Worrying Stock Market Drop and Fiat Devaluation

[mrquackquack]

With the sudden 700+ Point plunge of the Dow Jones and China's sudden devaluation of the Yuan what are some aspects of interest do you have that might reflect upon the current and the future of the Digital Currency Market?

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[bitmover]

Maybe a global crisis is coming. Bitcoin never saw one.

Stock market drop may bring more money to cryptocurrency market, as it may be seen as a non correlate asset, which may work as a hedge against this crisis.

Pure especulation but it makes sense, and it may lead cryptocurrency holders to great profit.

[BitHodler]

Stock market drop may bring more money to cryptocurrency market, as it may be seen as a non correlate asset, which may work as a hedge against this crisis.

I hope you're right but I have my doubts. A large part of the capital within the stock market can be categorized as risk capital, which I think also applies to Bitcoin from the perspective of an institution or legacy investor.

Gold will serve its purpose as safe haven much better than Bitcoin will simply because of how speculative this market still is. Bitcoin definitely needs more years of maturation to grow on people as being a non correlated asset.

We have gone up simultaneously with gold in the past, have gone up while gold went down, have gone down while gold went up, and so forth. I think the current correlation between Bitcoin and gold is just coincidence.

[STT]

sudden 700+ Point plunge of the Dow Jones

700 is not the big percentage it might have been in the past.  I dont consider it a great fall or especially disturbing.    A fall after a long period of rises is at least partly down to profit taking, it has to develop into a long trend and typically pass 20% to be of much concern.    FIAT having no fixed value is of concern mostly in countries unable to justify trade balance

[Baofeng]

With the sudden 700+ Point plunge of the Dow Jones and China's sudden devaluation of the Yuan what are some aspects of interest do you have that might reflect upon the current and the future of the Digital Currency Market?

Well, there was an expectation that with the stock market going down, and China's Yuan devaluation and the escalating trade wars between China and US, people might go and flock to crypto market to hedge their funds. Specially when the price of bitcoin suddenly went up in the last two weeks or so and trying to breach that $12k mental barrier. However, investors may have other options like precious metal. So we will see, if the price goes to $15 next month then it's possible that stock investors are shifting their funds to bitcoin as safe haven.

[Periodik]

With the sudden 700+ Point plunge of the Dow Jones and China's sudden devaluation of the Yuan what are some aspects of interest do you have that might reflect upon the current and the future of the Digital Currency Market?

Well, experts, at least those who are open to Bitcoin, have considered these developments as generally positive for the crypto market. For one, we are not affected by all these, with the values of crypto or Bitcoin moving quite independently from these conventional markets. And since investors will have to find a place where they could safely park their investments during these turbulent times, Bitcoin or crypto must be on top of their list. 

[ethereumhunter]

Sell your stock after raised profit only 10% or 5% and it enough for take back your money and invest on another altcoin kinds, doing my tips if not you lost chance get profit and lost your money.

Yeah, that will be a good solution to your money so you can invest in cryptocurrency and in the cryptocurrency, you can choose so many altcoins that will grow your money in another investment, and you can be able to make another money too. Soon, every people will open their eyes about the cryptocurrency, and they will realize that they can invest in cryptocurrency too besides of stock.

[avikz]

With the sudden 700+ Point plunge of the Dow Jones and China's sudden devaluation of the Yuan what are some aspects of interest do you have that might reflect upon the current and the future of the Digital Currency Market?

There are major impacts in the crypto markets, I believe! Also there are major impacts on the precious metals market like Gold and Silver.because we are seeing an economic slowdown since the beginning of 2019 and traditional investors are slowly moving their money into precious metals like Gold and Silver For example, look at the below chart,



It shows the price of Gold per Kg since last 6 months and the trend is very clear. We will get similar kind of trend in the crypto market if we analyse because the mood for bitcoin and other cryptos are usually upward since 2019 beginning. But traditional investors will usually stay away from the crypto market because of the fluctuation in the price.

So the interest area for digital market is somewhat different when we compare it to the global slowdown or the devaluation of the currencies. In such scenario, people invest in gold because of capital protection. But at the same time, people invest in cryptos to make some aggressive profit who knows how to ride the tide! The same is happening here!

Aggressive investor + willingness to make some quick money amid global slowdown = Crypto investment flowing in

[adaseb]

This has been discussed many times and since BTC was never active thru a global recession (it was actually created as a result of a recession) its hard to tell what will happen.

Yes you are correct that many will be buying Gold and they might also buy Bitcoin to hedge their money but keep in mind that generally in a recession people are risk-off. What risk-off means is that they buy stocks, indicies, which are a safe haven but produce low % rate of returns. So people might buy metals such as Gold and they might buy blue chip stocks instead of penny stocks. Bitcoin is considered a risk-on investment due to its volatility and might turn off most investors.

Especially since it took around a year for it to peak $20K and go down all the way to $3K. Many rather hold stocks thru a recession in that case.

[coiningz]

New financical crisis is coming unfortunately. And all of us should be ready for it. I dont sure that crypto is the best variant it may be affected too

[JohnBitCo]

With the sudden 700+ Point plunge of the Dow Jones and China's sudden devaluation of the Yuan what are some aspects of interest do you have that might reflect upon the current and the future of the Digital Currency Market?

