How will financial crisis affect crypto?

[Kemarit]

Well it could give crypto a chance, but I guess for casuals investors, I don't think that they will go full crypto. I don't know if you have been in last financial crisis in 2008, but based on my experience I needed cash that time because I lost a job and have to pay lots of mortgage so I think the opposite could happen as well. Casuals selling their beloved crypto because they needed money to feed and bring food in the table. But for those who have tons of money, probably, they would go and put something in crypto as a hedge, but I'm sure they will spread it out amongst gold and other precious metal. So if you are thinking and wanting to survived the next great economic crisis, now is the time to invest so at least you have have a lot of advantages to say the least if ever it will happen in the future. You need to act, not react.

[Ezenwanyi]

The financial crisis will affect crypto negatively more.
My assumption is based on this scenario, a financial crisis will cause people to be cash trapped and those in cryptocurrency may start selling their holdings in order to meet up with their financial challenges .Some of those who would want to sell ,may be selling at a miserable low price which constitute dump.

[YinShuiSiYuan]

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.

Another financial crisis may have a positive impact on cryptocurrencies. Already during the crisis in 2008, people showed looking for financial independence and limiting the influence of banks. Therefore, the financial crisis may be a great opportunity for crypto to increase the importance of financial markets.

[pishite]

Cryptocurrency can't replace gold! She will take its place in the pc sphere. She will be used for online shopping, will be used for transfers between accounts via payment cards, etc. There will also be an opportunity to invest in it in new banks, as now they do with foreign currencies, will buy btc, ethereum, waves, universe(uni)...

[ASHLIUSZ]

Financial crisis won't make any impact upon bitcoin in the short or in the long, as it is associated with technology only the issues that arise with the blocks will create some sort of congestion. The previous thing happened with the transaction fee, which further slowly got resolved. Crypto market is independent of other digital markets that don't function solely.

[celot]

By crypto could make financial world more better with using bitcoin and altcoin as payment transaction many benefit getting seller and buyer where their transaction only needed short time and could be more faster than other payment ways.

[artbart]

This depends on what causes the crisis. I believe the next crisis will come in the next year or two, and it will result in collapse of fiat as we know it. If dollar dies,the world economy will be hurt as hell, and it will be hard to think that new fiat can solve the problem. Euro can collapse as well because of countries like Italy. When fiat is done, the most natural solution seems to turn to cryptocurrencies, since they are naturally limited and decentralized. Yes, volatility is a huge downside, but at least hyperinflation is barely possible, and there are no authorities that can really mess things up and cause another crisis.

Well, FIAT currencies are not shitcoins to simply collapse and disappear. But the more people start using crypto the less volatile it actually should be over the time. Also, volatility is kinda solved via stable coins, so..

[Kakmakr]

We only need to look at what happened in 3rd world countries like Venezuela and Zimbabwe when they experienced financial difficulties, when their fiat system failed, to see what will happen in first world countries, when it also fails. The citizens of that country started to buy bitcoins to protect the value of their fiat currencies.

You do not have to speculate about this, because we already have several examples of what happened in other countries. <Greece> 

[shesheboy]

Well, FIAT currencies are not shitcoins to simply collapse and disappear. But the more people start using crypto the less volatile it actually should be over the time. Also, volatility is kinda solved via stable coins, so..

Well, FIAT currencies are not shitcoins to simply collapse and disappear.

fiats can collapse but not as big as what we seen on cryptos and they wont dissapear either  .

But the more people start using crypto the less volatile it actually should be over the time.

no meyt  . the more people use crypto the more volatile it gets because people usually buy and sell at all times  .

Also, volatility is kinda solved via stable coins, so..

stable coins seems to be useful to secure the value of your cryptos but it cannot totally stop the volatility of the market  .

but overall , i dont think that financial crisis affect crypto's because cryptos are only online and they arent somehow connected to fiats  .

[deisik]

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

What upcoming crisis are you talking about?

Other than that, this question has been beaten to death really (in fact, many times), so why come up with it again? Anyway, the short answer is we don't know. We don't even know whether there'll be a new financial crisis at all, to begin with. People have been preaching a new financial meltdown for a decade already, but we have yet to see the shit hit the fan for real. We are not even remotely close, apart from regular fear mongering (like insane debt levels)

The long answer is that if life becomes substantially worse overall (due to economic downturn or whatever), don't expect too much from cryptocurrencies as people under these circumstances will be looking for cash on hand, not coins. Further, gold and cryptocurrencies are on different ends of an investment yardstick, so if there is a gold run, it will be a run from fiat as well as crypto currencies (or any speculative assets, for that matter)

[magneto]

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've actually thought about something similar regarding whether a financial crisis will lead to more adoption for decentralised cryptocurrencies.

