What they mean whenever they say Bitcoin was born in the wake of 2008 recession?

[yurgee]

Another wave of recession is currently building up, analysts have predicted that the upcoming recession will be more than what was witnessed in 2008. without saying, it is clear that the Bitcoin price movement largely mirrors the United States stock price movement. This implies that a heavy fall in the stock market has a high propensity to plunge the price of Bitcoin.

This further implies that, when recession kicks in, those running away from the stock market will possibly not see Bitcoin as an option. What then is the purpose of Bitcoin whenever they say "Bitcoin was born in the wake of the 2008 recession" or is it just a mere saying?

[Upgrade00]

What then is the purpose of Bitcoin whenever they say "Bitcoin was born in the wake of the 2008 recession" or is it just a mere saying?

Bitcoin literally was "born in the aftermath of the 2009 recession". The signs of a recession were present in 2008, but it wasn't until 2009 that it really hit, and this was the year when the genesis Bitcoin block was mined.
Some people believe this was a statement, that Bitcoin was meant to address the failings of the banking sector. Some others took this to mean that Bitcoin could somehow prevent a recession.

The true intentions of Satoshi Nakamoto are not public, but the white paper suggests that; it is to be a trustless payment system which connects transactors directly, without the need for a third party. With no mention of it replacing the current financial system.

without saying, it is clear that the Bitcoin price movement largely mirrors the United States stock price movement.

There are also varied opinions on this, as some people believe that they are uncorrelated. I personally don't think there is enough data to show that Bitcoin mirrors the price of U.S. stocks.
Usually, the current global economic situation would influence people's decisions to invest in assets like Bitcoin. So a recession would likely reduce the number of investments, while a boom will leave people with more spare cash to gamble with. This is not peculiar to bitcoin.

[Harlot]

It's a fact not a "mere saying" Bitcoin was literally created after the 2008 recession but it doesn't imply anything about it being a hedge in the next recession. The ones who have stated that Bitcoin can be some kind of safe haven in times like this are just expressing their opinion when it comes to it having a huge upside compared to stocks or other assets during the recession. But the thing is Bitcoin's price movement was not yet tested in a recession and we can't really say that this will be some kind of hedge if we haven't seen its performance when all the markets are affected by a recession.

[BrewMaster]

Bitcoin literally was "born in the aftermath of the 2009 recession".

started, yes but the language suggests that bitcoin is created becaue of the recession which i believe is wrong because Satoshi started working on bitcoin years before the release which means the recession happened after he started working on bitcoin.

without saying, it is clear that the Bitcoin price movement largely mirrors the United States stock price movement.

no it does not. this is nothing except a brand new FUD that is only about 4 to 6 months old.

[palle11]

started, yes but the language suggests that bitcoin is created becaue of the recession which i believe is wrong because Satoshi started working on bitcoin years before the release which means the recession happened after he started working on bitcoin.

I would just think and believe it happened as a coincidence and not really born because of the recession. A need for digital currency was to be fulfilled and the technology of bitcoin and blockchain was to fulfill that need.

[Ucy]

If that does really happens, it's probably because the system has somehow become connected to or controlled by what it seeks to be free from.
It should also have a growing/thriving decentralized and autonomous ecosystem...that will certainly become a good alternative when a serious crisis hits the centralized ones.
By the way, what should matter more is better alternatives to the centralized system and not really price. Price will fair better here long-term if it's well decentralized

[bittraffic]

Satoshi I think had already tried to solve the double-spending before the recession started. Cryptographers had been looking for solution to that problem for a long time and when satoshi solved it, he just waited for the right time and I guess he found the right time where people are looking for solutions to stop the recession. The timing seems to be perfect for Satoshi to introduce Blockchain and Bitcoin.

[Darker45]

without saying, it is clear that the Bitcoin price movement largely mirrors the United States stock price movement.

I don't think this is established.

What then is the purpose of Bitcoin whenever they say "Bitcoin was born in the wake of the 2008 recession" or is it just a mere saying?

Does it have to have a purpose? It is not even a saying either.

It so happened that when Satoshi Nakamoto launched the Bitcoin network, it was around the time of The Great Recession. However, I think the timing is purely coincidental. I don't think Satoshi created or launched Bitcoin as a reaction to it.

After all, the purpose of Bitcoin wasn't really to avoid recession or anything like that. The purpose was basically to generate a trustless electronic system of peer-to-peer transactions.