The answer is very simple.
What do you do when the stock market is crashing and fiat currency is devalued with every passing day. You will invest in something which is stable and constantly grwoing. Bitcoin is the best investment. Its time Chinese sell the stocks and sell their Yuan to grab the bitcoins.

[Lucius]

It is bad times for stocks and fiat, but did you see any effect on Bitcoin price because of that? In my opinion the reason is very simple, people who lost money on stocks still consider Bitcoin a risky investment, and some of them just don't understand how Bitcoin is working, how and where to buy or how to keep it safe. Otherwise, they would not miss the opportunity to invest in something that is start 10 years ago, with no value at all, and today is worth over $10k per coin.

In time when we can read how Bitcoin is very risky investment, and that people should not invest in things like that - stock market is lost 1.4 trillion in just 4 days of trading which is 7 times more then Bitcoin market cap or 4 times more then whole cryptocurrency market cap.

So where does money end up in a time like this?

The monster bloodbath in stocks sparked a major flight-to-safety move. The 10-year Treasury yield plunged below 1.74% on Monday, its lowest level since November 2016 as investors flooded into Treasurys. In the meantime, gold hit its highest level since 2013.

[1Referee]

New financical crisis is coming unfortunately. And all of us should be ready for it. I dont sure that crypto is the best variant it may be affected too

It has been coming for years now according to people. It's impossible to know beforehand how long it will take before the house of cards collapses. It could easily take another 5-10 years with all the stimulations going on. The thing that we do know is that the longer they buy time with low interest rates and easing, the harder the world economy will be hit when the crisis finally commences.

It's going to be an interesting stress test for Bitcoin because we can't confidently assert that Bitcoin will benefit when everything goes down at the same time. Gold might not provide any help either. It may sound weird and a bit contradicting, but I do believe that the us dollar will be one of the more in-demand assets because of our bills, daily spending, taxes, debts, etc.

[Findingnemo]

With the sudden 700+ Point plunge of the Dow Jones and China's sudden devaluation of the Yuan what are some aspects of interest do you have that might reflect upon the current and the future of the Digital Currency Market?

I though deflation will occur on most of the countries due to price fall on USD value in the recent times and also they were printing more USD than actual rate which I read on an article on my local magazine.But 700 points is not huge to be considered as crisis this might due to some problem on China's economy surely it will get stable soon.

[hugeblack]

There is much evidence that the global financial crisis is possible, but currency fluctuations do not mean the flow of money to cryptocurrencies.
Many investments are still individual and the lack of organizational clarity makes institutional money unwilling to gamble on these future investments.
So the simple answer: Yes with very limited effect.

[buwaytress]

With the sudden 700+ Point plunge of the Dow Jones and China's sudden devaluation of the Yuan what are some aspects of interest do you have that might reflect upon the current and the future of the Digital Currency Market?

Make up your mind. Is a global economic crisis -- and this is generally reflected by both stock markets everywhere shedding points, plus currency devaluations -- bad or good for Bitcoin?

So funny to see analysts talk up the potential for Bitcoin when traditional vehicles fail, and then next to say that the negative sentiment is spilling over to digital assets.

Bitcoin was born from the ashes of a shattered global financial and banking system. I'm sure it could do with a few more batterings.

[joniboini]

If crypto also did not perform well, then i think people will move to gold again and prices of gold will be sky rocketing at that time.

Even if crypto performs really good, I think the majority of the money will still go to gold. There is still no fundamental changes and gold is still being perceived as the safest investment out there. Real estate investment might give better returns but the barrier of entry is way too big. Most people would buy gold and then forget about it, no anxiety whatsoever.

[el kaka22]

With the sudden 700+ Point plunge of the Dow Jones and China's sudden devaluation of the Yuan what are some aspects of interest do you have that might reflect upon the current and the future of the Digital Currency Market?

It is really weird that whole world economy is going down all together these days, I mean financial world is trying to handle and not collapse all together but right now its really not looking good because one day eventually they will have to let go and then we will have a huge crisis.

I would totally understand if american economy is bad or Chinese economy is bad whatever but right now USA, Europe, Asia all are looking bad, middle east is the only one handling well because they have shit ton of oil and that allows them to make a ton of money and they use that money to invest into many things, even though things they invest into will not make a lot of money because of the crisis it is still a ton of money combined going into middle east which makes them the safest bet right now.

[dothebeats]

With the Dow managing to sustain a decade of good run in its hands without a single hint of a massive correction, I'm not even worried on what might happen in the stock market within the next few years or so. A lot of seasoned economists are saying that we are long overdue for a correction and we're heading towards a similar recession like the one that we had in 2008. I'd like to believe on that knowing that the derivatives market is insanely overvalued and needs to somewhat come down. Perhaps by then crypto would be a good hedge and investment when all comes down to the rabbit hole during the recession, and that is already expected by a lot of people bullish or not for crypto.

[Upgate]

In the future we are Likely to see investors crossing over from stocks to digital currency. let's not push our luck yet the stock market  has history of plummeting and fast rising.
Currency devaluation comes in to service as a way countries check mate their economy to balance with the present time. But when it happens spontaneously then there is an economical hazard