Financial crisis 2.0 - What will happen to bitcoin in the next crisis?

[imstillthebest]

there are no bitcoins before so we cant compare the results that will be happening if there will be another financial crisis  . you once said that people will look for investments so bitcoin and other cryptos can be there best option because this assets are not connected to banks and other centnralize institutions that will be also affected by the crisis  .  as a result bitcoin will inflate or increase its value   . you also said that people  see crypto as risky . that was not new , even before crypto was released there are already people that are avoiding it but look at cryptos now , they are still healthy  .

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[zenstrive]

The last time financial crisis occur, oil and commodity prices shoot up to the moon buoyed by the feds bailout money.
Now another financial crisis is coming, oil and commodity prices are kinda rising..
I believe bitcoin will be the next target for financial speculators to hedge the next financial crisis looming.

[el kaka22]

There would be both type of people for sure. Of course, there will be people who put their money into gold type of stuff so that they could remove their risks from the stock market and be more safe however that doesn't mean everyone will do the same. Hell even when stocks went down in 2008 there was people like Warren Buffet who go hard into the stocks because he knew that stocks hit the rock bottom and from there if they are not gonna go bankrupt then they are going to make a profit in the long term, dude literally made billions of dollars in few years thanks to investing during 2008.

However, aside from those people there will be few who will put their money in bitcoin or any other crypto to make up for the losses and those will help us a ton in the end.

[romero121]

I wonder what will happen to bitcoin and the crypto market if there will be a financial crisis in the world (2008 style)

From one side people will probably look for 'safer' place to put their money in
on the other side, many people see crypto and bitcoin as a risky investment

I would like to hear the community opinions about what might happen to our market in a time of world economic crisis

What we experience this year is predicted to be much worse than the year 2008. People always wants their investment to grow, and if there isn't no big growth at least it should not end up losing. Considering this more investment from different sources got moved to gold. This got reflected with the big growth in the price of gold over the past few weeks.

Very few took into consideration the cryptocurrency, we haven't experienced big crash in the market of cryptocurrency. Years back too there was some form of economic recession experienced globally, by that time bitcoin didn't got dumped. This is why bitcoin growth will be mentioned unpredictable. If some financial crisis happen in the future more people will move towards cryptocurrency same as people at present moving towards gold.

[The Sceptical Chymist]

This is like the 3rd thread I've come across asking the same question--I'm not sure why people are thinking we're in for a financial crisis anytime soon (though it's possible).  The economy looks pretty strong right now, at least in my country.

As far as how bitcoin would fare if we had a 2008-type scenario tomorrow, I'll answer it in the same way I answered in the other threads: bitcoin is not a safe-haven asset and is not an investment people would start pumping money into if they're trying to keep their money safe.  In fact, it's probably the worst thing anyone could do in the midst of a crash.  I would expect precious metals to start moving upward, which they have been; and perhaps real estate prices to rise.

The other point I made previously is that bitcoin was in fact around during the entire 2008-2012 crisis and did very well.  On the other hand, stocks were also rebounding significantly right after the Dow sank to 68XX or whatever the low was in 2009.  Ultimately, I really don't know how bitcoin would weather another big recession, but I do know that investors tend to put their money in less volatile assets during those times and if I had to guess I'd say bitcoin might not fare very well.  I'm also hoping that the next recession isn't right around the corner, though I'm pretty sure we're due for one eventually.

[abhiseshakana]

The 2008 crisis was known as the subprime mortgage crisis in the United States. Debitors with bad portfolio loans are given housing loans in the United States. Actually it is not fair to other countries because the problem is in the United States, but the impact is on many countries. What is clear when the 2008 crisis the stock market fell and unemployment increased.

My prediction is that if the second 2008 crisis occurs, then Bitcoin might be used to become one of the solutions out of the crisis as has been done in several countries before (namely Greece, Cyprus, Venezuela and etc). For individuals, because the era is the era of financial technology, many traditional investors are looking at the digital market as a tool to make profits in times of crisis.

Usually, the hardest crisis impact is felt by countries or individuals who have a lot of debt or are poor. For wealthy individuals, they save quite a bit. I take a simple case, India is currently experiencing a recession, but imports of tertiary products to India are still high and continuous (imports of shell shells for crafts).

