Will World Economic Depression Affect Bitcoin?

[BlackBoss_]

I think Bitcoin will continue to be an alternative system to fiat (which will probably be failing badly during a depression) but it won’t be the savior for us.

It won't be an alternative of any system. It is another option for us to choose and diversify our choices.

I disagree with people who are Bitcoin maximalists and say Bitcoin is created to replace fiat currency, to become a new standard, to kill altcoins, to be the only currency on Earth. It is unrealistic belief.

Of course Bitcoin will be affected! An economical depression will make anything that isn’t 100% safe disappear from the people’s mouths for a while, including Bitcoin.

It will be affected, I agree because supply and demand are always interacting with each other. When people finance and pockets are in problems, they will have to focus more on daily expenses, to survive first and investment in any asset will not be their priority. It will impact capital flow in Bitcoin market and will affect its price.

[CryptoBuds]

So if ECONOMIC DEPRESSION happened again in the world, will it affect bitcoin with it fellow digital currencies?

I doubted such will ever occur again and i believe such will never affect bitcoin network no matter how because bitcoin is not a dependent of the world economy system, it has created it's own network from within without depending on the centralized economy being controlled by the government which can be affected by inflation, recession and other natural pandemic occurrences while bitcoin has it own separate network different and independently from these, that's why you could only determines the market values through the bitcoin demands and supplies and not the other economical parameters and factors used in fiat system.

I totally oppose what you say, whether bitcoin is centralized or decentralized, it is still a part of the world economy, it will be useless if it works separately from the rest of the world.

What do you think when inflation and economic crisis in 2022 have had a significant impact on bitcoin? It doesn't even act as an inflation hedge when heavily dumped during periods of inflation and Fed rate hikes. After all, bitcoin is an investment, and its value is completely dependent on people, and people are the ones who are creating this world economy.

[Stella Mese]

when the economic depression hits, of course we will struggle to survive and surely the most prioritized is food and proper shelter, in my opinion if the economic depression hits of course people will start selling their bitcoins because this is where the point of investing in bitcoin is that we will enjoy the return on investment btc even though the assets we are selling are not what we want, for example when we want to sell btc the price of btc has fallen first.

so in my opinion if the economic depression hits of course the price of btc will fall because people will definitely care about their daily needs.

[20kevin20]

It won't be an alternative of any system.

It’s an alternative to fiat even today. Otherwise it wouldn’t be accepted as a currency in stores, have fiat pairs and allow you to spend and receive. It has approximately all the features a currency has.

It is another option for us to choose and diversify our choices.

So you agree it’s an alternative?

I disagree with people who are Bitcoin maximalists and say Bitcoin is created to replace fiat currency, to become a new standard, to kill altcoins, to be the only currency on Earth. It is unrealistic belief.

I didn’t say it’ll replace, I said it’ll continue to be an alternative just like today. And trust me, during a depression we’d all probably rather own a decentralized currency than a currency going through hyperinflation, be discarded, replaced, seized etc by authorities and governments. Your banknotes could become invalid from one day to another because they’d have to move to another currency to keep up with the devaluation. A lot of shit would happen.

I agree though, decentralized isn’t gonna be the new standard, Bitcoin won’t be the world currency, it won’t kill all alts and it won’t replace fiat. But it’s always gonna be an alternative or as you say, another option for us. And maybe it’s better this way.

[Ayers]

I think Bitcoin will continue to be an alternative system to fiat (which will probably be failing badly during a depression) but it won’t be the savior for us.

It won't be an alternative of any system. It is another option for us to choose and diversify our choices.

I disagree with people who are Bitcoin maximalists and say Bitcoin is created to replace fiat currency, to become a new standard, to kill altcoins, to be the only currency on Earth. It is unrealistic belief.

Their excessive delusion and the spread of such thoughts may also be part of the reason governments hate bitcoin so much. I really don't understand why people are always spreading these things against the government when we all know that there is no way to go against the government. We are always losers whether we are right or wrong, the government is the judge of this world.

I would bet anyone that, no matter how perfect bitcoin becomes, it will hardly ever replace the current fiat system. Unless bitcoin maximalists can overthrow and defeat their government.

Of course Bitcoin will be affected! An economical depression will make anything that isn’t 100% safe disappear from the people’s mouths for a while, including Bitcoin.

It will be affected, I agree because supply and demand are always interacting with each other. When people finance and pockets are in problems, they will have to focus more on daily expenses, to survive first and investment in any asset will not be their priority. It will impact capital flow in Bitcoin market and will affect its price.

We don't need to wait for the Great Recession to see if bitcoin is affected. We only need to look at what happened in 2022 and 2023, when the economy was in crisis, bitcoin was not much better.

