How would the bitcoin price behave during a monetary collapse?

[WeThePe0ple]

With inflation and global debt skyrocketing, we must prepare for the day that the monetary system fails. It is basically a mathematical certainty that it will.

In 2008 we were much closer to bank failure than people realise. Jim Rickards, one of the USA's leading economists and financial advisor of the Pentagon, negotiated the bail out with the federal reserve in person. They were 2 hours away from closing every bank in the USA.

We're now more than a decade later, and the national debt has tripled. Most experts I know, say that a new 2008 is happening within 5 years and this time there can be no bail out. The monetary system will go dark. Banks closed, funds lost, and people losing everything.

Imagine that during a financial meltdown there is a cascade of banks failing and closing. What would happen to the bitcoin price?
Would it rise because of hyperinflation or would it crash because there is no liquidity to enter the markets?

[1714658880]

1714658880

[Odohu]

With inflation and global debt skyrocketing, we must prepare for the day that the monetary system fails. It is basically a mathematical certainty that it will.

In 2008 we were much closer to bank failure than people realise. Jim Rickards, one of the USA's leading economists and financial advisor of the Pentagon, negotiated the bail out with the federal reserve in person. They were 2 hours away from closing every bank in the USA.

We're now more than a decade later, and the national debt has tripled. Most experts I know, say that a new 2008 is happening within 5 years and this time there can be no bail out. The monetary system will go dark. Banks closed, funds lost, and people losing everything.

Imagine that during a financial meltdown there is a cascade of banks failing and closing. What would happen to the bitcoin price?
Would it rise because of hyperinflation or would it crash because there is no liquidity to enter the markets?

I have tried so hard to picture what the implications of banks and the global monetary system failing will be, the only answer making sense now is trade by barter. But is this possible in the present time given the explosive population of the world?

On the role of Bitcoin in a time like that, well, there is no way Bitcoin will completely replace fiat because we are still far from mainstream adoption of Bitcoin, the bottlenecks such as high fees, congestion such as we have seen of recent and many others are still there. However,  Bitcoin price will be so high because people will prefer to keep their money in Bitcoin rather than the banks at least until there is some stability within the banking system. 

[PytagoraZ]

Imagine that during a financial meltdown there is a cascade of banks failing and closing. What would happen to the bitcoin price?
Would it rise because of hyperinflation or would it crash because there is no liquidity to enter the markets?

I am sure that what will happen in the next few years is something that is regulated, the financial system will not collapse unless there are parties who want to change the financial system. I believe we will never return to the barter system, and if the fiat system collapses then the system that might be implemented is digital currency or cryptocurrency.

I'm not sure bitcoin is an alternative to replace fiat system, but if the fiat system collapses and is replaced by digital currency or cryptocurrency then bitcoin will have a positive impact because of it. So let's find out what the global elite has planned for new world order  
 

[Hispo]

Well, if we consider that Bitcoin mostly has been some correlation with the price of the stocks of the United States (specially those related to the technological sector) then it would be fair to assume that in the event of a major economical collapse in the United States of America, the price of Bitcoin would drop (together with the price of the stock market) but it would soon recover because people will try to find alternatives to safeguard their money away from the failed banking system which has collapsed.
It is interesting the fact you mention there is not going to be a wide bail out similar to that one we saw back in the 2008, because this last year the feredal goverment was not willing to offer a bail out to those banks who suddenly ran out of funds, like the Silicon Valley Bank.
President Biden was shift to day the clients of the bank would get their money back, but the bank itself would close down.
Perhaps it is an anticipation or a clue on how the Federal government of the USA has changed their attitude towards banks and their imminent clousure when they do not do things right. Though, I doubt they would deny a second bail out to the banks in the case of another crisis, it would be in the detriment of the trust of American banking and the system of private Banking in that country. Not much to gain by allowing it to happen, in my opinion.

[Mrbluntzy]

What would happen to the bitcoin price?
Would it rise because of hyperinflation or would it crash because there is no liquidity to enter the markets?

I doubt if any body would know what will happen. No body has the ability to teleport to the future and find out what is waiting to come. People can only keep assuming what they think will happen, by then it may not even happen as so many people have thought it be.

[GreatArkansas]

I don't see Bitcoin will be affected by this. In at first place, this kind of problem is one of the many that Bitcoin is solving.
Maybe at first or beginning of that collapse Bitcoin will react, especially it is the first time for Bitcoin to experience it and after that, it will bounce back then continue the run upward.