[dothebeats]

It's just a coincidence that bitcoin was born when the recession of 2008-2009 is on its peak. I don't know why people are overanalyzing this fact, although I can understand since Satoshi's original blog post regarding bitcoin hinted it as a possible tool against such kinds of economic failure and to combat oppressive banking schemes. People later on tried to brand bitcoin as something mythical and like a 'gift from above' since it goes against the norms of banking and the economy that we are so used with.

[semobo]

Another wave of recession is currently building up, analysts have predicted that the upcoming recession will be more than what was witnessed in 2008. without saying, it is clear that the Bitcoin price movement largely mirrors the United States stock price movement. This implies that a heavy fall in the stock market has a high propensity to plunge the price of Bitcoin.

This further implies that, when recession kicks in, those running away from the stock market will possibly not see Bitcoin as an option. What then is the purpose of Bitcoin whenever they say "Bitcoin was born in the wake of the 2008 recession" or is it just a mere saying?

Stock movement has effect on bitcoin price movement for now but if there is a recession kicks in then stocks and cryptos gets crashed then surely cryptos will recover much faster than stocks which will make people to believe that bitcoin was created to save themselves from financial crisis in future.But it doesn't meant bitcoin price will be in green when the whole world is facing economical and pandemic crisis.

[bitbunnny]

It's just a coincidence that bitcoin was born when the recession of 2008-2009 is on its peak. I don't know why people are overanalyzing this fact, although I can understand since Satoshi's original blog post regarding bitcoin hinted it as a possible tool against such kinds of economic failure and to combat oppressive banking schemes. People later on tried to brand bitcoin as something mythical and like a 'gift from above' since it goes against the norms of banking and the economy that we are so used with.

I'm not so convinced that it was coincidence. That was the period of recession.and people were tired of banks and circle of crisis they cause. People wanted alternative, something new in financial world and to my opinion part of motivation to create Bitcoin was exactly that situation.
Of course, Bitcoin is not the answer to all finances problems and can't replace fiat money or banks although some people see it like that.

[yurgee]

What then is the purpose of Bitcoin whenever they say "Bitcoin was born in the wake of the 2008 recession" or is it just a mere saying?

Does it have to have a purpose? It is not even a saying either.

It so happened that when Satoshi Nakamoto launched the Bitcoin network, it was around the time of The Great Recession. However, I think the timing is purely coincidental. I don't think Satoshi created or launched Bitcoin as a reaction to it.

[/quote]

When Bitcoin fanatics quote that line, they usually paint it to look like Bitcoin was born as a solution to future recessions. It's easy to spot this notions in most articles promoting Bitcoin.

[Petryakov]

In the Genesis block of Bitcoin, there is a reference to The London Times cover story “Chancellor on Brink of Second Bailout for Banks.” For that reason, many believe that Bitcoin was created in response to the global financial crisis of 2008 and in particular to the monetary policy of developed countries.

It's likely not the crisis itself that is addressed by Satoshi's invention but rather CB's solutions to such situations, which always help the elite overcome crises not only without losses, but with gains in their wealth. According to the Bank of England, its own quantitative easing measures increased the wealth of the richest 5% of households by 40%.

[exstasie]

without saying, it is clear that the Bitcoin price movement largely mirrors the United States stock price movement.

no it does not. this is nothing except a brand new FUD that is only about 4 to 6 months old.

BTCUSD has loosely followed the US stock market ever since price discovery began. They've both been in strong, long term bull markets for the decade preceding the 2020 crash. That's probably not a coincidence. The long term correlation is just as apparent as the short term one.

I don't see why it would be considered FUD either. If you want the price of BTC to appreciate, positive correlation with stocks is historically a very good thing. The Fed's gifts to equities are also a gift to BTC.

[goaldigger]

started, yes but the language suggests that bitcoin is created becaue of the recession which i believe is wrong because Satoshi started working on bitcoin years before the release which means the recession happened after he started working on bitcoin.

I would just think and believe it happened as a coincidence and not really born because of the recession. A need for digital currency was to be fulfilled and the technology of bitcoin and blockchain was to fulfill that need.

This coincidence make bitcoin more perfect to the eyes of the new investors since the recession made a huge impact in the market and people are looking for the alternative. Though the price of bitcoin that time is still low and the adoption is still not happening during and after the recession.

