Bitcoin and recession

[CBANX Ltd.]

In the blowing air of recession, people are finding a way out to secure their investment and many are reaching towards Bitcoin as a savior, so what you think? Does Bitcoin survive?

[figmentofmyass]

In the blowing air of recession, people are finding a way out to secure their investment and many are reaching towards Bitcoin as a savior, so what you think? Does Bitcoin survive?

bitcoin, a savior in a recession? i don't think so. recessions are times when investors unwind risky positions rather than add to them. "cash is king" becomes the norm. retail investors are pressured to sell their holdings (bitcoin or otherwise) due to layoffs and furloughs. so i definitely don't see the bitcoin market benefiting from slowing economies and crashing stock markets....just the opposite.

[Herbert2020]

it is not possible to predict bitcoin's behavior during a recession because bitcoin is still young and the market is very small and it can go either way. we may see a drop or we may see a gigantic rise in a short time due to FOMO buying. and there is enough reason for both scenarios to be possible. for example due to bitcoin still being volatile and risky it may not be as attractive as you think during a recession where everyone is looking for "safer" and "less volatile" investment. but at the same time since bitcoin has always been stand alone and not taking effects from other markets, so even if others like stocks,... are tanking during a recession bitcoin may rise and that can attract investors.

PS. your poll doesn't make any sense. reliable in what sense? a decentralized currency where you could continue to use under any circumstances? the answer is yes!

[mk4]

Does Bitcoin survive?

Of course. Why would bitcoin die in a recession? Worst case scenario is the prices will drop. But die? Nope.

Anyway, would bitcoin be a good option to store money in when a recession happens? No one really knows. Bitcoin hasn't went through a recession yet. While it makes sense to hold money into bitcoin(because bitcoin was birthed a year after the 2008 economic crisis), always take note that not everyone holding bitcoin knows what bitcoin is really for. There are a lot of speculators out there that would dump their bitcoin at short moment's notice due to fear when a recession happens.

[NeuroticFish]

Does Bitcoin survive?

Most probably. You have to remember that after all, Bitcoin is just software.
Maybe some miners will suffer, maybe some will shut down, but most probably that will happen in small steps, leaving no real bad effect on Bitcoin.

While it makes sense to hold money into bitcoin

Most probably some could use Bitcoin as a safe haven to hold (or hide!) money, but at the end I expect the bigger investors withdraw and use that fiat to buy falling businesses. It may make more sense economically. It depends though how volatile will Bitcoin price still be near the start of recession.

[Jet Cash]

One of the greatest advantages of Bitcoin is that it is a non-correlated asset. This means that price movements are not related to an underlying share or currency value. I believe that all investment portfolios should contain non-correlated assets to preserve wealth in times of economic uncertainty.

[mk4]

Most probably some could use Bitcoin as a safe haven to hold (or hide!) money, but at the end I expect the bigger investors withdraw and use that fiat to buy falling businesses. It may make more sense economically. It depends though how volatile will Bitcoin price still be near the start of recession.

It's actually not the big investors who I expect to dump their coins, I personally think it's mostly those who didn't know what they put their money into. It's safe to assume that there's still a lot of people that think bitcoin is just a get-rich-quick scheme.

One of the greatest advantages of Bitcoin is that it is a non-correlated asset. This means that price movements are not related to an underlying share or currency value. I believe that all investment portfolios should contain non-correlated assets to preserve wealth in times of economic uncertainty.

While I completely agree with you, it still doesn't automatically mean that bitcoin is going to perform well in a recession though.

[HeRetiK]

Bitcoin will definitely survive. Why should it not?

I'm a bit on the fence how Bitcoin will behave during a recession though.

As figmentofmyass already pointed out, recessions make market participants very weary and allergic to risky investments. People tend to stay in cash rather than in any investment vehicles, especially unproven ones. Gold is a bit of an exception in this regard, but I'm afraid that Bitcoin has yet to build the trust that gold already has.

However I do believe that it will also depend on where Bitcoin will be in its boom / bust cycle. If recession hits while Bitcoin is already down it might very well act as a worthwhile hedge due to its cheapness and cement its position as uncorrelated asset. The likeliness of this happening is anyone's guess though.

[yazher]

There's no other way If they want a higher percentage of their investment to survive,
Then pivoting to Bitcoin is a nice thing to do.
Bitcoin has a greater chance to reach that $13,000 mark again judging by the price
right now, it will not just fall at any moment.

[mk4]

There's no other way If they want a higher percentage of their investment to survive,

Gold as a hedge is a thing, and is definitely the smartest choice if you just want a hedge(and not to speculate); and is far more guaranteed to perform well in a recession than bitcoin. No doubt about that. We simply don't know how bitcoin will perform.

Bitcoin has a greater chance to reach that $13,000 mark again judging by the price
right now, it will not just fall at any moment.