[thecodebear]

If it happened soon, like in the next decade or so, I think Bitcoin price would collapse because market participants would be too scared and would be trying to pull money out of everything. They'd be trying to move money as quick as they can to their bank account and then withdraw it for cash if the banks are failing. Because to the vast majority of people Bitcoin is still just some risky tech stock, that's literally what they think it is. Hell I still see articles online where it is referred to as a "stock" lol.

Another 10 years beyond that though, and Bitcoin might be trusted enough that so that maybe there would be an initial crash but then people would be moving whatever money they could to bitcoin very quickly.

Basically once the education of the general public is such that people understand what Bitcoin actually is, so that the narrative switches from "risky tech investment" to "hard money, like gold but much better", that's the point at which I think Bitcoin would ultimately do well in a major global monetary collapse. But yeah I'd put that state of Bitcoin acceptance at probably 20 years from now, maybe longer.

[Solosanz]

There's a transition between this year until the monetary system collapse, so when there are many bad news comes up and banks going to bankrupt, this will make people to find a way to hold their funds. Most people will buy gold, some of them will buy either stock or Bitcoin.

Stock will fail too, so it's only both gold and Bitcoin are still survive. These two assets will be very valuable, it just like someone who have a big house and lambo, everyone wants it.

[philipma1957]

With inflation and global debt skyrocketing, we must prepare for the day that the monetary system fails. It is basically a mathematical certainty that it will.

In 2008 we were much closer to bank failure than people realise. Jim Rickards, one of the USA's leading economists and financial advisor of the Pentagon, negotiated the bail out with the federal reserve in person. They were 2 hours away from closing every bank in the USA.

We're now more than a decade later, and the national debt has tripled. Most experts I know, say that a new 2008 is happening within 5 years and this time there can be no bail out. The monetary system will go dark. Banks closed, funds lost, and people losing everything.

Imagine that during a financial meltdown there is a cascade of banks failing and closing. What would happen to the bitcoin price?
Would it rise because of hyperinflation or would it crash because there is no liquidity to enter the markets?

I think millions would die all around the world.  Likely no one would give fucks about BTC.

Or all crypto.    At this point in time crypto is 1.2 or maybe 1.3 trillion

the world cash number is well over 150 trillion

For your idea to occur and not have endless terrible killiing

Crypto would need to be at least 50 trillion and cash maybe 200 trillion

[MFahad]

With inflation and global debt skyrocketing, we must prepare for the day that the monetary system fails. It is basically a mathematical certainty that it will.

In 2008 we were much closer to bank failure than people realise. Jim Rickards, one of the USA's leading economists and financial advisor of the Pentagon, negotiated the bail out with the federal reserve in person. They were 2 hours away from closing every bank in the USA.

We're now more than a decade later, and the national debt has tripled. Most experts I know, say that a new 2008 is happening within 5 years and this time there can be no bail out. The monetary system will go dark. Banks closed, funds lost, and people losing everything.

Imagine that during a financial meltdown there is a cascade of banks failing and closing. What would happen to the bitcoin price?
Would it rise because of hyperinflation or would it crash because there is no liquidity to enter the markets?

I don't think this kind of financial crisis would ever happen again. I don't remember what happened in 2008. but I believe no matter how worse the situation gets. banks will always find a way to bail them out.  they will not let the economy 100% collapse.
and if we just imagine something like that happening than I think Bitcoin will be hugely impacted too. if fiat money loose all it's value due to economic collapse than it doesn't matter if a bitcoin price go to $1 million dollar. becasue than $1 million dollar is worthless so bitcoin will be worthless too.

[serjent05]

Imagine that during a financial meltdown there is a cascade of banks failing and closing. What would happen to the bitcoin price?

Several things may happens and it all depends on the reactions of the financial sector and people.  If the financial sector and people put their eyes or attention on Bitcoin and shift their activity to taking advantage of the Bitcoin market and features, surely, the price of Bitcoin will surge since there will be more users and demands for the Bitcoin market.  But if the financial sector and people focus their attention on somewhere else, even with the banks and many other financial institutions collapse, it won't have any effect on the Bitcoin market because the money or funds that naturally flows on the banking sector is put on something else and not on the Bitcoin market.