Many analyst believe that a bigger recession is happening right now, many businesses cutting their expenses and most of them are stopping their operation for good, many are losing jobs. If bitcoin will become the best alternative, then expect a big bull run.

[beerlover]

Well, it was never intend to be profiting thing, do you really think that when bitcoin was created, the idea would be "buy bitcoins at lower dollar value and sell it at higher dollar value so that you would have more dollars" ? Do you really think that you would create a currency with the idea of making more of another currency? Of course not.

When people say bitcoin was created because of 2008, they mean that governments gave bail outs to banks to keep them open while punishing absolutely no one and causing hundreds of millions of people worldwide being at an unfair disadvantage because they still need to pay their mortgage while banks didn't had to pay for their own debts. So bitcoin was created in order to create a decentralized and fair situation and not to make more money.

[TIDOVEE]

That 2008 recession, Bitcoin came to time and was like a savior or bail out to many, the same thing in 2016/17 in my country there was also thick recession, many Ponzi scheme rose up, Bitcoin still came out very active then and bailed us out even though many could not believe in it because they thought it was also a Ponzi scheme. I felt the initial plan of creating Bitcoin in a decentralized nature is to serve as bail out and complement the world currency.

[oHnK]

It is clear that the Bitcoin price movement largely mirrors the United States stock price movement. This implies that a heavy fall in the stock market has a high propensity to plunge the price of Bitcoin.

Although I'm still a newbie in bitcoin discussion. I don't think so that the Bitcoin price plunge mirrors the United States stock price movement. The recession economy has been the cause of the bitcoin price plunge. Everyone who saved their money in bitcoin as investing and then the recession has occurred, think that bitcoin is not safe too. This is the reason why the bitcoin price plunge.

This further implies that, when recession kicks in, those running away from the stock market will possibly not see Bitcoin as an option. What then is the purpose of Bitcoin whenever they say "Bitcoin was born in the wake of the 2008 recession" or is it just a mere saying?

Everyone has their own opinion. There will be many possibilities for what they said. As long as I learn, maybe they believe in the correlation of bitcoin price with US Stock price but on another side there're some people believe that there's no correlation of it.

[Wexnident]

It's a mere saying tbh. It was just a coincidence imo that Bitcoin was born after the recession of 2008. That, or Satoshi intentionally did it to create more impact when Bitcoin is released. Still, it isn't entirely related though, since Satoshi never aimed to stop recession with Bitcoin, it was never his goal. The goal was to simply create another system of transaction without a need for a third party to manage it.

The Bitcoin mirroring stocks part isn't really that legit, cause if so, then what happened right now? Bitcoin has well above recovered, and yet stocks are still having difficulties. The damages of the pandemic last March was the cause as to why both stocks and crypto went down badly, but it isn't enough to become the basis that stocks and Bitcoin price are connected to each other.

[slapper]

Another wave of recession is currently building up, analysts have predicted that the upcoming recession will be more than what was witnessed in 2008. without saying, it is clear that the Bitcoin price movement largely mirrors the United States stock price movement. This implies that a heavy fall in the stock market has a high propensity to plunge the price of Bitcoin.

This further implies that, when recession kicks in, those running away from the stock market will possibly not see Bitcoin as an option. What then is the purpose of Bitcoin whenever they say "Bitcoin was born in the wake of the 2008 recession" or is it just a mere saying?

There are too many options for people to choose in this wide and developed world. People are being given more and more opportunities to interact with things that only were available for big boys and banks in the last century. Therefore, you can't blame people for not putting their money in bitcoin. Moreover, bitcoin was born in 2008 but its price was still as low as $400 in 2015. It took bitcoin a big task and progress to reach $20000 in 2018 when the FOMO was created by a large number of crypto investors

During this recession, people only trust assets which have not plunged for many years. For example: Gold.  Gold is a wonderful metal, a safe-haven to anyone who wants to save their money as well as against inflation. It also provides us a shelter to avoid big loss when recession occurs.

Bitcoin price stays normal does not mean that people don't want to buy or stake bitcoin anymore. Long process and development are needed over a period of years in order for the price to increase more and more. You change a thing in just one day, especially it is one of the biggest assets in the world up to now. And as it always has to be, the recession is just a button refreshing our world and creating new ways of living and opportunities