Will World Economic Depression Affect Bitcoin?

[Woodie]

Just because bitcoin exists online doesn't mean it's immune from what happens out there in the world like the  Economic Depression!
And since this affects the fiat system for example...as banks and what not get closed down, people revert to old methods such as the barter system to trade for goods and services, but I think bitcoin could become a valuable asset to use as a medium of exchange like what was used several years ago as gold or silver.

Overall bitcoin could pump like crazy should this happen in this Era as people will panic buy to protect their worth.

If we have economic depression, it will affect not only bitcoin but even other assets like gold. People will look for survival necessities like food and shelter and not spend on luxury.

But bitcoin is not a luxury if that's the impression it has, it can actually be used as any other currency out there and it being decentralized could be a good thing against  such phenomenon as economic depression.

[smile1218]

The world economic depression could potentially affect bitcoin, as it has the potential to impact the global financial market as a whole. Some experts argue that bitcoin could benefit from the economic downturn, as investors may turn to alternative assets such as cryptocurrencies as a hedge against inflation or economic stability. Bitcoin decentralized nature and limited supply could make it an attractive investment option during times of economic uncertainty. Economic depression could lead to a decrease in demand for cryptocurrencies, as investors may prioritize more traditional assets such as gold or government bonds. The economic downturn could also impact the mining and trading of cryptocurrencies, potentially leading to a decrease in bitcoin's value.

[Texac]

If we have economic depression, it will affect not only bitcoin but even other assets like gold. People will look for survival necessities like food and shelter and not spend on luxury.

But bitcoin is not a luxury if that's the impression it has, it can actually be used as any other currency out there and it being decentralized could be a good thing against  such phenomenon as economic depression.

Bitcoin was originally designed to withstand inflation and recession, but so far it has not fulfilled that mission.  the proof is that it is still dumped when a crisis or inflation occurs.  one more thing, bitcoin is not used as a currency, if people considered it currency, they wouldn't have dumped it when bad news attacked us. most of us only see bitcoin as an investment asset, and that is why it cannot become a currency nor a safe haven when inflation occurs.

[suzanne5223]

It's hard to tell if the economic depression will affect Bitcoin price since there are a lot of things that determine the BTC market's new trend we already know bad news is one but judging by the previous occasion that happened during the total lockdown we see that investors often seek alternative assets as a store of value or a hedge against economic depression and most of them find there alternative in BTC. Therefore, there's a huge possibility that economic depression may not affect BTC.

If recession, the economic crisis does not affect bitcoin. Can you explain to me what happened in 2022 and this year? When inflation is high, all industries are affected, and bitcoin is also severely dumped in 2022. Not to mention, every time the Fed announces a rate hike, bitcoin continues to be dumped, or negative news about war also causes the market to panic...All this is not telling you that if the economy is unhealthy, every asset and industry will suffer, and bitcoin is no exception.

Remember I said a lot of things impact the price of the Bitcoin market and cause the dump in the price of last year was many but the most crucial part is the normal market correction that always occurs before the block halving market effect and the FTX collapse.
This year dum was influenced by Bitcoin Ordinals/BRC-20 and the US SEC lawsuit on top exchange but bullish trend happened when giant investment companies show their interest in BTC publicly.

I know you are referring to the 4-year market cycle after bitcoin makes a new ATH in 2021. But if you take a closer look at the volatility of bitcoin last year, bitcoin reacted as strongly as other markets when news of the war between Ukraine and Russia broke out. Moreover, every time the Fed announces inflation as well as interest rate hikes, bitcoin will fluctuate and be dumped. That is not enough to demonstrate the impact of the economy on the market?

The value of any asset depends on the supply and demand of people, and people are also a part of the world economy. Bitcoin would be nothing to say that it is not part of the world economy.

Yes, the Fed inflation and hike in interest rates announcement somehow impact the price of the Bitcoin market but the dump is always slightly dump in price.
I think getting wrong because I never said Bitcoin is not part of the world economy and what I am saying is that people always find an alternative in Bitcoin whenever there's a world economic depression.