Right now, people may not see a need to adopt cryptos as they deem fiat to already suit their needs. But when price stability becomes an issue within a financial crisis, especially if there is rampant inflation, there will likely be waves of adoption from the countries that are worst hit as citizens there seek to hedge their wealth using an independent asset.

As you say, precious metals were the hedges of the past, however, I don't think that people will look to that as their first option should an inflationary crisis occur now as opposed to 40, 50 years ago as BTC essentially provides the same stability, except much more user friendly and convenient.

Bottom line is, I do expect bitcoin to outperform most traditional assets, including fiat cash, property, stocks, etc., if not see increased adoption and potentially even see some growth in the network.

[Ranly123]

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.

Cryptocurrency will be the diversity of people who want to scape financial crisis. Banks won't be able to cater big profits to our investments, but in crypto, we have chances to gain as much as 10x of what we invest. That is if we accept the risk cryptocurrency has.

[gowobonyok]

the global crisis will make many assets down, but not for crypto because crypto is not included. the effect might make many new investors come in when the crisis comes and make stocks fall and other assets such as gold also fall.

[goaldigger]

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 effect would be noticeable. Since there are a crisis, peoplevs investments would be going down all including stock markets and other markets but since cryptocurrency's value is not based on any other economic issues, i think its not included on the list.

[michellee]

I only think that people will moves to crypto if there is financial crisis happen in many countries because they see that crypto will be the best option to solve the financial problem. The crypto itself can help the financial especially the people financial, so they can have another source to solve the crisis. The rest of that, I don't know because we don't see a massive financial crisis happen.

[artbart]

the global crisis will make many assets down, but not for crypto because crypto is not included. the effect might make many new investors come in when the crisis comes and make stocks fall and other assets such as gold also fall.

I'd argue that. The only crypto users that may not have a relation with fiat are actually miners. All the other basically enter crypto market with FIAT. And that's a direct relation. If you'd get into a personal financial crisis, you'd probably simply had no cash to spare for crypto (except for countries like Venezuala, where crypto hedges your funds) and this would directly affect your and crypto relation.

[Gaff]

Financial crisis won't make any impact upon bitcoin in the short or in the long, as it is associated with technology only the issues that arise with the blocks will create some sort of congestion. The previous thing happened with the transaction fee, which further slowly got resolved. Crypto market is independent of other digital markets that don't function solely.

With my other side of opinion mate, bitcoin really is independent body of currency but I don't think those investors who've been a part of bitcoin's growing economy cannot feel the circumstances behind financial crisis of fiat. The investments of bitcoin was from fiat money, so if you find it hard for bitcoin price to increase; well financial crisis was mainly one factor to consider. If a person who wasn't able to let his asset gain a good returns for fiat investments, how much more if he chooses digital currency knowing that it was also more risky compared to how fiat cash works. The crisis really affected crypto, because if a person whose the potential asset holder won't earn good enough to fund crypto holding; it couldn't established strong financial foundation on crypto.

[BitHodler]

The whole thing could collapse and it would have no impact on btc, 1 btc = 1 btc

That's a very weak point and doesn't only apply to Bitcoin. My 100 gram gold bar is still a 100 gram gold bar, even if in the worst case scenario every economy and fiat currency in the world implodes.

I would even say that my gold bar will hold more real world value than Bitcoin where we are right now. Gold has nothing to prove, while Bitcoin on the other hand has everything to prove in terms of being a developed asset.

[Vaskiy]

With crypto it isn't assured, what we deny on is just like gambling. Financial crisis happen quite often, but the same won't have a big effect on bitcoin. With gold it has got a backed value, while crypto is all about trust. With this I believe bitcoin won't experience any collapse as it's market is independent from the world market.

[kodtycoon]

I think does't affect crypto well that's great crypto, not infected with the financial crisis people will turn to crypto. all believe that crypto is the future of digital money, but I don't want to be in a financial crisis everything is cruel and starving others