[fiulpro]

I think at the time of crisis Bitcoin will be most sought after since people can support everyone globally and indirectly one can earn and get through this .
This is really a perfect solution because we all know that in some countries it hits harder therefore the unfortunate countries can have. Support system.
People will switch to Bitcoins in the time of crisis is what I think.

[oxgroth]

Bitcoin is too volatily for correlation with standart market

[heliophorus]

Bitcoin is too volatily for correlation with standart market

You make the same errors as many people who correlate any commodity, assets to fiat currency.

Like in math, you can not measure something in conclusive way,
if You change with every measurement, your metric.
If we all agree, 1 feet is a specific distance, we all agree about a certain distance measured in 'feet'.

So how silly it is in fact to measure a commodity in dollar, as we know, the dollar is printed just like that by
the mint to cover debts ? And the same dollar is not bound to the gold standard.

One reason to have a gold standard was exactly to have at least a stable metric.

So those who state, bitcoin is too volatile, they do express bitcoin in terms of 'fiat', 'dollars'.

Bitcoin has and will be seen in close future as a stable metric. So it will be used as the base to state
the value of others assets, commodities, fiat currencies.

For those reasons:
a) bitcoin is neutral
b) bitcoin is without borders
c) bitcoin is limited in amount.
d) bitcoin is worldwide accepted.
e) bitcoin can not be generated just like that. It has to be mined.

So in times to come I recommend to have at least
physical gold and silver in your personal area, including Bitcoin on HARDWARE ledgers.

All the Best,

Jurgen E. G. Debo
Heliophorus
aka
realSatoshiN

[beerlover]

The scary part of these financial crisis is that people think bitcoin goes up in price but sadly the dollar goes down in value and that causes us to have less purchasing power with the money we make. Say you make 100k a year (not rich in USA but not poor neither) and then one day something like 2008 happens right?

Well, you keep on making 100k while everything else gets more expensive, next year they give you a small raise and you start to make 105k or 110k at best whereas the things you can buy with it are already closing to double the price. That is why I am afraid that bitcoin is not going up in price, it never did, maybe the first few years it might have but these late 2 years have been all dollar losing value, which is good for bitcoin holders but bad for the world.

[binhvo1505]

I wonder what will happen to bitcoin and the crypto market if there will be a financial crisis in the world (2008 style)

From one side people will probably look for 'safer' place to put their money in
on the other side, many people see crypto and bitcoin as a risky investment

I would like to hear the community opinions about what might happen to our market in a time of world economic crisis

I think people will sell the coins and use the money to buy gold. When a crisis or recession comes, people tend to buy more gold and hoard it for a few years. Because the price of gold is always stable and always increases when the economies of some big countries have problems.
As for bitcoin, I don't think so many investors believe it.
Although Bitcoin has a deflationary mechanism, its value is being decided by the market. And when the crisis came, you knew what was going to happen

[Cnut237]

Bitcoin was a response to the financial crisis last time around. If there is (when there is) another financial crisis, then crypto prices should in theory rise as crypto becomes a bit of a safe haven from fiat. However one big problem with this is that crypto prices aren't exactly stable themselves... so I would think a financial crisis might have some positive effect on crypto, but not a huge effect. Unless we have instances of currency collapse/hyperinflation, in which case it is still probably more likely that USD will be the default safe haven.

I do think that any new financial crisis won't really be a new thing, but more of a consequence of the last one not being sufficiently fixed. The problems of last time have been papered over, but there is still huge fundamental weakness. It is this fact - that governments are either unwilling or unable to fix the problems of fiat - that will in the end lead to crypto becoming the standard system.

[FanEagle]

It is at least worthy to keep your purchasing power the same. The trouble with all other stocks and gold and what not is that your money stays around the same (or make a bit of profit at most) and then you still lose purchasing power, whereas in bitcoin if the price of bitcoin goes up according to how much purchasing power you lost then you still can buy the same things, it is a temporary situation where you can't continue to make that much money but at least for a while your investments wouldn't lose value.