[usekevin]

The Economic depression will surely make the impression in the bitcoin.Because bitcoin always had their impact in the economy and financial stability.The global financial market was functioning by the Bitcoin now.Bitcoin decentralisation is base for bitcoin survived over a decade.People also uses government bonds and gold.Because both of them are real and easy exchangeable assets.

[Blitzboy]

The Economic depression will surely make the impression in the bitcoin.Because bitcoin always had their impact in the economy and financial stability.The global financial market was functioning by the Bitcoin now.Bitcoin decentralisation is base for bitcoin survived over a decade.People also uses government bonds and gold.Because both of them are real and easy exchangeable assets.

Bitcoin and the economics are fascinating. Your essay on Bitcoin's decentralized nature's resilience is enlightening. I'd want to explore this relationship's ramifications. Bitcoin's function in a recession is unclear. Decentralization and independence from conventional banking systems have helped it survive storms. Remember Bitcoin's renowned volatility. This makes it a dangerous shelter amid economic upheaval.

Government bonds and gold are tangible and exchangeable, providing security. Like Bitcoin, these assets have specific dangers, such as inflation (bonds) and price fluctuations (gold). Thus, investing requires a balance.

[BenCodie]

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.

I think this quite an extreme view. To assume that life will boil down to people trading Bitcoin for a meal, rather than using Bitcoin to barter/pay for food, is unrealistic.

In a economic depression that is this extreme, the real question comes down to the stability of Bitcoin's price, which comes down to its accessibility and usability throughout the world.

The fact is, we are not ready that kind of event. Fees costing $1-$5+ make it unviable for daily use. Knowledge is also not high enough for it to be globally adopted.

Whether this is close and we should think about it, or not, is the first question we should be asking and exploring before the one in the OP.

[serjent05]

The Economic depression will surely make the impression in the bitcoin.Because bitcoin always had their impact in the economy and financial stability.The global financial market was functioning by the Bitcoin now.Bitcoin decentralisation is base for bitcoin survived over a decade.People also uses government bonds and gold.Because both of them are real and easy exchangeable assets.

Yeah, I also think that economic depression will pull Bitcoin market down.  Just like stated on the earlier reply, people with not sufficient fund to bring food on the table will choose food than any other kind of investment.  This will greatly affect the demand for Bitcoin.  With people selling their asset (including bitcoin) to help themselves cross the world economic depression, there will be an influx of Bitcoin supply and with less demand for it, the Bitcoin market will really experience the sell pressure pushing the price down.  Since we all know, Bitcoin being in free market always rely on the supply and demand.

[aweson889098]

Being a scam victim can be depressing, from being given empty promises. They usually stop replying after achieving their aim that  hurts even more, well , I have been there too as I  was too ambitious and wanted a secured future and financial security  too!  , that made me invest a chunk of my life savings indeed ,  and I was scammed off everything . Yeah , EVERYTHING !!.. BUT my gratitude goes to Cubareclaim because with their intervention ,  I was able to recover a SIGNIFICANT  part of my investment fast! It was like magic.   so grateful to Cubareclaim .  Check them out .

[StreakW]

In my opinion, the world economic depression can affect Bitcoin and other cryptocurrencies. An economic depression can create uncertainty in financial markets as a whole, affect Bitcoin demand and adoption, and create correlations with traditional markets. Nonetheless, there is also a view that Bitcoin can serve as a hedge asset in difficult economic situations. However, please note that there is no guarantee how Bitcoin will react in a world economic depression scenario.

[doomloop]

World economic depressions have happened several times in history, one of which is the one you mentioned, and it happened right after the First World War. To say that it was created as a result of the impact of the First World War. So if you look at the world economic depression, since physical damage or war has happened, so I think physical asset will be more important than virtual asset. And that's why I think Bitcoin's price can have a lot of downfall.

Obviously, that’s what would be obtainable in situations of a Great Depression as good would be of the most importance with people trying to build up from where they left off. Having access to mobile network would be next to impossible with lack of facilities but that would depend on the course of the depression though.
Still, we invest today that we might be able to profit and sustain our lives through years and enjoying our crypto investment would help to serve that purpose. In times of Great Depression, only the powerful or those who have more than enough could be able to buy and there would be a lot of sellers. This would in turn have an effect on price as supply would be in surplus.