[Sayeds56]

You're hungry and there's no one sell any foods, someone offer you either a lunch meal or a Bitcoin, which one you choose? that's what happen.

When the world suffer of economic depression, Bitcoin will become worthless because people will try to save any daily needs as much as they can. Being rich aren't their dream anymore, they dream are only to survive.

However I'm not really sure what's the affect you refer, if you mean economic depression will make Bitcoin become centralized, it's completely wrong.

You are absolutely correct that during times of economic hardship , individuals resort to selling their assets including Bitcoin, Gold or whatever they posses to meet their basic needs and support their families. It natural instinct driven by the necessity of survival. As far possibility of economic depression is concerned, I think it is unlikely to occur unless the world major powers engage in a significant regional conflict that spreads to other nations, but hopefully, wisdom will prevail and it won't happen. The world has learned bitter lessons from previous economic meltdowns, and they won't repeat the same mistakes again.

In summary, the performance of Bitcoin will largely depend on its adoption and timely resolution of its regulatory issues.

[ImThour]

When there is no money to even eat, then you surely know that it will also affect Bitcoin as any other investment. The basic necessities are the most important thing which people need in order to survive and that's what they will prefer in the World Economic Depression, instead of keeping money in a blockchain. It will also affect other investment strategies like Stocks etc. It's not just Bitcoin tbh.

[CageMabok]

Guys, hold up, if we were in Economic Depression while most of the government try to implement CBDC, Bitcoin will entirely become the next digital gold as officially right?

You could think of Bitcoin as digital gold now for whatever reason, but basically it's not considered that because Bitcoin is very different from any gold. Even though most governments want to implement CBDC, it does not mean that Bitcoin can immediately turn into digital gold immediately because the basic concept of Bitcoin will remain as usual, although it is not wrong if many people want to think of Bitcoin as digital gold.

I mean previously most people thought Bitcoin as Digital Gold in an unofficial terms, probably in the media, social media and institution and all. Hence, this created another argument, does Bitcoin is a currency or as a hedge against inflation?

 

Bitcoin can indeed be said to be a currency, that is a currency in the crypto space however, that does not mean we can think of Bitcoin as a hedge against inflation as long as its price declines and increases still occur by large amounts in a short time. But apart from all that, you can think of Bitcoin as a good asset for you to save and invest at any time or every moment.

[20kevin20]

Their excessive delusion and the spread of such thoughts may also be part of the reason governments hate bitcoin so much. I really don't understand why people are always spreading these things against the government when we all know that there is no way to go against the government. We are always losers whether we are right or wrong, the government is the judge of this world

Just because you kneel in front of the government doesn’t mean all the rest of us should as well. If you believe governments care so much about you, why is gambling still allowed? I think it’s so much more damaging than Bitcoin. Why instead of practising safety they’re trying to destroy the crypto industry as we speak?

Although a stupid example, it’s the only one that comes up in my mind: Area 51. Remember the day there was a Facebook group for overturning Area 51 and so many people checked in the US Army had to warn they’ll have to use force to protect the area? It’s kinda like that with Bitcoin too. The government isn’t scared about my delusion. It’s scared about what they weren’t expecting Bitcoin could do.

How do you believe there’s no way to go against the government though? History shows you there’s always a way, but you seem to be living in enough fear to think they’ll always win. They aren’t invincible, you’re very very likely more innocent than they are (don’t pretend politics don’t involve corruption, stealing and all types of illegal things) and it’s not the first time a system or government is overturned.

[Latviand]

When there is no money to even eat, then you surely know that it will also affect Bitcoin as any other investment. The basic necessities are the most important thing which people need in order to survive and that's what they will prefer in the World Economic Depression, instead of keeping money in a blockchain. It will also affect other investment strategies like Stocks etc. It's not just Bitcoin tbh.

Most economic or financial disasters are rooted in fiat losing its value so I think that bitcoin will be affected in a way that gold is affected like back in Great Depression, gold became more valuable because they want to strengthen the value of dollar since it was pegged in gold at that time, if bitcoin is really an asset then it will go up in value when a downturn happens because just like gold, people will have perceived value on it and people will see it as a hedge to prevent collapse thus causing the value to go up as more people try to get their hands on bitcoin so they can protect their finances.

[Smack That Ace]

When there is no money to even eat, then you surely know that it will also affect Bitcoin as any other investment. The basic necessities are the most important thing which people need in order to survive and that's what they will prefer in the World Economic Depression, instead of keeping money in a blockchain. It will also affect other investment strategies like Stocks etc. It's not just Bitcoin tbh.