The financial meltdown that makes banks fail and close does not automatically means that people will shift to BTC since there are many options to chose.

Would it rise because of hyperinflation or would it crash because there is no liquidity to enter the markets?

As I stated it depends on how people react to the situation.  Bitcoin will surge if they make Bitcoin as an alternative else different results will happen.

[bluebit25]

(...)Imagine that during a financial meltdown there is a cascade of banks failing and closing. What would happen to the bitcoin price?
Would it rise because of hyperinflation or would it crash because there is no liquidity to enter the markets?

Prepare in advance for bad things, but does it help any more? I feel like even if that situation actually happens, we don't know exactly what impact bitcoin will have.

But a little beyond this, it is about returning to live with nature and leaving social complexity, it is necessary to return to a simple time.

But they are just stories in the imagination, and it is true that the economy will still exist, the conspiracy theories are spread so that they can operate on that theory and let the debate add to the excitement of the field. And bitcoin will still exist in a way that people have to accept it.

[fuguebtc]

Many predictions have been made about the collapse of fiat currencies and banks over the years, but have we ever seen it happen? Or is it just our wishful thinking and what's more funny is that since bitcoin was born, bitcoiners have had more and more such predictions and even wished it would happen. But honestly, I don't think that will happen and even if it does, surely governments will have an alternative to the current fiat system.

As for bitcoin, it's hard to say anything, like we used to believe that bitcoin could fight inflation but so what then? The 2022 economic crisis also caused bitcoin to be heavily dumped, and every time the Fed raises interest rates, bitcoin is affected.

[adaseb]

It’s hard to say how crypto will respond. Remember what happened during Covid.

Stocks were crashing and so was crypto. It wasn’t until stocks reversed trend and they started to be correlated. So if there is a big crash, crypto should follow stocks and decline.

But if the dollar is devalued then obviously stocks and crypto should pump. However who knows when this will happen. US economy now is very strong and job market is also strong. Since this is happening we won’t get a recession anytime soon.

[0t3p0t]

Imagine that during a financial meltdown there is a cascade of banks failing and closing. What would happen to the bitcoin price?
Would it rise because of hyperinflation or would it crash because there is no liquidity to enter the markets?

There is really a high possibility that the crisis happened way back year 2007-2009 will repeat itself in the future and that is what we are supposed to prepare for.

Since crypto is now became the alternative of fiat I think Bitcoins price will pump this time since most investors might convert their fiat holdings to other assets like precious metals to protect their investments from the possible collapse.

I disagree with the idea of having no liquidity on the cryptocurrency market during that time because investors will surely pour their crypto investments before the crash will come. This is just my speculation and this might be inaccurate.

[DapanasFruit]

Imagine that during a financial meltdown there is a cascade of banks failing and closing. What would happen to the bitcoin price? Would it rise because of hyperinflation or would it crash because there is no liquidity to enter the markets?

As for the USA economy, I am 100% sure that it would be experiencing a catastrophic collapse with much more magnitude than what happened in 2008 - this is a big question of WHEN and not of IF. Now, when this can happen the USA Dollar will be heavily affected and coupled with dedollarization movement lead by China, Russia and their allies, there is that big chance that its value will dramatically fall putting more pressures on inflation...now people would be looking for good ways to protect their assets from melting down and that is where Bitcoin can come in handily and if this can be the case then we can expect the BTC price to skyrocket.

[blckhawk]

Many predictions have been made about the collapse of fiat currencies and banks over the years, but have we ever seen it happen? Or is it just our wishful thinking and what's more funny is that since bitcoin was born, bitcoiners have had more and more such predictions and even wished it would happen. But honestly, I don't think that will happen and even if it does, surely governments will have an alternative to the current fiat system.

As for bitcoin, it's hard to say anything, like we used to believe that bitcoin could fight inflation but so what then? The 2022 economic crisis also caused bitcoin to be heavily dumped, and every time the Fed raises interest rates, bitcoin is affected.

It's predictions and yes some have seen it happen, remember Great Depression? I'm sure that there's some grandparents that have witnessed that event that crippled the US economy so I don't think that it's something that's mythical. Also, there's a lot of civilizations before us that have an economy, they're a proof that an economy can collapse because if that's not the case then how come they're being buried under dirt and are studied by archaeologists today, they would exist right now if an economical collapse isn't a thing that really happens. The people that are wishing for the collapse, don't know any better, if the economy collapses, there's a possibility that the collapse will also drag down bitcoin.

