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

[lab rat hoax]

I think that if there is a financial crisis in the world, the crypto currencies will be positively affected by this crisis. because people will look for a safe harbor to protect their money against rising inflation and I think bitcoin is the best option for it. Stable coins are also a very important option to protect money from the bank.

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[TGD]

It will depend on how we will handle it now so we will be ready if ever unforeseen situations happen. We will not need to cashout our crypto in times that crisis occurs, or we have enough saved and earned through our trading or from our salaries. Crypto will be affected if many are not prepared making their financial status better now since their only option will be use their investment.

[Morguk]

When the crash comes I think crypto is going to fall with it, people will sell assets to pay their mortgage bill regardless of type. However I think once it has settled, once big money starts buying up assets cheap, crypto is going to be one of them!

People do not pay their mortgages "no matter what", in 2008 there was tens of thousands of people who got kicked out of their houses, but when a crisis comes and the financial world collapses even if the banks seize all of the houses at the first sign, they still have to sell them and they usually sell them for far cheaper which means they will have to both wait and also not make all of the money back.

It is really not an easy task and proof that people sometimes do not pay their mortgages, so they may not sell their bitcoins if it is not even remotely close to their mortgage. Sure if they have to have their cars repaired or something they might sell but a guy who has 100k mortgage debt do not have 100k worth bitcoins, they either have zero because they are in debt or they have a very tiny amount.

If you lose your job and the only way to pay your mortgage bill is by selling assets, you're going to do it. Whether it's a second car, some ETF's or Bitcoin.

[kentrolla]

Definitely people will sell their asset if the next crisis happens also people will lose trust and never will not take risk in the near future, thus things depend on the way how we handle.   Crashes happen due to volatile market and the power of big Whales make it happen to benefit them, economic crises is dependent upon the human spending and this triggers the economy down.

[SummerBliss]

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

Bitcoin and allied cryptocurrencies are considered at par with stock investment by many. In case of recession like 2008, cryptocurrencies would suffer similar blow like stock market. People will prefer to keep their monetary value in liquid form. Hence, like other investments and securities, cryptocurrencies' value would fall too. It is natural tendency of investors to follow conservative behaviour during recession, I don't see any reason why people would treat cryptocurrencies any different.

[South Park]

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. 

In my opinion this is what it is going to push adoption to insane levels in a short amount of time, a crisis will come, I do not know exactly when but it is inevitable and when it does and people finally realize that they have been deceived for a very long time they are going to do everything in their power to try to protect whatever wealth they have left, and while gold will without a doubt perform greatly during that scenario bitcoin is way more practical because you can move huge amounts of money in your smart phone and no one will ever know.

[boltz]

As soon as the next crisis will arrive and I'm sure its not far away as the charts point in that direction , we have inflation in most of the countries , price exploded to new highs we will see a BIG movement from FIAT to cryptocurrencies and Bitcoin might be the saver but what will happen with Tether?

Personally I don't see how Bitcoin could save anyone from the crisis and instead we could see bitcoin going again under 3k$ but lets hope this will not be the case as someone said in this forum , bitcoin has 0 volume and its kinda true , without blockchain , bitcoin has almost 0 value which is sad if you ask me considering the current price. Furthermore until crisis come just stack the bitcoin so we will all be ready when it comes.

[Heimer]

As soon as the next crisis will arrive and I'm sure its not far away as the charts point in that direction , we have inflation in most of the countries , price exploded to new highs we will see a BIG movement from FIAT to cryptocurrencies and Bitcoin might be the saver but what will happen with Tether?

Personally I don't see how Bitcoin could save anyone from the crisis and instead we could see bitcoin going again under 3k$ but lets hope this will not be the case as someone said in this forum , bitcoin has 0 volume and its kinda true , without blockchain , bitcoin has almost 0 value which is sad if you ask me considering the current price. Furthermore until crisis come just stack the bitcoin so we will all be ready when it comes.

I think that if next big recession happens then it will hit everything - even cryptocurrencies. There will be too much "blood on the streets" and majority of people will try to cash out as much as possible just like it happend in 08/09 financial crysis where indexes were down about 50% if I remember correctly

[ShooterXD]

This crisis will come much stronger than 2008, we can expect something booming, as many countries are already in recession, and when the crisis comes, it is better to run to the hills.
In my view, the only safe investment in this scenario would be gold and silver.
But that's just my opinion.

[ReiMomo]

This crisis will come much stronger than 2008, we can expect something booming, as many countries are already in recession, and when the crisis comes, it is better to run to the hills.
In my view, the only safe investment in this scenario would be gold and silver.
But that's just my opinion.

Well, I will oppose your personal opinion. Gold and silver are a physical asset it is different from digital assets which bitcoin or in general cryptocurrency. The market price of these metal assets has a slow price movement and I don't know you can easily get profit. Well, I do believe that in the next crisis bitcoin will still remain since it is already known to many people easy to hide your asset or even you as a user as well. Bitcoin price may go at a lower price but since the value of it is volatile we can guarantee that the value of it will rise up again no matter what crisis may come.

