Advantage of holding Bitcoin in time of crisis

[tiCeR]

We all know that there were several times in history when government expropriated gold. And crisis time is most suitable for gov to take such decision. And if so it will be not so easy not only to exchange your gold but even to keep holding it. Each asset you try to use for savings have its own disadvantages. For instance if you'll be forced to flee from your home it will be harder to take your gold with you than to take several hidden words hiding your bitcoins. Of course it is not an ideal variant as well, but gold isn't too.

This hasn't been done in any of the democratic nations for a long time now, I can't remember last time this has ever happened, not in my life time at least, sure maybe in nations like china or Russia it could have happened because they are run with dictatorship, but can't remember any west nation that took peoples gold and used it to make the nation "better".

In any case, gold is still not that good compared to bitcoin, even if no government ever takes your gold bitcoin is still better in the end, since at the end of the day we are talking about bitcoin being better than gold when you compare them at default levels. Bitcoin is better than anything to be fair.

I think that Bitcoin is surely superior to any other asset class when it comes to crossing borders or being mobile in any way. If there is a harsh crisis in a country and you want to leave and arrive with two bags full of gold bars at the airport, I am pretty sure that would be going to end in a thorough investigation and perhaps even (temporary) confiscation in some countries. As you mentioned, when there is economic trouble in China, leaving the country with gold bars is going to very problematic. They won't let you go. They claim that it is for the good of the nation, but what they ultimately want to prevent is that assets are not drained from the economy, thereby further reducing any stimulus that is badly needed to get the economy going again. This is only the second part of their thought process. The first part is that a weak economy weakens such regimes and reduces their political power.

Whether Bitcoin is better than anything depends on a number of circumstances. I guess a woman in their 80s is better of with a gold bar than with a hardware wallet or a paper wallet.

[Ryker1]

Holding bitcoin during times of crisis can provide a sense of security and stability, as well as protection against inflation and other economic risks even though we know it is a highly volatile asset and its value can fluctuate rapidly, so it is not without risks. Besides as I saw this become an attractive option for some people because it is a decentralized, digital currency that is not subject to the same inflationary pressures as traditional fiat currencies --and the reason could be they can store and manage their bitcoin without the need for intermediaries such as banks or financial institutions. This can provide a greater sense of autonomy and independence when it comes to managing one's wealth. While still considering bitcoin may be a viable alternative for some people during times of crisis, it is important to carefully consider the potential risks and benefits before investing in it.

[qwertyup23]

Holding bitcoin during times of crisis can provide a sense of security and stability, as well as protection against inflation and other economic risks even though we know it is a highly volatile asset and its value can fluctuate rapidly, so it is not without risks. Besides as I saw this become an attractive option for some people because it is a decentralized, digital currency that is not subject to the same inflationary pressures as traditional fiat currencies --and the reason could be they can store and manage their bitcoin without the need for intermediaries such as banks or financial institutions. This can provide a greater sense of autonomy and independence when it comes to managing one's wealth. While still considering bitcoin may be a viable alternative for some people during times of crisis, it is important to carefully consider the potential risks and benefits before investing in it.

People argue that BTC is not a good store of value asset due to its high volatility. I do disagree but this comes with the contingent of knowing when to covert your BTCs into cash on the right opportunity and time.

One of the advantages of holding BTC in times of crisis is its value on the market. While it may not be stable compared to tangible assets like gold, expect its price to either increase/decrease depending on the current market status. This is also the reason on why the term HODLING was coined- keeping your assets until its value skyrockets in the future.

[noormcs5]

Holding bitcoin during times of crisis can provide a sense of security and stability, as well as protection against inflation and other economic risks even though we know it is a highly volatile asset and its value can fluctuate rapidly, so it is not without risks. Besides as I saw this become an attractive option for some people because it is a decentralized, digital currency that is not subject to the same inflationary pressures as traditional fiat currencies --and the reason could be they can store and manage their bitcoin without the need for intermediaries such as banks or financial institutions. This can provide a greater sense of autonomy and independence when it comes to managing one's wealth. While still considering bitcoin may be a viable alternative for some people during times of crisis, it is important to carefully consider the potential risks and benefits before investing in it.

People argue that BTC is not a good store of value asset due to its high volatility. I do disagree but this comes with the contingent of knowing when to covert your BTCs into cash on the right opportunity and time.

