Will the next economic crisis in the world instead cause financial inflows into

[wxa7115]

There's already one brewing (or happening already for some countries), I still think pandemic-induced contraction will only be felt in the coming years. The last big one a decade ago got band-aided by debt relief and more money printing, which is really the same tactics used by central banks now. It'll still be a while before the banking system collapses but it won't be until China really flexes its muscles that we'll see real moves taking place.

IF the US dollar is to be thwarted, it needs to be replaced with something. Yuan is the likelier displacer, though, not Bitcoin.

I do not know if other countries are going to be that happy to let the Chinese to have even more power over them, I think it is way more likely that we go to a system of basket of currencies in which instead of having a single currency being the unofficial currency of the world, as it is the case of the US dollar at the moment, we will have governments holding the currencies of several other countries.

However this will make the economy even more unstable and I would be not surprised if such system does not last for long.

[buwaytress]

IF the US dollar is to be thwarted, it needs to be replaced with something. Yuan is the likelier displacer, though, not Bitcoin.

I do not know if other countries are going to be that happy to let the Chinese to have even more power over them, I think it is way more likely that we go to a system of basket of currencies in which instead of having a single currency being the unofficial currency of the world, as it is the case of the US dollar at the moment, we will have governments holding the currencies of several other countries.

However this will make the economy even more unstable and I would be not surprised if such system does not last for long.

Actions say otherwise -- a huge part of the pacey development now going on in Africa and in Southeast Asia (possible South America too but I don't know enough) is Chinese money. Highways, skyscrapers, public transport, utilities -- I've seen myself swathes of land being developed at breakneck speed all taking on yuan injections. A digital yuan would cut down on friction and I think commerce-wise, developing economies would welcome yuan-based exchange, loans, invoicing... instead of US-based at the moment. The banks and central banks would be doing those currency baskets (and already are) but B2B is where China's prepping their muscles for flexing.

[Clavulanic]

What is likley to happen to BTC in the imidiate aftermath of a global economic crash, and what will a recovery look like in comparison to the economy?

Btc would probably face more difficult times to recover once an economic crash come at worst point like in a war or another pandemic which is really scarsh than covid-19. People nowadays was too fascinated with the news, and every updates being published on internet they affected a lot based on their emotions which also a big factor to cause panic. So then, if there's a possible trigger point that will initiate, investors will dump their btc quickly out of panic.

[magneto]

I'd expect BTC to move in tandem with the rest of the asset classes during the crash, but rebound much more strongly after the fact.

As we saw during the COVID pandemic, BTC initially was panic sold all the way down to $3k but recovered to all time highs after stocks started to rally.

With inflation sky high right now I really do think that it is a matter of time before people start looking for safe haven assets. Gold is too clunky, so BTC is likely going to receive a lot of attention on that front.

[Findingnemo]

What is likley to happen to BTC in the imidiate aftermath of a global economic crash, and what will a recovery look like in comparison to the economy?

Lets take covid crisis as an economic crisis then we all knows what happened to the stocks, gold and cryptocurrencies. As immediate effect every asset value fell but in no matter bitcoin started to recover and start gaining attention as well so that we reached over 60k as result.

Bitcoin could also crash of course. It would certainly crash if it's in real bubble territory and everyone fears liquidity will dry out. Apart from that it could also certainly be a safe haven and not move much. What I don't believe is that it will go up because honestly there aren't many people during a crisis whose tendency to invest increases during such times.

Actually, I don't get your point.

During pandemic people won't have money to invest on assets because they are looking to spend on their daily needs over future assets so there are certain class people who have millions already sitting in their bank account and still got money in their hand will take this as an advantage and make more money as much as they can by investing when the price is at the lower level.

[Hippocrypto]

What is likley to happen to BTC in the imidiate aftermath of a global economic crash, and what will a recovery look like in comparison to the economy?

When there's a possibility of that scenario, global economic crash will tend to crack down all business related to money. Stocks and other particular exchanges will be crashed down toward cheaper value and eventually be dead of can't handle to crisis. With bitcoin, it's expected to go down along with other cryptocurrency altcoins, but by the time recovery phase goes back I think it is still dependent with normal fiat economy. Investors will not go back immediately, because they're having hesitations because of the previous world crisis.

[Nightz]

What is likley to happen to BTC in the imidiate aftermath of a global economic crash, and what will a recovery look like in comparison to the economy?

Lets take covid crisis as an economic crisis then we all knows what happened to the stocks, gold and cryptocurrencies. As immediate effect every asset value fell but in no matter bitcoin started to recover and start gaining attention as well so that we reached over 60k as result.

Bitcoin could also crash of course. It would certainly crash if it's in real bubble territory and everyone fears liquidity will dry out. Apart from that it could also certainly be a safe haven and not move much. What I don't believe is that it will go up because honestly there aren't many people during a crisis whose tendency to invest increases during such times.

Actually, I don't get your point.

During pandemic people won't have money to invest on assets because they are looking to spend on their daily needs over future assets so there are certain class people who have millions already sitting in their bank account and still got money in their hand will take this as an advantage and make more money as much as they can by investing when the price is at the lower level.

You just repeated what I said, so you obviously got my point. Interestingly, a lot of people think that during a crisis people flee into Bitcoin, but I fully agree with you that during a crisis most people don't have anything available they could liquidate and put into Bitcoin. The rich guys, yes they are very well positioned to even buy the Bitcoin up that others are forced to liquidate, but the average person is trying survive rather than gambling on cryptocurrencies. That was my point. That is also why Bitcoin will not explode during a crisis. It might though if we are talking about a hyperinflation crisis.