Most economic or financial disasters are rooted in fiat losing its value so I think that bitcoin will be affected in a way that gold is affected like back in Great Depression, gold became more valuable because they want to strengthen the value of dollar since it was pegged in gold at that time, if bitcoin is really an asset then it will go up in value when a downturn happens because just like gold, people will have perceived value on it and people will see it as a hedge to prevent collapse thus causing the value to go up as more people try to get their hands on bitcoin so they can protect their finances.

To be fair, bitcoin has not been able to compare to gold, so when a recession hits, people will still look to gold instead of bitcoin. Gold has been recognized and used for thousands of years, and its value is recognized by everyone. Meanwhile, bitcoin has yet to reach the same level of popularity as gold, so it is highly unlikely that people will look to bitcoin when a recession hits. But if bitcoin achieves the same popularity as gold, its volatility will be like that of gold. I don't think many people will invest in bitcoin then.

[avikz]

During a great economic depression, bitcoin should get positive impact on its price. When the government issued instruments start failing, Bitcoin is something that people can rely on because they can't be controlled by government. That's definitely my own prediction. But I believe the sentiment of the common people will be very positive towards a decentralised asset like Bitcoin during a economic turmoil.

I hope the world will not get into such depression because the financial systems are now more resilient towards such things. But it's good to keep on hoarding bitcoins just in case.

[vv181]

So if ECONOMIC DEPRESSION happened again in the world, will it affect bitcoin with it fellow digital currencies? Because economy is the back bone of everything in the world. What affect economy affect all other things. And bitcoin is the father of digital currency.

Bitcoin marketcap or even let us say the whole cryptocurrency market cap, if we made a comparison with another sector of the financial market, such as companies, assets, FIAT currencies, and many other things, the comparison would make bitcoin have minuscule significance.

At some point, bitcoin has a high correlation with the stock market. And if we look at the recent price surges, it is likely tied to the recent ETF news. So, considering all those things I mentioned, also, specifically in cases of economic depression, it is almost certain that bitcoin would be also affected.

[Ultegra134]

During a great economic depression, bitcoin should get positive impact on its price. When the government issued instruments start failing, Bitcoin is something that people can rely on because they can't be controlled by government. That's definitely my own prediction. But I believe the sentiment of the common people will be very positive towards a decentralised asset like Bitcoin during a economic turmoil.

I hope the world will not get into such depression because the financial systems are now more resilient towards such things. But it's good to keep on hoarding bitcoins just in case.

During an economic depression, people are striving for survival; thus, investing in Bitcoin isn't their first priority. As you may have noticed, we're already in a state of financial depression; the war against Ukraine is still going strong, which is hurting the economy on a worldwide scale, while inflation is still through the roof. And how has Bitcoin performed over the past two years? Certainly not that great, as you may have noticed. It's still more than 50% below the latest ATH, and while that isn't as bad as it sounds, the market is far from recovering, even though it's showing some positive signs.

[panganib999]

Yeah. We already saw what effects a recession could inflict upon the industry 3 years ago.  Who’s to say the same thing, maybe even worse couldn’t happen should a recession/depression happen within this next few years? I’d argue however that even though bitcoin may very well lose a significant percentage of its current valuation should things go south and a recession happen, opportunities to bounce back will come up eventually and bitcoin will be able to recover later down the line, once again like it did during the height of the pandemic. And even if such event were not to happen, bitcoin’s value is still on a net uptrend with high propensity for massive price increases during favorable periods in the market.

So while it’s disheartening for some, it’s not the end of everything for everyone, bitcoin will remain topical and will almost always bounce back from its dump

[Blitzboy]

Their excessive delusion and the spread of such thoughts may also be part of the reason governments hate bitcoin so much. I really don't understand why people are always spreading these things against the government when we all know that there is no way to go against the government. We are always losers whether we are right or wrong, the government is the judge of this world

Just because you kneel in front of the government doesn’t mean all the rest of us should as well. If you believe governments care so much about you, why is gambling still allowed? I think it’s so much more damaging than Bitcoin. Why instead of practising safety they’re trying to destroy the crypto industry as we speak?

Although a stupid example, it’s the only one that comes up in my mind: Area 51. Remember the day there was a Facebook group for overturning Area 51 and so many people checked in the US Army had to warn they’ll have to use force to protect the area? It’s kinda like that with Bitcoin too. The government isn’t scared about my delusion. It’s scared about what they weren’t expecting Bitcoin could do.

How do you believe there’s no way to go against the government though? History shows you there’s always a way, but you seem to be living in enough fear to think they’ll always win. They aren’t invincible, you’re very very likely more innocent than they are (don’t pretend politics don’t involve corruption, stealing and all types of illegal things) and it’s not the first time a system or government is overturned.