It is risky and something we shouldn't hope that would happen but at the end of the day if it is gonna happen anyway then I would rather stay on bitcoin than anything else, its a very risk free compared to all other investment options to be honest.

[South Park]

This will be a final test for BTC. So far, with failing economies of Venezuela and Argentina, the demand for BTC is rising. Both when speaking of BTC as a store of value (safe haven when stocks are crumbling) or a method of payment.

Anyway, if the new crisis will hit banks, we will see (as we had seen in Greece and Cyprus during the last one) daily withdrawal limit at a level so low, that trying to save your money by buying BTC may become impossible.

As well in case of some countries, you might be forced to pay "wallet tax", which is way easier to impose if there is KYC (something similar took place on bank accounts in Cyprus several years ago).

When a financial crisis gets out of hand most of the time banks do limit the amount of money you can withdraw to avoid a bank run, but the solution to this is easy do not store the majority of your money in bank institutions that treat your money as if it belonged to them or you could invest in assets that do well during a crisis before the crisis happens, gold and silver are the perfect example of this and there is a good chance that cryptocurrencies like bitcoin and ethereum could perform that task as well.

[FanEagle]

I think people will sell the coins and use the money to buy gold. When a crisis or recession comes, people tend to buy more gold and hoard it for a few years. Because the price of gold is always stable and always increases when the economies of some big countries have problems.
As for bitcoin, I don't think so many investors believe it.
Although Bitcoin has a deflationary mechanism, its value is being decided by the market. And when the crisis came, you knew what was going to happen

The reason why bitcoin will be better than gold when it comes to profit is that dollar will lose value, and when dollar loses value, it will make the fiat cost of purchasing one bitcoin to be very cheap, which people can accumulate ahead of when the financial crisis will be over, when the financial crisis is over, definitely the value of dollar will appreciate also, and this means there will be enough profit for those that purchases bitcoin during the financial crisis.

Gold is also good but, the increase in gold can never be as high as the increase that you will get from bitcoin, the volatility of bitcoin create a very huge gap for people to be able to make huge profit while gold does not give that chance. The only difference between bitcoin and the gold is that gold is less risky.

[Duzter]

If there happens a crisis, surely this will affect bitcoin. The reason I find is the usage, we can expect a much increased usage of bitcoin and other cryptocurrencies by that time. Now when we compared to the economy contributed by bitcoin and other cryptocurrencies what we have is very small. This is one of the big reason bitcoin not getting affected by these crisis.

Every year the adoption, usage, and as investment bitcoin get its market widened. So, when there is a huge contribution surely there will be some impact over bitcoin as well, which might get overcome gradually same as the what happens now.

[Kakmakr]

We only have to look at other examples like Zimbabwe and Venezuela to see what happens when things start to fall apart with their local economy and to see how the normal citizens flocked to Bitcoin investments to safeguard their wealth against hyperinflation and other economic problems that has a disastrous affect on the value of their wealth.

We see record high prices for bitcoins on their local exchanges, when they have problems with their local economy and if this happens with a global economy, you will see record high prices on all the major Bitcoin exchanges. 

[bitbunnny]

I don't think that Bitcoin will be directly affected by crysis since there is no link with traditional financial system. However, because of crysis demand for Bitcoin might increase because some people will try to find safe haven in it and thus the price might be affected. But this is just a theory and what exactly happens it's hard to tell.

[gantez]

The second, they will search and move their money into gold or else.

I think if that should happen, bitcoin will be preferred by people because at that time , because of demand, the price of bitcoin will increase. So saving your money in bitcoin will not only be a secured instrument but investment as it will keep appreciating.

[jrrsparkles]

I wonder what will happen to bitcoin and the crypto market if there will be a financial crisis in the world (2008 style)

From one side people will probably look for 'safer' place to put their money in
on the other side, many people see crypto and bitcoin as a risky investment

I would like to hear the community opinions about what might happen to our market in a time of world economic crisis

Price of bitcoin will get hit like all other assets in the world initially but later this may leads to the increase of adoption to next level since the economic crisis of 2008 create the need of bitcoin and the next stage will make it realize why we need to the most people with common knowledge.