No one knows that. And if you think that bitcoin can't simply and unpredictably "just fall at any moment", then you obviously haven't been into bitcoin for that long yet.

[samcrypto]

Market recession will come at no specific time but many people says its coming yet the market are still moving on the right track. With bitcoin, there's no big changes we are still down and there's no new big investors as of the moment so it means market recession is still a speculation. Maybe we can feel this one if the market recession begins, and that's the only time for bitcoin to go up high since new investors will coming in.

[TravelMug]

In the blowing air of recession, people are finding a way out to secure their investment and many are reaching towards Bitcoin as a savior, so what you think? Does Bitcoin survive?

We haven't seen any recession yet although there is a prediction that in the next year or so, the looming financial crisis will happened. With that said, we can't really tell if bitcoin could be a saviour as you have termed it. Gold on the other hand has been tested worst, (world wars) so people will still go for precious metal first before hedging their wealth on crypto's.

So it is still 50/50, in my opinion we really can't tell at this point because as I have said, we haven't cross the bridge yet and all we can do is speculate and see how it goes.

[Upgate]

People are just having a reason to start bitcoin and recession is far from their purpose of doing so.
Bitcoin is not affected by recession, inflation or deflation that much however we change/convert bitcoin into fund

[virasisog]

In the blowing air of recession, people are finding a way out to secure their investment and many are reaching towards Bitcoin as a savior, so what you think? Does Bitcoin survive?

Bitcoin is the exact opposite of any stable currency , so i think bitcoin will be the safest option of investors in times of recession.
As much as bitcoin being volatile ,it is more attractive because it is decentralized. As History told us as recession risk strikes bitcoin price topped up.

[Zicadis]

In the blowing air of recession, people are finding a way out to secure their investment and many are reaching towards Bitcoin as a savior, so what you think? Does Bitcoin survive?

As traditional financial instruments become increasingly volatile, people start turning towards more experimental assets like Bitcoin and other cryptocurrencies.

Conversely, when the traditional markets are stable, other higher risk assets are scarcely considered, since most people favor low risk, low reward, over high risk and high reward.

If you actually look at the purchasing power of USD over the last hundred years, it has fallen drastically. First due to counterfeiting, but also due to some of the anti-inflation measures that the government put out recently, like quantitative easing. Bitcoin's purchasing power has only gone up, and now exceeds all other currencies in this regard.

Even at its lowest point in the last few years, Bitcoin's PP has beaten practically every single other mode of investment at the same time.

[lobat999]

In the blowing air of recession, people are finding a way out to secure their investment and many are reaching towards Bitcoin as a savior, so what you think? Does Bitcoin survive?

The  fact that you've  already mentioned that people are reaching towards Bitcoin to diversify and secure their investments on the hint of a possible recession  means it has already answered your question positively! Economic recession is only temporary and eventually economy's will bounced back but if you add in the idea of a depression, I guess it will be a different story.

[NeuroticFish]

Most probably some could use Bitcoin as a safe haven to hold (or hide!) money, but at the end I expect the bigger investors withdraw and use that fiat to buy falling businesses. It may make more sense economically. It depends though how volatile will Bitcoin price still be near the start of recession.

It's actually not the big investors who I expect to dump their coins, I personally think it's mostly those who didn't know what they put their money into. It's safe to assume that there's still a lot of people that think bitcoin is just a get-rich-quick scheme.

You are right. Just I expect that the (sum of) money of all those try-to-get-rich-quick is no match for the really big whales, the ones that have bitcoins enough to buy entire businesses.
Also the small fishes don't affect the price, since they don't buy or sell all at once, while we've seen the whales doing that.

[YuginKadoya]

I guess we can not lump Cryptocurrency with the losses of GDP because it is not linked with the market products and other stuff that is not decentralized, So it is not incoherent with any GDP losses so it will not be affected with a sudden change with those things, but in my opinion, I guess we can not save the market recession with Bitcoin because it is not relevant to it, but I guess because of Recession many in the market are not considering cryptocurrency as another way to get what they lose in certain recession's and GDP losses.

[dothebeats]

Bitcoin would certainly be used as a hedge for people who know about its properties. It may not be as hit as it would be right now, but once everything around us crumbles, especially the stock markets and the real estate, gold and bitcoin would be the ones which people will cling to until the crash subsides. This is said in a non-biased way since well, we know how bitcoin performed for the past 10 years, and it will ultimately be the same thing that will happen should another recession/economic meltdown is to happen.

[akhjob]

In the blowing air of recession, people are finding a way out to secure their investment and many are reaching towards Bitcoin as a savior, so what you think?

Normally, volatile assets are avoided during a recession. As you can see Bitcoin is also a volatile asset, so I don't think that Bitcoin will attract new investors as some have suggested. However, I agree with Jet Cash that Bitcoin is a non-correlated asset and having a non-correlated asset to your portfolio is good.

Does Bitcoin survive?

Of course, it will.