Could Bitcoin potentially serve as a safe haven in the upcoming economic crisis

[Wind_FURY]

If I look at history, there is no investment instrument that maintains value at the beginning of the crisis. Bitcoin is also on this list, and there is no guarantee that the recovery history until it gets a new ATH will be repeated.

Ideally, you can think of any safe haven if the crisis has been going on for some time and you've convinced yourself that your survival will be fine for a potential longer crisis.

As a Bitcoin HODLer, what would you advice your fellow HODLers should be holding during times of crisis? Cash/Fiat? That's probably a practical move, but that won't be a "safe haven" in my opinion, that would be a hedge to limit the drawdown from HODLing Bitcoin, the actual safe haven. Because,

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[rat03gopoh]

If I look at history, there is no investment instrument that maintains value at the beginning of the crisis. Bitcoin is also on this list, and there is no guarantee that the recovery history until it gets a new ATH will be repeated.

Ideally, you can think of any safe haven if the crisis has been going on for some time and you've convinced yourself that your survival will be fine for a potential longer crisis.

As a Bitcoin HODLer, what would you advice your fellow HODLers should be holding during times of crisis? Cash/Fiat? That's probably a practical move, but that won't be a "safe haven" in my opinion, that would be a hedge to limit the drawdown from HODLing Bitcoin, the actual safe haven. Because,

I said at the beginning of the crisis, not during the crisis. What I'm really worried about is that people are converting their wealth too soon into bitcoins which they consider "saev heaven", while the crisis is still just hearsay. It was suicide based on the history that I explained earlier.
On the other hand, I'm not saying bitcoin isn't a viable investment during a crisis, precisely it is a good opportunity to double wealth. The question is, could the average person think of increasing wealth under such circumstances?

[stompix]

Zoom out past the period of economic crises? No ser. You zoom out to see the REAL trajectory.

Yeah yeah!
You need to zoom in on the growth of 1000x from a few pennies to 10$ to ignore the fall from 60k to 25k!

Same as in another thread, show me the safe heaven part:

Bitcoin exploded in periods of really cheap money with interest under 1% and with inflation under 2%, for the first time in its history when it was faced with expensive money and high inflation is the moment it broke one of the rules of never going below the previous ATH and more importantly, it stopped acting independently. Bonds went up, the stock market went in red Bitcoin went in red too. But let's zoom out for others too:



Hmmm **** was 2$ in 2013 is now 200! If zooming out is the way to analyze things then *** shares are a hedge against inflation!

[Wind_FURY]

If I look at history, there is no investment instrument that maintains value at the beginning of the crisis. Bitcoin is also on this list, and there is no guarantee that the recovery history until it gets a new ATH will be repeated.

Ideally, you can think of any safe haven if the crisis has been going on for some time and you've convinced yourself that your survival will be fine for a potential longer crisis.

As a Bitcoin HODLer, what would you advice your fellow HODLers should be holding during times of crisis? Cash/Fiat? That's probably a practical move, but that won't be a "safe haven" in my opinion, that would be a hedge to limit the drawdown from HODLing Bitcoin, the actual safe haven. Because,

I said at the beginning of the crisis, not during the crisis. What I'm really worried about is that people are converting their wealth too soon into bitcoins which they consider "saev heaven", while the crisis is still just hearsay. It was suicide based on the history that I explained earlier.

On the other hand, I'm not saying bitcoin isn't a viable investment during a crisis, precisely it is a good opportunity to double wealth. The question is, could the average person think of increasing wealth under such circumstances?

OK, I believe that we're talking about different categories of crises. You're talking about the usual Boom/Bust Cycles that happen every time an economy is "over-heating" caused by too much money in circulation. What I'm talking about is a kind of financial crisis like what happened in Weimar, Germany, or to those countries that are currently suffering from hyperinflation. It's always better to be prepared and HODL some Bitcoin as a fall back than having none.

[Odusko]

Hello everyone,

there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?

what do you think?

In my country, our economy has been in recession for over two years now and there has been a high rate of inflation increasing rising cost of basic livelihood items and low wages and poor governmental policy from the central bank that has resulted in a weak currency value,  so in this kind of situation I think we are no longer waiting for in pending economic crisis since we over here have already been on recession for long now.
But talking on the role of Bitcoin in this kind of situation,  it point to the primary fact that Bitcoin is a saviour in economic crisis so at that,  knowing how to properly DCA makes you outstanding in using the Bitcoin economic cutting-edge formula.

