How will financial crisis affect crypto?

[lixer]

It looks like the downtrend on the financial system is inevitable. How do you think this will affect crypto? People used to refer to gold in the past, will they move to crypto this time instead?
I kinda think, that the upcoming crisis actually gives crypto a chance.

I don’t know this for sure, though I think all these things doesn’t have anything to do with cryptocurrency. I know for sure that the interest in Bitcoin has been growing a lot this year especially because of the bull run, although a lot of people never expected this because of the coronavirus and how the market decreased earlier, they thought that it was not going to recover again and finally we are here.

But, now that we have reached a new ATH price will the price continue going up? That’s another question we have got to ask. Normally after the price reaches new ATH, it drops later. That’s why I said I don’t think it has anything to do with economy.

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[Dragonfund]

This original topic was posted in March 2019. Was there even a financial crisis back then? I can’t think of what “financial crisis” OP was even referring to. The world we live in today is so vastly different than whatever prompted this post nearly 2 years ago.

Whatever world we live in, one must be financially woke in order to know the necessary step whenever it's needed. We once had a financial crisis when forex and shares dump hardly, sadly bitcoin has never been in existence, it will really save lots of people then but today we have bitcoin and other Alts that are doing well in this aspect.
The way covid-19 made many lost heavily, it will be difficult to convince some Noobs in to this industry. This is the reason we need to be safe educated about the whole thing. Financial crisis is not good any business either digi3or physical.

[Twentyonepaylots]

The financial crisis brought about by the pandemic birthed two types of persons. One that became broke and found a way to make money, and one that became broke and stayed broke for the rest of the pandemic. Cryptocurremcy paid a pivotal role in the success of the first person as it is but one of the few things left untouched by the pandemic, therefore becoming a viable way to earn money for these people.

This is what I like about crypto, sometimes financial crises that occur make crypto prices go up even more. Maybe because many people
think investing in crypto can be a store of value. So the rich and many big companies decide to invest in crypto, compared to saving his
wealth in a bank that risks falling value due to inflation. We know that in the current economic crisis, the pandemic has yet to end,
making many countries make policies for printing money, of course this will have a bad impact on fiat. So crypto is a solution in financial
crisis situations like now. Especially with the increase in the price of Bitcoin, can get profit if trading Bitcoin now.

What can we say, the demand for it grew up which caused its price to increase, not to mention these private companies who pumped the coin in the past few months. The coin will definitely skyrocket in price.

[AjithBtc]

During the pandemic big changes have taken place around the globe. This financial crisis has affected the World market and has missed the cryptomarket. This is a reason more number of bitcoiners are feeling happy.

Overcoming the financial crisis isn't an easy thing. As an individual, some has made use of the pandemic period for creative development and has made their startups. On the other side people starve for food and left blank as they're aren't able to think anymore when taken away from the jobs. Survival is getting hard everyday.

[Wipeout2097]

When the framework is coming up short and the standard is searching for unused options or opportunity. It's without a doubt gold and oil is would be their primary need since it as of now encounters those ancient dim days as well. According with such later condition when the decentralized advanced cash is happening, and being considered for the individuals since of its openness, decentralization in common. I'm beyond any doubt its individuals will have a thought to utilize cryptocurrency to unravel the issue. In trades, the showcase will get an unused stream.

[create_crypto]

Here what I found styding bitcoin corellation with gold:

- Bitcoin returns have an asymmetric response to market shocks, which is of the same direction as for major precious metals like siver etc.

- Bitcoin correlations behave completely different from Gold, in particular in market distress.

- Bitcoin is not so stable in price like gold. It is very diffucult for gold been so volatile like bitcoin.

- Bitcoin as an asset does not resemble any other conventional asset from an econometric perspective.

[imking]

Next financial crysis will come, that can't be avoide it's part of the cycle. Maybe this time people will be more prepared and cryptocurrencies are one of the options that is available to them. But I don't expect that we will see mass usage of Bitcoin as a back up in crysis because on a global scale still isn't adopted and recgonized enough and many people are still reluctant to use it.
But still I think that the use of Bitcoin when crysis appears will increase and that will also influence the price in positive way.

Yes I agree with you. Financial crisis is no doubt inevitable however, despite financial downtrend, this then gives opportunities for digital currency to get more recognized by the public sector and be used in the market. We must take this crisis as an opportunity to adapt to change positively.

[hahay]

There is no lasting effect because it has been proven and in fact the effect is only significant at the beginning, it is a different circle because crypto is not a currency that will not continue to weaken during a financial crisis. Something that happens is the opposite where when a crisis occurs, there will be many people looking for another investment, so it is very possible that crypto which is seen as a commodity for some people will be an option for investment and of course it will make the price continue to strengthen when the crisis occurs.