[Moiyah]

Let us step back and reminisce why Satoshi Nakamoto generate bitcoin, he created the btc in the time that it has a huge economic crisis because in that moment he is not pleased with the situation. You see, if not because of the economic crisis Satoshi Nakamoto will not think to create this kind of digital asset. In many ways still a kind of bad situation will create a good innovation that helps people. So being worried for the economic crisis has no room because btc is volatile, no one will know what happen next.

[alyssa85]

The following article is interesting. It's written by someone who spent a lot of time trashing bitcoin back in 2017 and 2018 but has now changed his mind:

https://www.bloombergquint.com/business/bitcoin-and-other-cryptocurrencies-are-better-than-gold

The more immediate issue for me is that the philosophical basis for fiat currencies has never been more fragile. No politician in the U.S. is talking about the need to shrink what are becoming very large budget deficits, with the possibility that they can only be financed directly by central banks. This is known as Modern Monetary Theory, or the printing of as much cash as a government needs to fund it's spending

I recommend reading the whole article - but it seems to me that the 2020 US Presidential election is going to be important for bitcoin. If someone like Elizabeth Warren becomes president, and there is modern monetary theory (printing money and just giving it out), a lot of investors will go into bitcoin. Even if Trump wins, he's likely to keep increasing deficits and trying to force the Fed to cut interest rates to weaken the dollar.

[Pab]

Any very strong sell off on markets will cause bitcoin dump
Bitcoin is emerging asset class.Those kind of assets are failing first.But after sell off there is very strong rebound
But many depends what will cause that crisis.High inflation in USA or dollar loosing his dominance will casue very strong run on both bitcoin and gold

[pugman]

I'm confident it'll shit the bed like everything else, perhaps even more intensely.

It's not a 'safe harbour'. It's a nutty bet to most people. You don't hang on to your nutty bet when you're having to sell your underpants to afford food.

If world finance blows up in 10 years I think there's a vastly better chance it may stand outside the turmoil but not if it happens in the next couple of years.

I really hope the financial and economic turmoil shows up to the world faster than what is expected. That is the only way people are going to figure out how horrible things have become, trillions of dollars are in debt, and businesses are dying as the clock ticks every single time, and there is hardly any measures taken to avert any kind of crisis. No one wants to believe that the world is in the most shittiest place it has ever been, and they have no qualms ignoring the issue. I keep saying this over and over again, but for some reason I keep overthinking about all of the possible outcomes that could be made out of the crisis that will hit us sooner or later, and no matter how many conclusions I come up with, the reality will be very different, and bitcoin will probably won't be near the scene either. People don't go waste their money on investments, or any kind of currency trade in times of crisis, they save it, or go through hell to get all the things they could possibly want to save themselves through the crisis. Don't expect something that Mr. Robot envisioned where people where paying in crypto during a financial crisis, cause it sure as hell won't go that way.

[Xxmodded]

Could you give the example about bitcoin crisis right now? I think bitcoin is fine just lower price only and no negative issues or news about bitcoin want to banned, you have trust your money in bitcoin and never trying for give bad information about bitcoin faced crisis without have proof to show us about bitcoin situation.

[South Park]

As soon as the next crisis will arrive and I'm sure its not far away as the charts point in that direction , we have inflation in most of the countries , price exploded to new highs we will see a BIG movement from FIAT to cryptocurrencies and Bitcoin might be the saver but what will happen with Tether?

Personally I don't see how Bitcoin could save anyone from the crisis and instead we could see bitcoin going again under 3k$ but lets hope this will not be the case as someone said in this forum , bitcoin has 0 volume and its kinda true , without blockchain , bitcoin has almost 0 value which is sad if you ask me considering the current price. Furthermore until crisis come just stack the bitcoin so we will all be ready when it comes.

Well if the crisis is as big as we imagine then there is no doubt that many stable coins will begin to fail but at that point those that are holding bitcoin are not going to want to receive fiat in exchange, remember people will want to get rid of their fiat and will look for a good currency that is not crashing and cannot be printed at will, so most likely you will not see bitcoin holders exchanging their bitcoin for fiat instead you will see them getting hard assets like gold or real estate for their bitcoin.

[Searing]

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

1 of 2 things.

1) IF Bitcoin and Crypto are simply propped up by people using the extra cash in good economic times to buy and HODL Bitcoin. Then as an experiment, it will fail IMHO.
A person under the above circumstances MAY wish to buy BTC and HODL, but due to an economic downturn will not. Well, damn that would be bad for BTC/Crypto.

2) If (1) is not in the cards above. Then IF Bitcoin and Crypto are used as I suspect, as a hedge against bad times and/or corrupt or inflationary governments to
help the world. Well, an economic downturn will only help BTC and Crypto. The store of value argument will be a fact and proven under such circumstances.

Chump or Champ. Time will tell I guess.

Brad

[rdluffy]

It's hard, almost impossible to predict what people will do in a moment of crisis, even I don't know what to do with my cryptos, i'm planning to hold, obviously, but I have to adjust my plan along with the situation

In my opinion, people will sell BTC, afraid to lose money and will hold fiat cash