Can Bitcoin be a good investment over stocks in a recession period ?

[krishnaverma]

Bitcoin tends to correlate with the stock market over the last few years. So I think that in an event of a US stock market crash, Bitcoin will follow suit. However, as Bitcoin is usually not related to factors affecting the stock market, Bitcoin might recover faster. It may not happen, it's impossible to predict. So I wouldn't bet on it, but there's a certain potential there.

This is not true in my country. Stock market was completely crashed during lockdown but crypto was not affected by same effect during that period. Currently, stock market is on peak but bitcoin has been stagnant over last 2-3 months.

[Smack That Ace]

Except it's a global recession, bitcoin would be a better investment than stock. Bitcoin is not based in a particular country or country so the recession of one country won't crumble the price of Bitcoin. On the other hand, stocks are shares of companies and these companies are based in a country, so if that country goes into a recession, the company suffers thereby causing the value of their shares to drop because they won't be able to make much profit.
So if there is a recession in your country, in my opinion, bitcoin is the better investment.

Both stock and bitcoin are very volatile, but I don't believe it's fitting to compare stocks of all the companies to bitcoin alone. That's like comparing the whole cryptocurrencies to the stock of a company whose stocks are performing well.

I think that's also true during a global recession, like what we're experiencing now. After bitcoin was severely dumped in 2022 when we were at the height of the economic downturn, and it has recovered and grown better than any stock in the world to date. If someone had faith in bitcoin and had bought it when it was $15k-$17k, they would now be making almost 4x profits, which no other stock can do. So, in my opinion, bitcoin is always an investment that brings better returns than stocks in all economic situations, not just recessions.
Inflation is showing signs of going down and we are waiting for the Fed to lower interest rates and the world economy to enter a new growth phase, and I believe bitcoin will also grow better than stocks in the near future.

[Assface16678]

Bitcoin tends to correlate with the stock market over the last few years. So I think that in an event of a US stock market crash, Bitcoin will follow suit. However, as Bitcoin is usually not related to factors affecting the stock market, Bitcoin might recover faster. It may not happen, it's impossible to predict. So I wouldn't bet on it, but there's a certain potential there.

This is not true in my country. Stock market was completely crashed during lockdown but crypto was not affected by same effect during that period. Currently, stock market is on peak but bitcoin has been stagnant over last 2-3 months.

Yeah, true. During this recent pandemic, we can see how the economies of different countries have gone down, and many businesses have been affected. So many have also closed their businesses. This time also, we can see how powerful bitcoin investment is because there are just slight changes or effects to bitcoin and other crypto currencies. While stock markets were not in a good state at that time, well, that's a given because we are in a pandemic, so there has been no movement in the economy, and businesses are closed in the meantime. That's why I proved that bitcoin is a good choice if you want an investment that is risky. Yes, but part of that is that without taking risks, you are not good enough to handle bitcoin. Stock markets are still a thing right now, but for me, bitcoin is the best choice, and crypto currency as a whole will be a good thing to explore and invest in.

[TheUltraElite]

I believe Bitcoin is way more volatile than stocks. 

Indeed as compared to stocks, it is more volatile. I have stocks mostly for the long term and so is bitcoin, so they more or less even out for me.

During a recession, anything can literally happen, but we tend to see the bear markets mostly as companies are being sold, but bitcoin cannot be predicted and it should be carefully monitored to identify potential buying or selling points. If one is able during a recession, they should make sure emergency needs are fulfilled first.

Then focus on increasing their investments. Stocks are bonds might become cheap, but nobody can say about bitcoin, like the pandemic did not affect the bitcoin price much.

[Antotena]

Can Bitcoin be a good investment over stocks in a recession period ? Also, explain why do you feel so ?

Conventionally, Bitcoin is supposed to perform better than stocks in difficul times, by the way people used to spread the gospel as been decentralized, been more secured and the best cryptocurrency that ever but right now Bitcoin is too coreleted with them when Bitcoin is supposed to be growing and doing the opposite of what stocks are doing.

On the micro level, things like rate released should not even bother them, even the inflation because Bitcoin is none for performing better and used as a hedge against inflation but look at those things, they are what Bitcoin fear to see. These things are factors to fiat but wait for US market to open, if it happen on a wrong time, stock market does crash and so does Bitcoin, sometimes I look at Bitcoin and begin asked some questions like the existence of Bitcoin and purpose.