[Renampun]

Hello everyone,

there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?

what do you think ?

it could say that bitcoin is being used as a safe haven by many people nowadays, I even made bitcoin as my safe haven several times when the issue of inflation occurred in my country, especially since the benchmark for the value of all world currencies is USD, so the USD / BTC pair is very good to be used as a benchmark for safe haven (often professional traders and investors take advantage of the moment of inflation to take profits in the market).

the scenario that occurs is usually when inflation occurs in your country, the exchange rate of your country's currency against the USD will decrease so that to buy bitcoins you have to use more money (a moment when many people are selling bitcoins) but when the value of your country's currency strengthens against USD then you only need to spend a little money to buy bitcoin (a moment when many buy bitcoin)

[yudi09]

there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?

I'm going to try to say yes, bitcoin is going to be an asset with potential as a safe haven of value against an economic crisis.
Bitcoin comes by providing transactions without a trusted third party and the presence of bitcoin responds to the global recession in 2008^[1].

The history of bitcoin with the global economic crisis that has occurred has made many experts who have conducted studies conclude that bitcoin is the best hedge.
As the best store of value, bitcoin's value in the long term will not decrease and great returns will be earned by those who choose the long term.
Don't look at the current price drop from 29k to 25k, but look at the price statistics from when it was first introduced to now and in the following days.

[19Nov16]

There is no safe place when a crisis occurs, many people think too much about Bitcoin, what we must understand is the concept of decentralization such as bitcoin of course also prone to drop when inflation occurs, it is better to save large amounts of assets in trusted commodities such as gold, Land and so on, and making cryptocurrencies is an alternative investment so that it does not make us panic when a bear market occurs.

[justdimin]

it could say that bitcoin is being used as a safe haven by many people nowadays, I even made bitcoin as my safe haven several times when the issue of inflation occurred in my country, especially since the benchmark for the value of all world currencies is USD, so the USD / BTC pair is very good to be used as a benchmark for safe haven (often professional traders and investors take advantage of the moment of inflation to take profits in the market).

the scenario that occurs is usually when inflation occurs in your country, the exchange rate of your country's currency against the USD will decrease so that to buy bitcoins you have to use more money (a moment when many people are selling bitcoins) but when the value of your country's currency strengthens against USD then you only need to spend a little money to buy bitcoin (a moment when many buy bitcoin)

It makes sense to use it that way because you are going to end up with a result that will profit you and a lot of people are lacking that. I believe that it will be important as we go ahead because it will definitely make a lot more people realize that fiat is not a safe place and bitcoin is a safe haven for them to keep their value.

I know that because it has crashes time to time like these ones, people are worried about it and I can understand the situation without a doubt. But that doesn't mean that we are going to end up with a bad result, the end result will be good without a doubt. That's why it's quite important to make sure that it goes as well as hoped for and could be profited with it without a doubt.

[OgNasty]

There is no safe place when a crisis occurs, many people think too much about Bitcoin, what we must understand is the concept of decentralization such as bitcoin of course also prone to drop when inflation occurs, it is better to save large amounts of assets in trusted commodities such as gold, Land and so on, and making cryptocurrencies is an alternative investment so that it does not make us panic when a bear market occurs.

You had me with the first line but I don’t think gold will be a very effective hedge in a major market collapse either. The good news is that I don’t think a major crash is in the cards because banks have inflation keeping their assets afloat at the moment and that may last long enough to kick the can down the road on this whole economic crash thing.

[G_Besar]

There is no safe place when a crisis occurs, many people think too much about Bitcoin, what we must understand is the concept of decentralization such as bitcoin of course also prone to drop when inflation occurs, it is better to save large amounts of assets in trusted commodities such as gold, Land and so on, and making cryptocurrencies is an alternative investment so that it does not make us panic when a bear market occurs.

Prone to crashes doesn't mean it's bad to own because Bitcoin doesn't crash forever, especially as you yourself know that Bitcoin is becoming increasingly popular with the concept of decentralization so that it is liked by many people. And this also makes Bitcoin have the potential to become the best asset in the crypto space which is very suitable as a long-term investment for everyone, although other assets such as gold and land are also not bad to own.