[Findingnemo]

snip~
You just repeated what I said, so you obviously got my point. Interestingly, a lot of people think that during a crisis people flee into Bitcoin, but I fully agree with you that during a crisis most people don't have anything available they could liquidate and put into Bitcoin. The rich guys, yes they are very well positioned to even buy the Bitcoin up that others are forced to liquidate, but the average person is trying survive rather than gambling on cryptocurrencies. That was my point. That is also why Bitcoin will not explode during a crisis. It might though if we are talking about a hyperinflation crisis.

A lot of investors flee to bitcoin when they knew that bitcoin was maintaining even while all the other assets are still crashing that is how the $60K bull run was started then later an average man also started to accumulate as much as bitcoin but many of them entered too late which is a common mistake done by a common man at the time of investing. When someone wants to make money then they need to invest when it at its red trend then they can reap when the price changes to green trend.

[fullhdpixel]

Interestingly, a lot of people think that during a crisis people flee into Bitcoin, but I fully agree with you that during a crisis most people don't have anything available they could liquidate and put into Bitcoin. The rich guys, yes they are very well positioned to even buy the Bitcoin up that others are forced to liquidate, but the average person is trying survive rather than gambling on cryptocurrencies. That was my point. That is also why Bitcoin will not explode during a crisis. It might though if we are talking about a hyperinflation crisis.

Even the smallest investor could find 20 bucks to invest but that is not the point. I do agree that people do flee to bitcoin at all times, not even just during crisis but every single time and that means that there is a good chance everyone who has few hundred to thousands of dollars people do end up putting in a lot of money into crypto, so that is why I honestly do not think that we should be focusing on bitcoin as of right now, but more towards the crisis in that situation. What does that mean? What kind of crisis is this that we are talking about?

2008 was a manmade crisis that caused a lot of people to lose money, but it was basically all digital numbers, this past year however is a crisis based on a virus, which is totally different. There are different crisis causes and each would lead to different result if you ask me, that is why there isn't one correct answer.

[wxa7115]

IF the US dollar is to be thwarted, it needs to be replaced with something. Yuan is the likelier displacer, though, not Bitcoin.

I do not know if other countries are going to be that happy to let the Chinese to have even more power over them, I think it is way more likely that we go to a system of basket of currencies in which instead of having a single currency being the unofficial currency of the world, as it is the case of the US dollar at the moment, we will have governments holding the currencies of several other countries.

However this will make the economy even more unstable and I would be not surprised if such system does not last for long.

Actions say otherwise -- a huge part of the pacey development now going on in Africa and in Southeast Asia (possible South America too but I don't know enough) is Chinese money. Highways, skyscrapers, public transport, utilities -- I've seen myself swathes of land being developed at breakneck speed all taking on yuan injections. A digital yuan would cut down on friction and I think commerce-wise, developing economies would welcome yuan-based exchange, loans, invoicing... instead of US-based at the moment. The banks and central banks would be doing those currency baskets (and already are) but B2B is where China's prepping their muscles for flexing.

I stand corrected, yet I still think this is not such a good idea, a world dominated by the US dollar has been bad as they have abused their position of power at every single opportunity, but a world where the Chinese currency takes its place seems to be even worse to me.

After all the Chinese government is also a currency manipulator and I am not so sure other powerful countries will simply accept this instead of trying to impose their own currencies as the new standard for the world, all in all interesting times are head of us and I will hold my bitcoin as a way to protect myself from this.

[GeorgeJohn]

I think that when the next economic crisis occurs, Bitcoin should have more advantages than disadvantages, because during an economic crisis, money will depreciate and no longer be valuable, but Bitcoin will not. The more legal currency depreciates, the more Bitcoin rises. The space will be higher, thus reflecting the value as a safe-haven asset.

Yes of course, because bitcoin will be at advantage due to it's a digital currency, observing any digital currencies in another form, it's obvious that an economic Crisis only affects those things that are of physical and controlled or managed by a sector, so relating cryptocurrency to economic problem to a particular country or worldwide evaluation of crisis, now when economy is not suitable it causes unbalance to the country or lack of finance....but with cryptocurrency, especially bitcoin the values of your money will still remain constant.

[romero121]

Bitcoin adoption have been increasing with time. During the earlier financial crisis people weren't much aware about the existence of cryptocurrency. Last two year almost every country has been experiencing hard economic situation. By that time the market of bitcoin was found strong. This is all because of the understanding of people about bitcoin.

As a way to secure the earnings people got into bitcoin. Now when situation is getting on track people started to sell the holding to make their next move. So, economic crisis makes inflow and outflow of money based on the level of acceptance bitcoin has got by that moment.

[Evgenklm]

In any financial crisis, fiat money is most often devalued, which is why literate people are looking for how to save their savings, bitcoin in this regard will be the best asset, so bitcoin will confidently keep the bar in a crisis.

[wxa7115]

Bitcoin adoption have been increasing with time. During the earlier financial crisis people weren't much aware about the existence of cryptocurrency. Last two year almost every country has been experiencing hard economic situation. By that time the market of bitcoin was found strong. This is all because of the understanding of people about bitcoin.

As a way to secure the earnings people got into bitcoin. Now when situation is getting on track people started to sell the holding to make their next move. So, economic crisis makes inflow and outflow of money based on the level of acceptance bitcoin has got by that moment.

The pandemic has been a gigantic test to almost any industry out there and I think we can safely claim that bitcoin passed that test, at the beginning the price of bitcoin went down as people were afraid of what was happening and no one knew how bad the pandemic will be but even then the price of bitcoin recovered relatively quickly and we reached several all time highs when many other industries were in shambles.

This show us that the ideas that we have about bitcoin becoming a store of value are not wrong, it is true the volatility can still be extreme but even at its lowest point during this year bitcoin was still pulling off a 5x from its low point on March last year which is way better than what the rest of the assets around the world were showing up at the time.