[sana54210]

There is no lasting effect because it has been proven and in fact the effect is only significant at the beginning, it is a different circle because crypto is not a currency that will not continue to weaken during a financial crisis. Something that happens is the opposite where when a crisis occurs, there will be many people looking for another investment, so it is very possible that crypto which is seen as a commodity for some people will be an option for investment and of course it will make the price continue to strengthen when the crisis occurs.

That's right, we all have seen what happened to bitcoin in march 2020, it went to 3.8k dollars, it NEARLY made 10x return from that, that's crazy, we have seen 34k at the top if I am not wrong, no idea if we managed to break 35k or not. So that means at least 9x return, so yes there could be financial crisis that makes bitcoin go down, it did that on march because everything went under and bitcoin went under as well, but it also means that we are not doing that bad at all afterwards, we have gone 9x while everything else sucked.

This is why I highly suggest that nobody worries about any financial crisis if you have money in crypto, if you have even a small decent amount on crypto that means a financial crisis could hurt others but it would help you. However not having job guarantee could cause all of your crypto to be sold, that's a bit bad part.

[mezzaluna]

It looks like the downtrend on the financial system is inevitable. How do you think this will affect crypto? People used to refer to gold in the past, will they move to crypto this time instead?
I kinda think, that the upcoming crisis actually gives crypto a chance.

I guess the relation of real world investments is different from investments made within the Cryptocurrency Industry. We know that last year some stocks went down but we saw a different trend for Cryptocurrencies which is upward (and still going upward currently). However, the possibility of Cryptocurrencies crashing is on everybody's mind and they are still wary to keep watching the trend on which they are currently invested on.

It might affect the users who made investments on both of the system which is a great idea but you really need to study a lot before doing that or invest a lot of time around financial investments stories.

[Tahsin Kabir Kollol]

The coronavirus epidemic is causing an economic crisis around the world, and every country will soon experience economic stagnation. This situation makes cryptocurrency users very worried about the future of cryptocurrency, but we are currently seeing the opposite. The economic downturn caused by the epidemic has already had a positive effect on cryptocurrency. Extensive analysis has shown that due to the economic crisis, small investors have withdrawn some of their money from cryptocurrencies, but large investors in other sectors have not been able to invest in their fields and invest their money in the cryptocurrency and that makes cryptocurrency price pump. So it can be said that big investors in other sectors are becoming interested in cryptocurrency or will be due to this economic crisis which will bring positive results for cryptocurrency.

[btc_angela]

The coronavirus epidemic is causing an economic crisis around the world, and every country will soon experience economic stagnation.

At least governments around the world are also looking for ways to stir the economy. Some businesses are already open and this could be a good start.

This situation makes cryptocurrency users very worried about the future of cryptocurrency, but we are currently seeing the opposite.

I don't think that cryptocurrency users are worried about the future of the market, have you seen that the price specially bitcoin has reach all time high?

The economic downturn caused by the epidemic has already had a positive effect on cryptocurrency. Extensive analysis has shown that due to the economic crisis, small investors have withdrawn some of their money from cryptocurrencies, but large investors in other sectors have not been able to invest in their fields and invest their money in the cryptocurrency and that makes cryptocurrency price pump. So it can be said that big investors in other sectors are becoming interested in cryptocurrency or will be due to this economic crisis which will bring positive results for cryptocurrency.

That's exactly what is happening right now, Bitcoin becoming an hedge to our wealth or even an investment that will grow overtime. It sort of protect our money in this financial crisis.

[fullhdpixel]

The coronavirus epidemic is causing an economic crisis around the world, and every country will soon experience economic stagnation. This situation makes cryptocurrency users very worried about the future of cryptocurrency, but we are currently seeing the opposite. The economic downturn caused by the epidemic has already had a positive effect on cryptocurrency. Extensive analysis has shown that due to the economic crisis, small investors have withdrawn some of their money from cryptocurrencies, but large investors in other sectors have not been able to invest in their fields and invest their money in the cryptocurrency and that makes cryptocurrency price pump. So it can be said that big investors in other sectors are becoming interested in cryptocurrency or will be due to this economic crisis which will bring positive results for cryptocurrency.

That's what I was shocked about as well. What do we have in the world right now? A big pandemic that closed down too many companies, that made a lot of people jobless, that made people not even pay their rent in the richest nations of the world, it made people of poor nations go out to work even in pandemic because they couldn't even afford to stay at home. So, all around the whole worlds economy is in big trouble and nobody has money. What happened in bitcoin? It has increased almost 5 times, it was 7k and became 35k, how?? I mean normally what does bitcoin need to go up?