[davis196]

With inflation and global debt skyrocketing, we must prepare for the day that the monetary system fails. It is basically a mathematical certainty that it will.

In 2008 we were much closer to bank failure than people realise. Jim Rickards, one of the USA's leading economists and financial advisor of the Pentagon, negotiated the bail out with the federal reserve in person. They were 2 hours away from closing every bank in the USA.

We're now more than a decade later, and the national debt has tripled. Most experts I know, say that a new 2008 is happening within 5 years and this time there can be no bail out. The monetary system will go dark. Banks closed, funds lost, and people losing everything.

Imagine that during a financial meltdown there is a cascade of banks failing and closing. What would happen to the bitcoin price?
Would it rise because of hyperinflation or would it crash because there is no liquidity to enter the markets?

The fiat monetary system won't "fail" in terms of banks closing down and the people losing their savings.
The real "failure" will be the further devaluation of the US dollar. The Federal Reserve will keep printing money in order to support the commercial banks and to cover the US federal deficit, so the value of the US dollar will keep going down. Less and less countries will use US dollars for international transactions and the USD will soon turn into the equivalent of toilet paper.
Bitcoin is scarce, which means it's deflationary, which means that the people will view it the same way as they view gold. Gold prices kept going up during the last 50 years mostly because the US dollar is losing value. The BTC price is supposed to increase as well.

[Synchronice]

With inflation and global debt skyrocketing, we must prepare for the day that the monetary system fails. It is basically a mathematical certainty that it will.

In 2008 we were much closer to bank failure than people realise. Jim Rickards, one of the USA's leading economists and financial advisor of the Pentagon, negotiated the bail out with the federal reserve in person. They were 2 hours away from closing every bank in the USA.

We're now more than a decade later, and the national debt has tripled. Most experts I know, say that a new 2008 is happening within 5 years and this time there can be no bail out. The monetary system will go dark. Banks closed, funds lost, and people losing everything.

Imagine that during a financial meltdown there is a cascade of banks failing and closing. What would happen to the bitcoin price?
Would it rise because of hyperinflation or would it crash because there is no liquidity to enter the markets?

It's very hard to predict what will happen because monetary collapse won't happen tomorrow but Bitcoin gets ETF approval and more adoption. Overall, what happens in similar situations? Gold becomes the most prioritized asset and people move from paper to gold because it's considered as a one of the safest asset. There was no bitcoin in the past and it's natural instinct and habit to invest in Gold but the problem is, we can't predict whether we will see a surprise and rich people will invest significant portion in Bitcoin or they'll traditionally stick with Gold.

[m2017]

With inflation and global debt skyrocketing, we must prepare for the day that the monetary system fails. It is basically a mathematical certainty that it will.

The problems inherent in the traditional monetary system exist and are accumulating. Some financial analysts predict this very collapse of the monetary system. This moment is being delayed, but one day it may happen (as it has already happened more than once).

In 2008 we were much closer to bank failure than people realise. Jim Rickards, one of the USA's leading economists and financial advisor of the Pentagon, negotiated the bail out with the federal reserve in person. They were 2 hours away from closing every bank in the USA.

Some large banks still had to go bankrupt and the consequences of 2008 significantly slowed down the development of the entire world economy.

We're now more than a decade later, and the national debt has tripled. Most experts I know, say that a new 2008 is happening within 5 years and this time there can be no bail out. The monetary system will go dark. Banks closed, funds lost, and people losing everything.

I heard a couple of years ago that a global crisis was expected to occur within the next 3-5 years. The world is probably rapidly moving in that direction, but with luck, financial institutions will be able to delay this moment. But I don’t think this will happen without stopping. One day, the tangle of problems will be so large that no restraining measures will help.

Imagine that during a financial meltdown there is a cascade of banks failing and closing. What would happen to the bitcoin price?
Would it rise because of hyperinflation or would it crash because there is no liquidity to enter the markets?

Nobody knows for sure. There are 2 possible scenarios here: bitcoin will also collapse, bitcoin will rapidly increase. Based on these estimated forecasts, you can choose the appropriate investment behavior model for yourself. Or place a bet on bitcoin and accumulate as much as you can, thanks to which you will be in profit. Or, get rid of bitcoin, because the global crisis will also reduce the cost of your investments.