[Yatsan]

Can Bitcoin be a good investment over stocks in a recession period ? Also, explain why do you feel so ?

Well as far as I understand and have read before, Bitcoin and stocks can be very different, most of all during a recession. While, Bitcoin is a very volatile tool that can pose risks but also offers opportunities and it tends to move independently of traditional financial markets, its price is influenced by broader economic conditions and market sentiment, stabilizing the momentum in profitable stocks across diversification, especially well-established companies, where growth potential over the long term is much higher. Stocks with good fundamentals during the downturn are well positioned to sustain the economic headwinds and always recover later. Sometimes, bitcoin is described as an inflation hedge that can be viable in a recession when currency depreciation is the norm, but bitcoin itself cannot be considered an anti-inflation hedge, and its value can be speculative greater than. Ultimately, how you choose between bitcoin and stocks depends on your risk tolerance, investment goals and personal situation. Therefore, it is important to understand the banks and the underlying risks that will affect any investment decision.

[laijsica]

Bitcoin tends to correlate with the stock market over the last few years. So I think that in an event of a US stock market crash, Bitcoin will follow suit. However, as Bitcoin is usually not related to factors affecting the stock market, Bitcoin might recover faster. It may not happen, it's impossible to predict. So I wouldn't bet on it, but there's a certain potential there.

This is not true in my country. Stock market was completely crashed during lockdown but crypto was not affected by same effect during that period. Currently, stock market is on peak but bitcoin has been stagnant over last 2-3 months.

In any investment, your capital carries risk and you have to plan with timing and opportunity. Investing in the stock market usually fluctuates in value given that some real asset is likely to remain fairly stable, but the Bitcoin market is often priced with demand. Given the increasing demand for Bitcoin as a volatile precious asset, its price volatility is very high and can offer high profits for investors while also carrying high risks. However, your investment decision must prioritize profit as well as protection of capital, so extensive research is required before making your investment decision to minimize unintended investment risks.

[tabas]

While Bitcoin is listed on many centralized exchanges, stocks are also in several brokers. It's possible that when there's a recession, the government can give an outright call to close down all withdrawals from the stock markets. And that's one of the reasons why your money in the stocks cannot be taken in times of recession period. Whilst for Bitcoin, even these centralized exchanges are going to be mandated not to allow transactions, we can go back to the typical times on how Bitcoin was used, as a currency. So, if it's about Bitcoin as an investment, it's actually good and not just only that, as a currency in a recession period. It's also the reason why BTC was made after the 2009 economic crisis.

[Questat]

I believe Bitcoin is way more volatile than stocks. 

Indeed as compared to stocks, it is more volatile. I have stocks mostly for the long term and so is bitcoin, so they more or less even out for me.

During a recession, anything can literally happen, but we tend to see the bear markets mostly as companies are being sold, but bitcoin cannot be predicted and it should be carefully monitored to identify potential buying or selling points. If one is able during a recession, they should make sure emergency needs are fulfilled first.

Then focus on increasing their investments. Stocks are bonds might become cheap, but nobody can say about bitcoin, like the pandemic did not affect the bitcoin price much.

Bitcoin price is really unpredictable. Sometimes it can be easily affected with the different global news and events but there are also times that its price remains untouchable. So when you compared it to stocks where it’s proven highly volatile than bitcoin, bitcoin will always make an edge when price and value is concerned. The key here is as long as you tend to be more patient for the longest time possible, you will certainly sell at a huge profits and won’t be selling at a massive loss.

[tread93]

Can Bitcoin be a good investment over stocks in a recession period ? Also, explain why do you feel so ?

Because the market for both can change so much in any given day it’s really hard to say what the economic conditions are. As of recently when the us stock market had a record loss day it didn’t hold up as it also fell in price in comparison, but then again it those stocks just rebounded a few days later and Bitcoin is still struggling to get back past the 62k mark or higher back up into the 70s

[avikz]

Can Bitcoin be a good investment over stocks in a recession period ? Also, explain why do you feel so ?

During a recession period, Bitcoin is a great investment. Because usually such kind of alternative assets give you capital protection. So you can choose either Bitcoin or Gold during recession to keep your money safe.

But at the same time if you are not taking the opportunity of a recession, then you are a stupid! Recession is the best time to buy stocks of companies with good fundamentals. If you are not focusing there and only investing in Bitcoins, then you are losing big time.