It needs a lot of people buying bitcoin, well if the world is in such a bad situation and everyone is a lot poorer this year, who did really bought bitcoin to make it go up? If we are poor, where did that tens of billions of dollars came from to make it go high? I have noooo idea.

[tyz]

Financial crisis affect crypto positively. Like what happened this covid 19 pandemic, many people lost their job, almost all business establishment closed, everything is affected with this pandemic and it caused financial crisis which paved the way for more bitcoin recognition. Bitcoin and other cryptocurrency become the alternative source of income of many people just to survive.

Not really. If you go back to March last year, the price of Bitcoin collapsed due to Covid restrictions and an expected financial and economical crisis. But after it became clear that the economic situation was not going to be as bad as expected, and after a huge amount of money was made available by the central banks, the price recovered. If we were in a real financial crisis like 2008, then the Bitcoin price would not be as high by far.

[DrBeer]

The only impact the crisis has had on cryptocurrencies is the rocking of the speculative market, which the crypto market is almost 100%, if not 100%! In the "troubled times", speculation is a great way to make money, and the crypto market is very convenient. It has one advantage over, for example, speculation on the classic stock exchange. There are virtually no restrictions on "entry" into this market. Any home user who has a payment card and does not live in territories that have restrictions for cross-border payments can "bring" their own, even a couple of dollars to this market and try to earn

[FlightyPouch]

There are pros and cons to the effect of bitcoin, some say it provides a good opportunity to own bitcoin, some do not agree, but I personally think the opportunity for bitcoin can be minimized or used during a crisis, and bitcoin can be a valuable asset reserve

Well, a lot of people invested in bitcoin since the price went down at $3K last year. Maybe that is the reason why the price rose to what we have right now. The reason they inveated is the fact that as fiat currencies values are affected, bitcoin remain unfazed and even reached new ATH.

[AndySt]

For me, the financial crisis helps to pump the bitcoin's market its the opportunity for it. Many speculators hang tight for the crash and put their asset when the market goes down. However, by watching the outline of bitcoin's value its appears to be that the financial crisis is presently far away from the bitcoins. The cost is higher than our assumption and now it's difficult for a financial crisis to crash such sum.

That's exactly how high the cost is and confusing, because the memory is still fresh past ups and downs of the exchange rate price of Bitcoin. I think that no one will be very surprised if after some news the price will collapse twice or vice versa will continue its sharp growth. The situation is also dangerous because the pandemic has overlapped with the already planned financial crisis and now it is not entirely clear what will happen to the economy when the pandemic passes and there will be some recovery in economic activity.

[Twentyonepaylots]

Financial crisis affect crypto positively. Like what happened this covid 19 pandemic, many people lost their job, almost all business establishment closed, everything is affected with this pandemic and it caused financial crisis which paved the way for more bitcoin recognition. Bitcoin and other cryptocurrency become the alternative source of income of many people just to survive.

Not really. If you go back to March last year, the price of Bitcoin collapsed due to Covid restrictions and an expected financial and economical crisis. But after it became clear that the economic situation was not going to be as bad as expected, and after a huge amount of money was made available by the central banks, the price recovered. If we were in a real financial crisis like 2008, then the Bitcoin price would not be as high by far.

Or because it is affected by whales pumping bitcoin up. March price point is at the lowest and at the most hopeless it has been ever since bitcoin reached ATH, and the majority of us, admit it or not believed that it will be the death of the cryptocurrency giant. But through the help of these private companies, who bought thousands and thousands of bitcoin at once, the price recovered, soon after, confidence on the coin begun to resurface which leads us to the current market situation. The financial crisis struck crypto like a truck, and if it weren't for these companies cryptocurrency subreddits will be pinning anti-suicidal posts and messages by now.

[Adamini]

This is a worldwide thing. As long as there is an Internet, there will be bitcoin, and they can coexist

[tygeade]

We have seen what kind of financial crisis happened at the price of crypto was just fine. People should stop caring about a huge crash in the world that would be horrible for crypto, thats not going to happen because crypto was created literally for that reason. 2008 was a financial crisis and even though Satoshi and many before him tried to have a legit and decent currency on digital platform the blockchain system was the one that got accepted as the only proper one. That is why this is against the crashes and against crisis because crypto is largely unaffected.

Definitely price could be affected a bit, but the reality is that whatever made bitcoin 40k is still out there, it is still the same bitcoin, doesn't matter if you buy it or sell it, bitcoin is bitcoin and if it is 40k once it will be again, even if it falls to 40 dollars it will go back to 40k.