One of the advantages of holding BTC in times of crisis is its value on the market. While it may not be stable compared to tangible assets like gold, expect its price to either increase/decrease depending on the current market status. This is also the reason on why the term HODLING was coined- keeping your assets until its value skyrockets in the future.

Time of bitcoin crashes are not meant to sell the bitcoin but to hold them or even buy more bitcoins if you have spare fiat or usdt.
If you are able to buy bitcoin in a bear market, you cannot imagine the returns which you will be post in a bull market.
Bear Markets are the perfect time to take entry in bitcoin and keep on holding it for the next two to three years.

[cr1776]

...
Bitcoin is the best alternative way to save money, with Bitcoin you have control over your savings because it's your wallet and your key and you are your banks!

Not to mention that it is difficult to carry substantial amounts of fiat, silver, gold etc over a border if you have to flee someplace like Venezuela, Germany in the 1930s, Russia at the time of the Russian revolution (under Stalin, Lenin, or even today), China under Mao, etc.  There are statists and authoritarians the world over who want to force you to pay for their choices, protect yourself.

We all know that there were several times in history when government expropriated gold. And crisis time is most suitable for gov to take such decision. And if so it will be not so easy not only to exchange your gold but even to keep holding it. Each asset you try to use for savings have its own disadvantages. For instance if you'll be forced to flee from your home it will be harder to take your gold with you than to take several hidden words hiding your bitcoins. Of course it is not an ideal variant as well, but gold isn't too.

This hasn't been done in any of the democratic nations for a long time now, I can't remember last time this has ever happened, not in my life time at least, sure maybe in nations like china or Russia it could have happened because they are run with dictatorship, but can't remember any west nation that took peoples gold and used it to make the nation "better".

In any case, gold is still not that good compared to bitcoin, even if no government ever takes your gold bitcoin is still better in the end, since at the end of the day we are talking about bitcoin being better than gold when you compare them at default levels. Bitcoin is better than anything to be fair.

Part of the reason it hasn't happened is that fiat is no longer backed by silver or gold.  It is backed by nothing except the whims of a government.  Look at Cyprus 10-11 years ago, since few people had gold or silver and the euro (like the dollar) is backed by nothing, they just gave everyone's bank accounts a haircut.  They didn't have to expropriate gold or silver.  If the euro had had silver or gold coins or even been backed by a PM things would've been different.  Like when the democrat president (FDR) expropriated gold in the 1930s and devalued the dollar.  Once the full tie of the dollar to silver and gold was lost in the 1960s and 1970s, it is only a matter of time before the value of the currency is completely lost.

With no anchor to fiat, they can inflate value away, expropriating it by a slightly stealthier method than outright seizure. 

[Mauser]

With most depositors no longer have access to their money through to the high centralization of the financial institutions leaving all the power over their finances in the hand of the central banks.

This crisis has forced many to start looking for an alternative way to save the money, and bitcoin is the best store of value at this point, with Bitcoin, you have total control over your finances and Bitcoin help to reduce the bank to becoming just a Junction or bus stops were our money can just pass through to carry out a transaction or exchange aside from that.

Bitcoin is the best alternative way to save money, with Bitcoin you have control over your savings because it's your wallet and your key and you are your banks!

I agree with you, everybody should hold at least some of their wealth in crypto currencies. It doesn't necessary have to bitcoin, other well established crypto coins are a good alternative too. The problem with our centralised financial system is that the blow up of one institute could lead to the collapse of the whole system. Just think back to 2008 when Bear Stearns and Legman Brothers went bankrupt, all the major banks needed capital infusions and if the government wouldn't have stepped in many more banks would have went under. That is why even when you spread out your saving across multiple banks, it's not a guarantee your money is save. The two best ways to make sure our money is really save is buying crypto currencies and owning a piece of land. If we own our own house or apartment then we don't have to worry about rent during the next major crisis.

[jokers10]

This hasn't been done in any of the democratic nations for a long time now, I can't remember last time this has ever happened, not in my life time at least, sure maybe in nations like china or Russia it could have happened because they are run with dictatorship, but can't remember any west nation that took peoples gold and used it to make the nation "better".

In any case, gold is still not that good compared to bitcoin, even if no government ever takes your gold bitcoin is still better in the end, since at the end of the day we are talking about bitcoin being better than gold when you compare them at default levels. Bitcoin is better than anything to be fair.

