How would the bitcoin price behave during a monetary collapse?

[The Cryptovator]

We always compare Bitcoin values in fiat. So in case the fiat system collapses, we may face a collapse for Bitcoin as well. We can't use Bitcoin directly in the current economic system; if we could, then Bitcoin would skyrocket during inflation. Bitcoin has also become a part of the global economy, so if the entire ecosystem collapses, we can't expect something different from Bitcoin as well. So my thoughts are that if we want to make a strong Bitcoin ecosystem, then the global economy must be strong as well.

[1715199322]

1715199322

[1715199322]

1715199322

[shield132]

We always compare Bitcoin values in fiat. So in case the fiat system collapses, we may face a collapse for Bitcoin as well. We can't use Bitcoin directly in the current economic system; if we could, then Bitcoin would skyrocket during inflation. Bitcoin has also become a part of the global economy, so if the entire ecosystem collapses, we can't expect something different from Bitcoin as well. So my thoughts are that if we want to make a strong Bitcoin ecosystem, then the global economy must be strong as well.

Some people think that if the fiat system collapses, Bitcoin will become a new great escape, e.g. people will move towards Bitcoin and find hope in it. I think that if the fiat system collapses shortly, Bitcoin will collapse too because we decide its price in USD. When I want to buy a beer and pay with Bitcoin, I pay the USD equivalent of BTC, beer doesn't have a fixed price of 0.0001 BTC for example. If there comes a time when we will start valuing things in Bitcoin alternatively instead of converting USD to BTC at the moment you want to buy things, then we can say that if the fiat system collapses, people might find hope in Bitcoin and stick to it but Bitcoin can't handle large volume of transactions.
Right now, I would say that if fiat collapses, no one will have time to start thinking about Bitcoin because the collapse will cause a disaster in the world.

[Inwestour]

We always compare Bitcoin values in fiat. So in case the fiat system collapses, we may face a collapse for Bitcoin as well. We can't use Bitcoin directly in the current economic system; if we could, then Bitcoin would skyrocket during inflation. Bitcoin has also become a part of the global economy, so if the entire ecosystem collapses, we can't expect something different from Bitcoin as well. So my thoughts are that if we want to make a strong Bitcoin ecosystem, then the global economy must be strong as well.

Actually, the price of Bitcoin is constantly growing, it is clear that during periods of a bear market it can fall significantly, but each time it stops at higher values. I think that inflation plays an important role in this, and if the system is subjected to some kind of collapse, then perhaps at first the price of Bitcoin will fall along with the entire market, since news has always influenced the cryptocurrency market, but over time the situation will level out, and Bitcoin will continue to rise in price.

[cr1776]

This article talks a bit about why there will be more inflation.  Although it doesn't specifically mention using bitcoin as a hedge, the clear implication is that you want gold, or digital gold.  Protection from inflation is one use for bitcoin (and gold/other PMs), thankfully there are others, but it is smart to protect oneself now.  Having an ETF as an option is a good thing for people who want some protection but want it in a brokerage account.  Sure, they could do it at coinbase etc, but just because you can code in binary or machine language doesn't mean you shouldn't make it easier and use a high level language.


https://www.zerohedge.com/markets/us-living-borrowed-time

History confirms this pattern in one debt-failed nation after the next.

In fact, and without exception, currencies are always sacrificed to save a broken regime. And folks, our regime is objectively broke(n).

Thus, for those who know the math (above), and the history of yesterday, preparing for tomorrow is simple.

Projected rate cuts (and the scent of more synthetic liquidity) can and (already have) sent inflated risk assets higher as the inherent purchasing power of the currency gets weaker.