But you also have to understand that Land and Gold are very different assets to Bitcoin so you have to put them in a different place because they are not worthy of being compared or compared in any sector. What I see is that gold is only suitable for storing asset value in the long term because its increase tends to take a long time, while land will only increase if it is located in an area or place that is most liked by everyone. This means that not all land is the same price and expensive, because land that is difficult to reach by residents or the community at large will also be difficult to be expensive.

[KingsDen]

There is no safe place when a crisis occurs, many people think too much about Bitcoin, what we must understand is the concept of decentralization such as bitcoin of course also prone to drop when inflation occurs, it is better to save large amounts of assets in trusted commodities such as gold, Land and so on, and making cryptocurrencies is an alternative investment so that it does not make us panic when a bear market occurs.

It is true that many people think much about bitcoin and the way they present bitcoin will make you think that bitcoin has been right from the beginning of the world and it will be till the end of the world. Nothing lasts  forever including bitcoin, but there are things that have been proven to have stayed for very long and will continue to be in the economy for very long such as the gold that you mentioned.

The topic creator talked about the upcoming economic crisis and I wanted to read where he got the information from because the economic crisis that is hitting the world especially developing countries is worse and if there is more to come, that should be hell.

[Frankolala]

There is no safe place when a crisis occurs, many people think too much about Bitcoin, what we must understand is the concept of decentralization such as bitcoin of course also prone to drop when inflation occurs, it is better to save large amounts of assets in trusted commodities such as gold, Land and so on, and making cryptocurrencies is an alternative investment so that it does not make us panic when a bear market occurs.

The volatile nature of bitcoin makes it an hedge to inflation,compare to gold or land. Land and gold doesn't have the potential that bitcoin has and can't be used as an hedge to inflation. I will say Land has been there for a long time but presently most investors are using bitcoin as a store of value because they have seen it is the best hedge to inflation.

However,the profit that bitcoin will yield in 8yrs will be higher than gold of the same amount is used to invest for the same given period of time. Demand and supply is what controls bitcoin price and as time goes on as the adoption increases,so also will the price increases,and because it is limited in supply,the price of bitcoin will keep on increasing. Abear market will come and go and your bitcoin wouldn't depreciate in quantity,it remains the same. Don't use only one side to judge Bitcoin and this is why a long term investment is the best because I know that if you plan to invest on land and gold,you wouldn't sell after two years because it will be useless to make profit from it.

[milewilda]

There is no safe place when a crisis occurs, many people think too much about Bitcoin, what we must understand is the concept of decentralization such as bitcoin of course also prone to drop when inflation occurs, it is better to save large amounts of assets in trusted commodities such as gold, Land and so on, and making cryptocurrencies is an alternative investment so that it does not make us panic when a bear market occurs.

It is true that many people think much about bitcoin and the way they present bitcoin will make you think that bitcoin has been right from the beginning of the world and it will be till the end of the world. Nothing lasts  forever including bitcoin, but there are things that have been proven to have stayed for very long and will continue to be in the economy for very long such as the gold that you mentioned.

The topic creator talked about the upcoming economic crisis and I wanted to read where he got the information from because the economic crisis that is hitting the world especially developing countries is worse and if there is more to come, that should be hell.

Not all places or countries around the globe would really be suffering such economic crisis on which there might be places which do suffer but it wont really be that 100%. Economic crashes? Its never been new and as an individual then it would really be just that wise if you had already made out yourself that prepared for whatever things that would really be happening. Bitcoin could neither be or not as your safe haven but considering that we do speak about risks then there's no exemption and its true that there's no such thing about assurance on this world on which it would really be that still have the possibilities whether it would be still existing in future
years to come or not. Speaking about saving up your @ss in terms of problems then it would really be still that depending on how much you had invested of course and not really expecting something in return if you are
really just throwing up some few bucks on your Bitcoin holding or stash. This is why its better to be realistic if you do think up this way. Yes, it does have the potential that it might last long but doesnt mean that getting
rich with small amount of investment would really be happening into. Always put up into your mind that financial stability and sustainability would really be that not something an easy state for someone to reach or
acquired. It would really be taking lots of works and considerations too.

[Odohu]

I don't know why you are so sure there is an incoming economic crisis. What are the signs you are seeing that made you so sure?

