Worrying Stock Market Drop and Fiat Devaluation

[arpon11]

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.

I do agree with this your views, more funds are going to flow into cryptocurrency market as the momentary crisis between yen and USD/others currencies now exist. The stock market has been having bad days for more than three days now, it is a sign that the devaluation is having it deals on the world money and capital. China is a large economy and the interest rate cutting in the USA and the devaluation of yen can only move institutional and micro traders and investors to hedge their holding for bitcoin as I have decided to do now.

[Kakmakr]

It is clear that Stock market performance are linked to a increase or decrease in the buying and selling of Crypto currencies. I think some of the investors and traders have a small portion of their portfolio invested in Crypto currencies and when the Stock market takes a dive, they just increase their investment in Crypto currencies to serve as a hedge against potential losses on the Stock market. <This is more informal (personal) trading and not institutional capital being used for this.> 

A day will come when institutional capital would be allowed to be invested in Bitcoin and then we will see a much bigger price swing, when the Stock market gets a beating. 

[South Park]

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.

While I have no doubt that gold will perform well in the case of a crisis, the performance of bitcoin will depend on how big the crisis really is, if governments around the world begin to confiscate gold from their legitimate owners you can be sure that bitcoin will do really well since people will try to buy this currency that does not link your holdings to your identity and that you can carry with you all the time in a piece of paper or in the back of your mind.

[7788bitcoin]

if governments around the world begin to confiscate gold from their legitimate owners

Why would any elected government confiscate gold from their legitimate owners, even if the country is struggling economically they cannot force their citizens to hand over their investment in gold.
Even with gold investment the best form of investment is Sovereign Gold Bond rather than buying physical gold which is hard to secure and move.
stock market is tumbling because of the trade wars and we are seeing a price rise in gold because of that and bitcoin is a good investment as well.

[Ridwan Fauzi]

Indeed the trade war between US and China has gave yuan was overwhelmed behind the incident but I don't have any idea to say that most stock investors (especially) will turn their money into cryptocurrencies. They won't take another risk to store their money into cryptocurrencies because the majority of some countries still remain same to ignore bitcoin in their country and that is an effect the investor still afraid to store their money on it.

Also, you have to know the negative news or some information that still revolve in some media when some newbies searching for an understanding how to invest in bitcoin because they will find first the negative experience from some investor who experienced a huge lost when investing in bitcoin. Moreover if we talk about the price movement of bitcoin, it feels they will be difficult to digest any price movements that occur. But, for those investors who know bitcoin before, I believe they will store a half of their money into bitcoin because there is some factors who will make bitcoin goes to increase especially in the next year.

[Lucius]

It is clear that Stock market performance are linked to a increase or decrease in the buying and selling of Crypto currencies.

But did you see any price increase of Bitcoin after stock market lost $1.4 trillion in only 4 days of trading? Only gold is recorded the highest level in the last 6 years, and we can see a possible connection here with stocks and gold market. Bitcoin is still big risk for stock traders, and we can safely say that they do not fully understand it, and in situation like this they always choose gold.

In case of institutional capital we'll probably have to wait approval of ETF, and it's still too early for that.

[Schirer]

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 most logical path would be that stocks will fail, they will fail spectaculary. They are overly valuated, as you pointed out there was a drop and it was because of FEDs rate policies. Stocks can not go up forever, money is not infinite  thing.

Then when they fail lets hope that some of the money will go in to cryptos !

[oxgroth]

Are market drop will affect crypto prices, guys? What do you think?

[Lanatsa]

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.

Same insights! People from stocks wont really consider out Bitcoin easily or do make it as an option or make is as a safe haven when theres crisis.

We cant conclude if such money will flow to cryptocurrency or would go into other option,this is why I don't expect too much for it to happen and also I don't see
any correlation among the two yet this is two different markets.

[FanEagle]

I guess considering companies in USA hasn't been making as much profits as they used to because of the trade wars going on it is only expected that it will go even worse. Maybe not right away because they are waiting for 2020 but if trump gets reelected (I give it a low chance but I gave it a low chance first time as well so who knows) then the companies will realize they are stuck with him for another 4 years and there is no point on postponing the bad results which will make DOW go down even more.

These companies are usually the ones that deal with china for manufacturing, even the biggest company in the world Apple who reached 1 trillion dollar valuation at some point can't really continue their operations with china without getting hit with some costs so it is gonna go worse and worse.

[LeGaulois]

High exposure to trade wars is making investors afraid, not only in the US. They are completely in doubt and/or in panic for some. Did you notice how central banks and co. are trying to save funds through safe havens? It is not something new, it has been several months, but recently it has started to become more and more precise.

I don't want to mean the Apocalypse is around but a recession is becoming more and more possible. Look the interest rate cuts worldwide, Treasuries' performance so bad, ect

Why would any elected government confiscate gold from their legitimate owners, even if the country is struggling economically they cannot force their citizens to hand over their investment in gold.

Some countries can and have their own law. The US tried before

[RealMalatesta]

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

I think that many investors are already doing that because we can see how fast bitcoin has grown to the extent of outgrowing the stock market based on the last data that is available to us, so I would not really be surprised if the stock market plunged lower than this now.

Digital currency such as bitcoin is really where many people are looking into right now, and it would have really grown more than what it is now if there was no issue of scamming in cryptocurrency, but scam has really discouraged some investors and has also withdrawn some of them from the market, otherwise, the way bitcoin was seriously growing from that 2017, if it had continued that was, maybe the government too would have even changes their reserve to bitcoin already.

[audaciousbeing]

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?

