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Author Topic: Will the next economic crisis in the world instead cause financial inflows into  (Read 497 times)
davis196
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July 08, 2021, 12:43:47 PM
 #21

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?

Are you talking about the post-pandemic era?
I actually expect the global economy to recover pretty fast after the pandemic is over.There will be high levels of inflation,but sometimes inflation can a serve as a booster of the economic activity.I'm sure that the central banks will find a way to put inflation under control.
What will happen to Bitcoin?Well,I think that Bitcoin is still bullish in the long term.It doesn't matter if the global economy begins a new era of rapid economic growth or we face a sudden economic collapse after the pandemic.
In both cases Bitcoin will be a desirable financial asset.

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July 08, 2021, 08:05:55 PM
 #22

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?
I think we saw what could it happen with the economic crisis that we saw that was caused by covid during last year, at the beginning there was a panic and people sold their coins creating a crash, but then after the people began to think clearly again they realized that bitcoin was their best option and we saw a huge deal of money coming to the market, this is more or less what I would expect on an economic crisis except that it will be even more extreme if such crisis happens because fiat currencies became unstable.
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July 08, 2021, 08:35:17 PM
 #23

I actually expect the global economy to recover pretty fast after the pandemic is over.There will be high levels of inflation,but sometimes inflation can a serve as a booster of the economic activity.I'm sure that the central banks will find a way to put inflation under control.
I don't actually think so, or it'll be possible only in countries with a viable economy pre-pandemic, I think for countries that were already experiencing inflation and hyperinflation, coupled with a struggling economic situation, the pandemic only made their case worse and they would not be getting out of this mess anytime soon, for countries like the U.S or China, they would experience inflation no doubt, but I expect measures to be put in place to curtail it sooner rather than later, but the same can't be said of some developing and underdeveloped countries.

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dota2bestplayer
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July 09, 2021, 06:51:45 AM
 #24

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.
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July 09, 2021, 06:57:34 AM
 #25

Bitcoin itself depends on the market, and the market determines that it is greatly affected by funds. When liquidity dries up, no economy or finance can easily get out of it. But I don't think the global economy will collapse completely and easily.
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July 09, 2021, 07:28:06 AM
 #26

The economic crisis should be good for Bitcoin. The economic crisis is caused by the government messing up monetary and fiscal policies. Economic crises often lead to inflation, paper currency will depreciate, and Bitcoin will not be affected by state control, and its value will rise. To solve the economic crisis, it is necessary to return the monetary power to the market. Bitcoin has the characteristics of decentralization and is not controlled by the government and the state.
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July 09, 2021, 09:02:05 AM
 #27

Your guess is just as good as ours. Bitcoin has never been through an actual economic crisis in the past so all we can really do right now is speculate.

There are only 2 scenarios that could happen in the top of my head:

1. People flock to so-called "safe haven" assets such as gold and bitcoin.
2. Bitcoin holders sell their bitcoin just so they have enough funds to survive.

Make your pick.

On point and a wrong belief that many have. Bitcoin won't just rise because we have a crisis. A crisis is a crisis and it deserves its name for a reason. Assets decrease in value, people lose their jobs and are out of cash. The last idea you are most likely to get during a severe crisis is putting the last pennies you have left into Bitcoin. You would rather be happy to have Bitcoin and sell it.
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July 09, 2021, 10:06:48 AM
 #28

I don't actually think so, or it'll be possible only in countries with a viable economy pre-pandemic, I think for countries that were already experiencing inflation and hyperinflation, coupled with a struggling economic situation, the pandemic only made their case worse and they would not be getting out of this mess anytime soon, for countries like the U.S or China, they would experience inflation no doubt, but I expect measures to be put in place to curtail it sooner rather than later, but the same can't be said of some developing and underdeveloped countries.


Which should negate most of the world's economies (which is why the majority of developing economies chose to ignore it because if they had just stopped imagine how bad their systems would crash).

It's unbelievable to see mega corporations and MNCs just go bankrupt after one month of not producing or working. Imagine how much more worse for poorer economies with less resilient structures?

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RealMalatesta
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July 10, 2021, 10:28:09 AM
 #29

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?
I would assume that just like in the pandemic crash of 2020 march, we will probably see bitcoin crash with everything else for the immediate reaction, however afterwards we will slowly grow bigger and bigger, that looks like a possibility to me.

I understand that it doesn't really sound like something that will happen very easily, but the idea that we should see bitcoin rising after a crash is something everyone agrees with, bitcoin is anti-inflation and crashes usually cause governments to print more money and when that money is printed then it becomes less valuable causing bitcoin to go up a lot bigger. That is just what I "assume" will happen but it is not something that we faced all that much, so far we only had one crash since bitcoins creation and it happened this way, doesn't mean that it will happen that way at all times neither.
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July 10, 2021, 01:48:31 PM
 #30

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?
I would assume that just like in the pandemic crash of 2020 march, we will probably see bitcoin crash with everything else for the immediate reaction, however afterwards we will slowly grow bigger and bigger, that looks like a possibility to me.