If something didn't happen for long it doesn't mean it will never happen again. As cr1776 reminded Cyprus case with one-time tax on deposits was an example of a seizure which held recently enough. And if other "democratic nations" didn't do anything like that longer it just means they used some other options in crisis times. But it doesn't mean they will never use this one. And to be prepared to crisis means to keep in mind that any asset in any country can have its own disadvantages.

[MoonOfLife]

Holding bitcoin during times of crisis can provide a sense of security and stability, as well as protection against inflation and other economic risks even though we know it is a highly volatile asset and its value can fluctuate rapidly, so it is not without risks.

Given what happened during the 2022 crisis, and bitcoin has also lost 80% of its value, I don't see how it can help us fight inflation. Inflation only causes commodity prices to increase by 10%-15%, while if you hold bitcoin, your wealth has dropped by 80% and has yet to recover this year. Bitcoin is just a long-term investment, it doesn't help in times of crisis.

[uneng]

This hasn't been done in any of the democratic nations for a long time now, I can't remember last time this has ever happened, not in my life time at least, sure maybe in nations like china or Russia it could have happened because they are run with dictatorship, but can't remember any west nation that took peoples gold and used it to make the nation "better".

In any case, gold is still not that good compared to bitcoin, even if no government ever takes your gold bitcoin is still better in the end, since at the end of the day we are talking about bitcoin being better than gold when you compare them at default levels. Bitcoin is better than anything to be fair.

If something didn't happen for long it doesn't mean it will never happen again. As cr1776 reminded Cyprus case with one-time tax on deposits was an example of a seizure which held recently enough. And if other "democratic nations" didn't do anything like that longer it just means they used some other options in crisis times. But it doesn't mean they will never use this one. And to be prepared to crisis means to keep in mind that any asset in any country can have its own disadvantages.

Bitcoin is the best alternative in this case, because you can have total control over your money, so governments can't seize it from you, while also keeping the value of your money on long term, on the opposite of the local fiat currency which is losing price fastly in a daily basis.

Gold could be a decent choice, but only if holding it physically, what I think for most people it's hard to acquire. Personally, I have no idea how to purchase physical gold. Also, it's not accessible to transport it when having to leave from one place to another.

[Mr.sprin]

it's true that holding bitcoins is the best way in conditions like this because bitcoin cannot interfere with other people, even if the government even though bitcoin is completely managed by us, I personally like to invest in bitcoin because in my country only bitcoin is not subject to state tax, gold is almost the same as investing bitcoin is just the difference that gold has physical evidence that we can hold.

[jokers10]

Bitcoin is the best alternative in this case, because you can have total control over your money, so governments can't seize it from you, while also keeping the value of your money on long term, on the opposite of the local fiat currency which is losing price fastly in a daily basis.

Gold could be a decent choice, but only if holding it physically, what I think for most people it's hard to acquire. Personally, I have no idea how to purchase physical gold. Also, it's not accessible to transport it when having to leave from one place to another.

Well, even if I'm standing for bitcoin and am at a bitcoin forum I'd say that diversification is a good idea: we all know that it is not a good idea to put all your eggs in one basket. Depending on for how long, why, and how are you planning to hold your savings you can use different ways. If you want to buy something in a couple of weeks you'll probably should even keep your money in what you have at the moment (I guess usually it will be fiat money). If you want to keep them for tens of years and are affraid of inflation, then bitcoin and gold and pieces of art and some other things can probably be not a bad decision, but all of them have own disadvantages. If you have lots of money to be saved I'd prefer to diversify. But if you are affraid of a crisis time bitcoin IMO is better than gold or masterpice as it is easy to move it and to use it directly.

As for where to buy gold: you can buy golden coins and bullions in a bank or on some auction like ebay. Beware of fake.

[Abiky]

The global economy is facing a crisis of inflation and other internal financial crisis, such as what we are witnessing right now with recent bad occurrences around the world in Turkey and Syria a lot of people have been mad homeless and government infrastructures such as banks have been destroyed as a result of the earthquake and other natural and man made disasters that has happened in various regions.

This situation has forced many into financial hardship and the unavailability of financial institutions and services, in fact in some countries a lot of financial crisis is currently being experienced.

With most depositors no longer have access to their money through to the high centralization of the financial institutions leaving all the power over their finances in the hand of the central banks.