Anyways, if there will be such economic crisis, I don't think it will be like the 2008 economic meltdown given that we are at the verge of seeing two powerful global financial system... being the status quo and the BRICS nation. If the later succeed in establishing the kind of economic cooperation they set out to achieve, it could result in a situation that a crisis in the US controlled economy might lead to an economic prosperity of the BRICS nation and vice versa. This is what I envisage in a bipolar world that is upon us already.

[el kaka22]

I do think that is the main reason why we are using it anyways. I mean why would we want to hold bitcoin? Is it because it looks cooler? Of course not, I buy bitcoin because it is an asset that will go up and be more valuable than other assets while fiat is dropping. Some people use stocks, some people use gold and silver, some people use real estate, but many people who realize that holding fiat is a bad move, will end up doing something.

I think it doesn't make sense to cause this much trouble personally, it should be important for you to realize that it is not going to end up with a result that you may want if you keep holding bitcoin. This is why it is much better if you just get bitcoin and hold that instead of fiat.

[STT]

I think trade will be done in BTC if other alternatives prove unable and extremes like national currency does fail then its already proven BTC is of use to the common people.   To be a safe haven is more then just transacting, that suggests stability beyond other things like just buying food that keeps or anything that is more stable then the failed currency.   I think most will not look at BTC as a safe haven but for speculation and various uses mostly digital, long term I think thats the market BTC is best suited to.

[_BlackStar]

I have convinced myself that bitcoin is the best investment asset or store of value compared to gold currently and in the long term. Bitcoin is performing well for an asset - I don't doubt it because bitcoin is being supported by the community as adoption increases. I don't know how skeptical you are about bitcoin's long-term potential - but try not to ignore the opportunity even if you can only afford to invest 10% of your overall budget in it.

If you have doubts about Bitcoin - then it's a good idea to diversify. This means that you can buy bitcoins for a certain budget amount and you can also have gold as another asset. Both of these investment assets are profitable - but you still have to consider the risks.

[cryptomaniac_xxx]

I don't know why you are so sure there is an incoming economic crisis. What are the signs you are seeing that made you so sure?

Barring everything that had happen to us in the past, like the pandemic and the war in the Europe, it's better to think that we might be in the economic crisis already.

Anyways, if there will be such economic crisis, I don't think it will be like the 2008 economic meltdown given that we are at the verge of seeing two powerful global financial system... being the status quo and the BRICS nation. If the later succeed in establishing the kind of economic cooperation they set out to achieve, it could result in a situation that a crisis in the US controlled economy might lead to an economic prosperity of the BRICS nation and vice versa. This is what I envisage in a bipolar world that is upon us already.

Actually we did experience, after the pandemic, perhaps last year, we have seen some countries really going into the brink of meltdown. We have heard BRICS for so many years though, and that they should be the next big think around the world. But so far, it has not proven anything. China though is really coming up to challenge the US and with that we should be ready and at least hedge some of our wealth into bitcoin by now.

[Minecache]

I don't know why you are so sure there is an incoming economic crisis. What are the signs you are seeing that made you so sure?

Barring everything that had happen to us in the past, like the pandemic and the war in the Europe, it's better to think that we might be in the economic crisis already.

We are in an economic crisis and are slowly coming out of it. But inflation and crisis are part of the economy and it will come back in the future, everything is cyclical and this is not the first time the world has had a crisis, inflation. Therefore, it is necessary and not wrong for us to prepare well for the future.
In the short term, I would be skeptical of bitcoin but in the long term, bitcoin is actually a better hedge against inflation than gold.

Anyways, if there will be such economic crisis, I don't think it will be like the 2008 economic meltdown given that we are at the verge of seeing two powerful global financial system... being the status quo and the BRICS nation. If the later succeed in establishing the kind of economic cooperation they set out to achieve, it could result in a situation that a crisis in the US controlled economy might lead to an economic prosperity of the BRICS nation and vice versa. This is what I envisage in a bipolar world that is upon us already.

Actually we did experience, after the pandemic, perhaps last year, we have seen some countries really going into the brink of meltdown. We have heard BRICS for so many years though, and that they should be the next big think around the world. But so far, it has not proven anything. China though is really coming up to challenge the US and with that we should be ready and at least hedge some of our wealth into bitcoin by now.

A multipolar world is a certainty in the future, but that does not mean inflation and crises will disappear. As long as the government still uses fiat money and money printing is not strictly controlled, inflation will repeat in the future even if we have BRICS.