I understand that it doesn't really sound like something that will happen very easily, but the idea that we should see bitcoin rising after a crash is something everyone agrees with, bitcoin is anti-inflation and crashes usually cause governments to print more money and when that money is printed then it becomes less valuable causing bitcoin to go up a lot bigger. That is just what I "assume" will happen but it is not something that we faced all that much, so far we only had one crash since bitcoins creation and it happened this way, doesn't mean that it will happen that way at all times neither.

Didn't all the markets grow that impressively because of all that quantitative easing? That is why everything right now feels a little bit (or even a lot) bubble like. All the money the people received seems to be flowing into markets as everyone wants/needs to make a quick buck and the greenish markets looked like the perfect opportunity for that. If there is no such quantitative easing after another crash, do you think Bitcoin would go up again the same way it did this time after/during the crisis?
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July 10, 2021, 08:07:08 PM
 #31

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?


In my opinion if global economy will crash definitely Bitcoin and other crypto will crash too, and i think it would be hard for Bitcoin to recover cause will priorities their basic need rather than digital assets.
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July 11, 2021, 06:44:23 PM
Merited by paxmao (2)
 #32

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?


In my opinion if global economy will crash definitely Bitcoin and other crypto will crash too, and i think it would be hard for Bitcoin to recover cause will priorities their basic need rather than digital assets.
But you are leaving out the most important part, if we take a look at what happened during the crisis caused by this pandemic we can see that there was in fact a crash but after it we saw a meteoric recovery, and it is not difficult to guess that something similar will happen the next time there is an economic crisis, the fundamentals of the economy are bad, there are raising prices, unemployment and many small businesses are disappearing, if that was not enough countries are heavily indebted and consumer spending is low, this tells me a crisis is coming and when that happens people will do what they can to find a way to protect themselves from it and bitcoin will be there to help them increasing its value in the process.
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July 11, 2021, 09:38:28 PM
Merited by paxmao (2)
 #33

     Such circumstance when an economical crash or a world scale financial crisis happens is not that out of proportion. Even with just a few months of being immersed in the covid-19 pandemic, lots of people have already been looking for other alternatives to earn money or save their assets from the effects being made by the global pandemic. Even more so as the duration of the pandemic got longer and longer. I say this since lots of people I know personally have started venturing into this industry and even going as far as investing in crypto related games. Their reasons? They need an alternative, can't stay idle and unable to provide for the people relying on me and so on. Still though, we cannot be sure about anything yet since when jobs or other ways to earn money are scarce, how the leaders of a country react to such phenomenon would be the only thing that can give an insight to everyone on what may happen next.

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July 12, 2021, 03:42:44 AM
Merited by paxmao (2)
 #34

A few months ago I assumed that once covid was gone, which it pretty much is in most of USA then the world would get back to normal. No more printing and stock markets and crypto would pullback. However not really seeing that yet. Stock market keeps making new highs. People not wanting to work. Everything being expensive like cars and houses. Even luxury clothes or handbags having lines full of people. When will this end?

I don’t see it going on forever. Market needs a correction. Maybe when Fall comes and we are a massive correction in the stock markets we will finally see some pain. But right now markets keep going up and up and nobody knows when it will get in with reality of how the world works.
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July 13, 2021, 05:52:31 PM
 #35

In my opinion if global economy will crash definitely Bitcoin and other crypto will crash too, and i think it would be hard for Bitcoin to recover cause will priorities their basic need rather than digital assets.
for me, probably if global economy will crash, crypto space will remain fine in my opinion , because they are not connected and no one can control digital currency unless if they ban mining activities because it always made an impact in the market.. And you know there's a possibility that people will going crazy to grab digital currency if that time happens because there's a big differential when it comes to prices, and in fact digital currency is so high tech and become very useful nowadays even some government are against.  So there will be a chance to replace fiat into crypto as it can be use as well like a real money in my personal opinion.

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July 16, 2021, 08:25:47 AM
 #36

Bitcoin has the attributes of security and decentralization. Even if there is another economic crisis, it will continue to operate without being disturbed by the crisis. When the epidemic first broke out in the United States, the unemployment rate increased significantly, and the number of people in the epidemic continued to increase. In this scenario, Bitcoin would choose to realize assets instead of buying Bitcoin. Therefore, Bitcoin is developing well, but the market may also decline.
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July 19, 2021, 11:35:29 AM
 #37

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.
We still don't know though if bitcoin isn't going to be dragged down by this collapse though but I am a firm believer that we will see it as a hedge by many people that sees bitcoin as it is which is a shield for collapse and inflation.

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July 19, 2021, 01:47:26 PM
 #38

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.

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July 19, 2021, 04:31:17 PM
 #39

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.
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July 19, 2021, 04:38:27 PM
 #40

Yes and the covid pandemic has proven this because at time of despair and people losing a lot of money they have invested in Bitcoin. Bitcoin reached its highest ever price during a pandemic which was ravaging the whole world and causing hefty medical bills and putting people out of work. Yet Bitcoin is what they turned to.
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