A worldwide economic depression doesn't necessarily have to occur after a big war, there are countries at the moment that was not in any war but still are struggling with their economies and rising rates of inflation, and when that happens with most of the countries, that is what economic depression is, and in such times, people can have access to the internet and cryptocurrencies, so it's not impossible for them to not be able to have access to Bitcoin.

And I don't think that people will abandon Bitcoin or cryptocurrencies in such situations since they are mainly not affected by wars and everything and they can still sustain a good value over time no matter what happens, so people might prefer investing whatever they have left in Bitcoin.

[CageMabok]

In my opinion, the world economic depression can affect Bitcoin and other cryptocurrencies. An economic depression can create uncertainty in financial markets as a whole, affect Bitcoin demand and adoption, and create correlations with traditional markets. Nonetheless, there is also a view that Bitcoin can serve as a hedge asset in difficult economic situations. However, please note that there is no guarantee how Bitcoin will react in a world economic depression scenario.

Now the reaction from Bitcoin itself is also very clear in the market, where price bounces upward are always there and are very visible after a price correction. I also don't think that the world's economic conditions are going well, but I still firmly believe that Bitcoin's condition will continue to improve this year and everyone can buy it now before it becomes more expensive in the market.

The world economic depression could also be affected by the existence of several large businesses whose sales were not smooth and resulted in fewer purchases. Apart from that, the large number of unemployed and the low salary received by many employees can also be a trigger so that everyone must try to save on themselves because if there are difficulties in the economic sector it will also hinder other sectors in this world.

[Xampeuu]

In my opinion, the world economic depression can affect Bitcoin and other cryptocurrencies. An economic depression can create uncertainty in financial markets as a whole, affect Bitcoin demand and adoption, and create correlations with traditional markets. Nonetheless, there is also a view that Bitcoin can serve as a hedge asset in difficult economic situations. However, please note that there is no guarantee how Bitcoin will react in a world economic depression scenario.

a number of world economic situations have had an impact on the development of bitcoin, the two are interrelated considering that investors need a place to protect their assets from the depreciation of the world economy, although sometimes it does not have a significant effect on the bitcoin market. for example when a war occurs, of course inflation will increase high and property assets may no longer be worthless, food is a staple for continuing life, besides that if there is still an internet network of course bitcoin is an option to save their money, until finally when the atmosphere is conducive then the value of their money will actually increase, because bitcoin works globally around the world

[retreat]

There was a Great Economic Depression in the world and it started from 1929 and ended in 1939 which stayed about 10 years and that was the longest one ever. In that great economic depression the world ecoonomy was dis-stabilized in all areas of life and livelyhood. Banks were closed down for the long period of years, farms were destroyed, industries closed down. Live was unbearable. People died and human suffer to the core. And everythings  in life were affected no school and life became survival of the fittest.
Now this technology age and must transactions are done online without going to the bank. Sometimes we buy things without going to the supermarket or to the market square you just order from online and you received your goods at your door post without stress.
The present day ecoonomy is much more better comparing to that of 20s down. Things are make easy to use. Physical bank stress is also fading gradually to the hand of technology calls digital currency.
And bitcoin is the Father and the King of this digitalization.
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.

It will. The economic depression is a fairly chaotic and uncertain condition. Many companies have collapsed and even countries are on the verge of bankruptcy. If this were to happen again in the current period, it would be disastrous for Bitcoin and the crypto market. Surely there will be many crypto holders who are panic selling their assets to be able to secure their financial condition and make crypto values fall. This is a condition that all of us don't want, seeing how the Bitcoin and crypto market is destroyed and helpless, and it will definitely be quite difficult to recover in a short time.

[KiaKia]

The depression of the 2020 Covid 19 have thought me a lesson that every hard hit on this earth is a benefactor for some people, if such thing happen again ( I don't pray so ) then I will take my chances and become even stronger in my plans, what could possibly go wrong now after what we saw and lived through in 2020? God, I thought this world was coming to an end fast, I thought the virus will wiped out every surface of the earth but instead some peel get fatty and filthy rich out of the whole mess.

Till today I still believe that the CoVid was a planned attack on this earth by some group of powerful people who, so brothers, if another form of Depression comes and it affects Bitcoin, do not let it shaked you out, be strong because it will also pass.