While we might see some relationship and people drawing up some connection between fiat and crypto and the effect in whatever the outcome would be, I personally don't see the effect being that significant when the price of crypto was hovering around the $5kish fiat market and its supporters where mostly doing well and this temporary succour that managers of the economies are putting in place to ensure the effect on their own part is adequately taken care off does not have any say in what the market decides what will be the price of crypto.

[South Park]

if governments around the world begin to confiscate gold from their legitimate owners

Why would any elected government confiscate gold from their legitimate owners, even if the country is struggling economically they cannot force their citizens to hand over their investment in gold.
Even with gold investment the best form of investment is Sovereign Gold Bond rather than buying physical gold which is hard to secure and move.
stock market is tumbling because of the trade wars and we are seeing a price rise in gold because of that and bitcoin is a good investment as well.

I do not know about other countries but the US government made holding gold illegal during the 30's, look for executive order 6102, and it was not repealed until the 70's, so if it has happened before I do not see why it could not happen again, besides there are some people that speculate that governments around the world have been selling their gold to keep the price suppressed and if that is true then governments will have an even greater incentive to make holding gold illegal in the future since the fiat system cannot last forever.

[samcrypto]

Are market drop will affect crypto prices, guys? What do you think?

Yes, it can affect the price of crypto especially if the stock investors shift to cryptocurrency and put their money on cryptomarket. Many speculation about the US Recession and it looks like many market will experience this one, so a wise investors will go now for bitcoin and save their money from losing. This is alarming already, the drop is not that small I hope cryptocurrency will be the safe haven for us.

[pugman]

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

Maybe? OH ITS COMING ALRIGHT. Its definitely coming. The entire planet is facing through a shitshow. Cannot even elaborate on how bad things are. Hong-kong protests, India-Pakistan fight for a state called Kashmir, US mass shootings(249 this year alone), Venezuela crisis, Zimbabwe crisis, the Brexit crap, the US student debt(trillions of dollars),global warming,etc etc. Like I don't even understand how people think they are gonna get through all of this, when they get offended when someone says fuck you in the face.

If things don't get taken care of as soon as possible, we are going to see a repeat of what happened in the early 2000s, but this time only a zillion fucking times worse. The markets are gonna crash, be it stock, crypto, real estate or any fucking investment based market. People are already fucking killing each other for slices of bread in the Africa and some parts of Europe-Asia. There is debt everywhere.

All of this is inter-related, the stock market drop, the devaluation of fiat, people are saving up money as when they can just so that they can avert the crisis when it knocks the door. People need to get this in their mind that they are gonna get fucked if they dont come together and deal with shit together.

[bitmover]

Maybe? OH ITS COMING ALRIGHT. Its definitely coming. The entire planet is facing through a shitshow. Cannot even elaborate on how bad things are. Hong-kong protests, India-Pakistan fight for a state called Kashmir, US mass shootings(249 this year alone)

This maybe unrelated, but I had to share. Governments are trying to profit from mass shootings!

Like I don't even understand how people think they are gonna get through all of this, when they get offended when someone says fuck you in the face.

If things don't get taken care of as soon as possible, we are going to see a repeat of what happened in the early 2000s, but this time only a zillion fucking times worse.
The markets are gonna crash, be it stock, crypto, real estate or any fucking investment based market. People are already fucking killing each other for slices of bread in the Africa and some parts of Europe-Asia. There is debt everywhere.

Now we have Bitcoin. We can protect ourselves from this.
I believe this debt everywhere is the main problem. There is a global financial pyramid scheme, which always explode from time to time. But bitcoin is different.

My idea is to save some money now, so I can buy all cheap soon, when it all crashes. And do not sell many of my bitcoins, even if the whole stock market is with a huge discount.

[pugman]

This maybe unrelated, but I had to share. Governments are trying to profit from mass shootings!

Its less related to profit, and more related to how incapable they are of protecting their country from mass shootings. Like, Walmart removed all their video games that "condoned" violence, but they still had all theirs guns on their stores.

Now we have Bitcoin. We can protect ourselves from this.
I believe this debt everywhere is the main problem. There is a global financial pyramid scheme, which always explode from time to time. But bitcoin is different.

My idea is to save some money now, so I can buy all cheap soon, when it all crashes. And do not sell many of my bitcoins, even if the whole stock market is with a huge discount.

Bitcoin isn't going to protect ourselves from shit, maybe on a short term basis, maybe sure. That's definitely things work or intended to work.

The only thing that is going to protect us from another bubble burst->re-great Depression, is not repeating the same mistakes, figuring the shit out on how they countries and their people are going to get through if the Venezuela/Zimbabwe/Sudan eradication becomes a reality in their own country.

[The Sceptical Chymist]

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.

Funny, I just checked the gold & silver markets yesterday for the first time in a couple of months at least, and I was surprised that silver had hit $17/ounce and gold $1500/ounce.  It would seem to me that investors are starting to seek safe haven assets, but I'm not exactly sure what the reason for that is.  I also haven't been following the stock market lately and wasn't aware that there was a big dip.  I suppose that could have been the reason for the jump in metals, but I don't know what the timing was.

Has there ever been a correlation established between the stock market and crypto?  I've never read any data about that, but I suspect that crypto is a bit too young to be drawing any conclusions about it.  There's been a bull market in stocks for quite a few years now and during that time bitcoin has peaked and crashed twice.  Crypto is definitely not a safe haven asset, so I wouldn't expect there to be an inverse relationship--but I'm not sure there's a relationship at all.

[Reid]

The questions are, where is the money?
Why are they failing now? Why now?
Is crypto currency really affected that much?
What currency is getting stronger because of this falls that are happening?

Those are the questions that needs deep analysis before we could even get the answer.
Bitcoin is down, but not that deep yet. I guess we are really not that much affected. Or? Are they switching to bitcoin now and the value keeps on fighting because of that even with the fall of the stock market?