Your point about government'srole in curbing industries like cryptocurrency is fascinating. You view it as excessive interference, dampening creativity. Yet, my stance differs. Governments, while sometimes acting not in public favor like permitting gambling, shouldn't be compared to cryptocurrency. Bitcoin symbolizes a new era, demanding prudent regulation and analysis.

Your Bitcoin-Area 51 comparison is catchy, but it misses the government's duty of ensuring safety and stability. Their Bitcoin apprehension, I believe, stems from potential misuse, not technophobia. While governments can be toppled, promoting such drastic measures against disliked regulations seems extreme and ineffective. Backing sound regulation and spreading Bitcoin knowledge seems a wiser trajectory.

[Lorence.xD]

During a great economic depression, bitcoin should get positive impact on its price. When the government issued instruments start failing, Bitcoin is something that people can rely on because they can't be controlled by government. That's definitely my own prediction. But I believe the sentiment of the common people will be very positive towards a decentralised asset like Bitcoin during a economic turmoil.

I hope the world will not get into such depression because the financial systems are now more resilient towards such things. But it's good to keep on hoarding bitcoins just in case.

During an economic depression, people are striving for survival; thus, investing in Bitcoin isn't their first priority. As you may have noticed, we're already in a state of financial depression; the war against Ukraine is still going strong, which is hurting the economy on a worldwide scale, while inflation is still through the roof. And how has Bitcoin performed over the past two years? Certainly not that great, as you may have noticed. It's still more than 50% below the latest ATH, and while that isn't as bad as it sounds, the market is far from recovering, even though it's showing some positive signs.

True even investors in Bitcoin might sell some of their assets for them to have funds for their needs like food or essential requirements. It's actually good to invest when there's a case like this where there's an economic downfall so when in times of need you can sell and have some money. The worst scenario is when there's a high rate of inflation while the income of a person still remains the same so it would be a survival every day as your salary is only sufficient for your needs. Bitcoin for sure would have been negatively impacted by this issue, but some people take advantage of its downfall and will try to invest in it so that when it recovers they could also earn.

[ItsCrafty]

True even investors in Bitcoin might sell some of their assets for them to have funds for their needs like food or essential requirements. It's actually good to invest when there's a case like this where there's an economic downfall so when in times of need you can sell and have some money. The worst scenario is when there's a high rate of inflation while the income of a person still remains the same so it would be a survival every day as your salary is only sufficient for your needs. Bitcoin for sure would have been negatively impacted by this issue, but some people take advantage of its downfall and will try to invest in it so that when it recovers they could also earn.

During an economic depression, the effect on Bitcoin can be influenced by several factors. On one hand, the increased uncertainty and financial instability associated with a depression can drive some investors towards alternative assets. Sometime the increasing demand of Bitcoin as a potential store of value can lead to a rise its price. On the other hand, economic depressions often result in widespread financial hardship, inflation in government policies may reduce consumer spending. These factors may also have a negative effect on Bitcoin as users may sell their holdings to meet needs or pay for immediate expenses. Naturally, the impact of a recession on Bitcoin is complex and depends on a number of market and economic factors.

[irhact]

.
So if ECONOMIC DEPRESSION happened again in the world, will it affect bitcoin with it fellow digital currencies? Because economy is the back bone of everything in the world. What affect economy affect all other things. And bitcoin is the father of digital currency.
What is your say.

Lets flashback to 2020 when the coronavirus disease affected the world and cause an economic meltdown. What happened to the price of Bitcoin, it fall and made many investors to lose money when they sold out of fear because they lost hope that Bitcoin will rise back up. If economy depression was to come Bitcoin can't stand against it, Bitcoin will follow every assets to collapse. Bitcoin might be among the assets that'll lose the most value during this period.

As a long term investors in Bitcoin, during this period is when your loyalty will be tested and only those who holds through this period or were smart enough to buy back Bitcoin before the recovery happens will benefits because Bitcoin price will always recover from any losses.

[Dimitri94]

You're hungry and there's no one sell any foods, someone offer you either a lunch meal or a Bitcoin, which one you choose? that's what happen.

When the world suffer of economic depression, Bitcoin will become worthless because people will try to save any daily needs as much as they can. Being rich aren't their dream anymore, they dream are only to survive.

However I'm not really sure what's the affect you refer, if you mean economic depression will make Bitcoin become centralized, it's completely wrong.

When world Economic Depression starts, it will affect not only the finance but also all the areas. The main function of human survival is to meet his food needs. When people are self-sufficient  in food, they give priority to other thoughts. What will happen with money if there is no food? We know that Bitcoin is a boon to the economy. But I think Bitcoin has no need to be centralized. It is better as decentralized.

But we can say that even when the global economy is on the verge of collapsing due to various reasons, Bitcoin continues to go through an upward trend. As we saw in case of Covid-19.