This crisis has forced many to start looking for an alternative way to save the money, and bitcoin is the best store of value at this point, with Bitcoin, you have total control over your finances and Bitcoin help to reduce the bank to becoming just a Junction or bus stops were our money can just pass through to carry out a transaction or exchange aside from that.

Bitcoin is the best alternative way to save money, with Bitcoin you have control over your savings because it's your wallet and your key and you are your banks!

The last thing people will be thinking of is Bitcoin during times of crisis. Especially when it has unstable market prices. When there's a natural disaster such as an earthquake or a hurricane/storm, there will be little or no Internet access at all. How would people use Bitcoin when there will be no way to settle transactions on chain? You could use Bitcoin offline using a bearer instrument like a paper wallet, OpenDime, or loaded physical coin. But transactions would need to be settled some point on the Blockchain to ensure everything is final. Maybe someday developers will find a way to fix this? If they solve this problem, then Bitcoin would soar towards new heights in terms of mainstream adoption.

Despite the setbacks, Bitcoin is still a better option than Fiat which is controlled by the government and banks. You get true financial freedom as long as you hold access to the keys. Governments know Bitcoin's potential, so they're doing everything they can to stop it. I'd say they're pretty late to do anything about it. Who knows if BTC surprises us in the future? Just my thoughts

[mendace]

The last thing people will be thinking of is Bitcoin during times of crisis. Especially when it has unstable market prices. When there's a natural disaster such as an earthquake or a hurricane/storm, there will be little or no Internet access at all. How would people use Bitcoin when there will be no way to settle transactions on chain? You could use Bitcoin offline using a bearer instrument like a paper wallet, OpenDime, or loaded physical coin. But transactions would need to be settled some point on the Blockchain to ensure everything is final. Maybe someday developers will find a way to fix this? If they solve this problem, then Bitcoin would soar towards new heights in terms of mainstream adoption.

In reality they have sent satellites with nodes in the atmosphere just to avoid some natural disasters and even if the internet connection fails we always have the possibility of Star Link or not?  I think Bitcoin is unstoppable beyond natural disasters.

[Abiky]

In reality they have sent satellites with nodes in the atmosphere just to avoid some natural disasters and even if the internet connection fails we always have the possibility of Star Link or not?  I think Bitcoin is unstoppable beyond natural disasters.

That's a great idea. But the only downside is that satellites are controlled by companies (eg: Starlink). That means they'll need to meet with government demands or face serious consequences in the long run. Imagine if all of the world's governments turn hostile against Bitcoin. Satellites transmitting blockchain info will be shut down for good. I think the only option would be to perform Bitcoin transactions through radio waves during times of crisis. The cryptocurrency is open source, so what you can do with it is limited to developers' own imagination.

BTC has reached this far since its inception, so I'd say there's nothing governments can do to stop it. Who knows if they'll ultimately give up in their battle against crypto/Blockchain tech? Just my thoughts

[noormcs5]

Holding bitcoin during times of crisis can provide a sense of security and stability, as well as protection against inflation and other economic risks even though we know it is a highly volatile asset and its value can fluctuate rapidly, so it is not without risks.

Given what happened during the 2022 crisis, and bitcoin has also lost 80% of its value, I don't see how it can help us fight inflation. Inflation only causes commodity prices to increase by 10%-15%, while if you hold bitcoin, your wealth has dropped by 80% and has yet to recover this year. Bitcoin is just a long-term investment, it doesn't help in times of crisis.

Since bitcoin adoption is still in the early days, we find this manipulation (yeah I will call it manipulation), where bitcoin is pumped high and then dumped to even 90% or more. When this market matures, I am sure the volatility will decrease and as a result we will find a much stable bitcoin price.
Yes, i will still say that bitcoin is a hedge against inflation because the total supply of bitcoin is fixed and it cannot be increased as compare to any other currency like dollar which the government can print unlimited amounts making it devalue.

[jokers10]

...
When this market matures, I am sure the volatility will decrease and as a result we will find a much stable bitcoin price.
...

Yes, and I can name that price right now, it is 1BTC=1BTC. We discuss bitcoin rates to USD just because USD is still more stable than bitcoin. When bitcoin will become really low volatile and become a very slowly value-adding asset we will value goods and services right in it. Who will care of inflationary fiat currencies that time? A decentralized low volatile currency will become much more popular and useful for evaluating the economy.

