just a few decades ago), its value in real terms shouldn't falter when fiat currency's does.

But in a deflationary crisis, there really isn't much to look onto in the past, but it should definitely perform better than asset classes such as property and stocks, imo, and hold its value stable. After all, bitcoin was introduced directly after the 2008 recession, and gold and silver didn't actually perform that badly at all within that recession.