[KaliLinux]

There are many advantage to holding Bitcoin apart from what you have mentioned so let's just stick to what works for us. The current crisis between Russia and Ukraine had deprived many people of there right and acces to good food.

Just a question, does holding Bitcoin give them access to good food?  I wonder how can holding Bitcoin help these people in accessing good food?  Isn't it more convenient to them if they have cash to pay for their food?  As far as I know, there isn't much retail stores that accept Bitcoin as payment, and there are still many suppliers that are not into Bitcoin.  So I wonder, what change does it gives holding Bitcoin against holding cash in hand?

We might not not the effect now until we get a grasp of what people that are there are suffering. War is not something we should encourage but the use of Bitcoin since had been helping many Ukraine citizens on donation and free will to help the injured and dead Ukraine soldiers.

Isn't fiat donation helping them the same way Bitcoin donation helping them?

The only thing I see holding Bitcoin become advantage is that it can increase in price in the long run, meaning if you are holding $100 worth of BTC today, there is a possibility that in then next years you will be holding more than $100 but there is also a possibility that you can hold less if the price of Bitcoin crash.

In time of crisis and people have no way to earn money, I do not think people will hold on their Bitcoin when they don't have money to spend for their needs, they will eventually cash out to pay for rents and bills.  I am not negative about holding Bitcoin but I am just saying the obvious when crisis arises, unless you have lots of money that you do not need to touch your cryptocurrency holdings.

I agree and you literally took the words out of my mouth. I however understand how much we will continue to support Bitcoin and as I have always said, most people do so because of the gains from its speculative nature. Yes, Bitcoin does save against inflation and I have personally enjoyed this aspect of it as I believe most of us too but even with the recent fiat difficulty in my region now, Bitcoin is yet to cover that vacuum in terms of daily payment even though it is also well accepted by a good number of the vibrant youths. While it has other advantages of holding Bitcoin, I personally wouldn't consider this as one for now.

[Franctoshi]

The role of Bitcoin in our today's society that is living with high inflation rate which is ravaging across the world and robbing off people the value of their money, is something that holding Bitcoin has come to serve as a solution and as a save heaven. Now people have alternative way to move away from depending on the old Fiat bank system and total government control of their money to being in control of their own money , using Nigeria as a case study where the citizens are currently not allowed to have full access of their had earned money is something insane. Therefore someone who has like 50- 70% of his money stored in Bitcoin would not be much affected. The existence of Bitcoin has huge advantage in today's world.

[mendace]

...
When this market matures, I am sure the volatility will decrease and as a result we will find a much stable bitcoin price.
...

Yes, and I can name that price right now, it is 1BTC=1BTC. We discuss bitcoin rates to USD just because USD is still more stable than bitcoin. When bitcoin will become really low volatile and become a very slowly value-adding asset we will value goods and services right in it. Who will care of inflationary fiat currencies that time? A decentralized low volatile currency will become much more popular and useful for evaluating the economy.

It all seems very correct to me only that it is wrong to refer to Bitcoin as an asset.  In the whitepaper it is declared that it is a form of peer to peer payment, no reference is made to any asset, and I think it is precisely this logic that is wrong many think of Bitcoin as if it were gold to be kept in reality it should be precisely in place of those dollars so stable.

[borovichok]

The role of Bitcoin in our today's society that is living with high inflation rate which is ravaging across the world and robbing off people the value of their money, is something that holding Bitcoin has come to serve as a solution and as a save heaven. Now people have alternative way to move away from depending on the old Fiat bank system and total government control of their money to being in control of their own money , using Nigeria as a case study where the citizens are currently not allowed to have full access of their had earned money is something insane. Therefore someone who has like 50- 70% of his money stored in Bitcoin would not be much affected. The existence of Bitcoin has huge advantage in today's world.

Bitcoin already served its essential obligation to the citizens who embrace it with all their minds. Holding Bitcoin have saved me countless times in the act of generating profits within the hardships of the country economy. Nigeria are trying to redesignate the new currency into circulation, and that alone is causing chaos in the country with majority of Nigerians protesting and kicking against it, because the government have already made crucial ban on cryptocurrency and consider it as illegal means, but some people still go ahead and do what makes them happy and going in the space by providing the Peer to Peer also known as P2P for buying and selling of crypto assets.