Would people pour their cash into bitcoin given a stock market crash?

[counter]

intersting question but there would be so much chaos if that happened I'm not so sure it would work out that way right away. 

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[aminorex]

Either bitcoin itself or an IMF crypto is likely to be used for international settlements and primary reserves 5 to 10 years from now.  It would be foolish to create a novel crypto, with an untested codebase and protocol, and place it in such a central role in the global economy.  Therefore, I expect bitcoin to fulfill that role.

[boumalo]

Either bitcoin itself or an IMF crypto is likely to be used for international settlements and primary reserves 5 to 10 years from now.  It would be foolish to create a novel crypto, with an untested codebase and protocol, and place it in such a central role in the global economy.  Therefore, I expect bitcoin to fulfill that role.

We are hoping for that but there is some potential for money transfer or as a currency as well

[STT]

Your answer is on Exter's triangle and where can you place btc as speculative or utility I guess.    In a pullback or recession, people stick to the essentials.  Gold is only one of them as it is a solid asset, btc is a pretty flightly high velocity medium

[bryant.coleman]

In case of a stock market crash, people are likely to divert their investments to safe assets. With Bitcoin being considered as one of the most unsafe assets, I do't expect it to have a net gain in the likely event of a financial and economic crisis. So we will see the reduction in the USD vs BTC exchange rate, although with higher than average volumes.

[Erdogan]

deflation typically precedes hyperinflation.  in that scenario, expect bitcoin to decline during the early deflationary phase, and rise in anticipation of the hyperinflationary phase.

I agree. Just to add something: The reason for a price deflation is a loss of trust in debt, that leads to debt clearing and hence reduction of the money supply.

The next step is desperate literal printing of notes, and of course the government will still loan in open and covert ways. The same goes for privileged businesses.

When the tide turns, we will have excess money supply, and probably some years of high inflation (20 % p.a.)

In the process, the production structure will be distroyed (capital allocated to the wrong things) and lower wealth for everyone. That means stagflation.

[STT]

we will see the reduction in the USD vs BTC exchange rate

The thing is there is a point where the jelly mould gets turned upside down and the impossible happens, the liquid has become a solid and everything is reversed.   It is possible, as unlikely as it seems for BTC to rise in an extreme case of instability.

People say if deflation they will print money, well they already have done that.  That liquidity is mostly stored in bonds now and the USA has one of the lowest average turnovers in its debt in the world.  I think its about 4 years. Why would that be?  well its cheaper.
  If you fix a rate for many years, it rises to account for unknown and short term to borrow we know the rate goes as low as zero almost.  So its been policy to hold 17 trillion or so on very tight turnaround.  

   The other people who did this were the banks in 2008, including Lehmans; if they had financed 20 year even 10 year bonds as their debt they'd operating now I think.  But gov is special right?  no not in the end.
So the question is flawed, not stock sell off, bond sell off.    Forex > Bond > Shares > BTC   Thats the order and trillions are held in bonds and you know its trillions because that debt is a populations burden, not nearly as much is held as shares and its mostly private debt.  They just go broke, a stock crash is not the dam breaking you might think it is

 The big deal is  and afaik always has been debt financing and interest rates, if that breaks down as well it might then BTC  can rise substantially and personally I think it will  ( so long as the network stays true till then)


If you look at the triangle, diamonds are quite high up.  Would BTC rise if diamonds had a price crash ?  Not really a comparable substitute or necessary with other levels stable.   But each level you go lower it gets more serious if it fails and the possibility for BTC to come of age and prove itself becomes greater, can it be useful and reliable or not
The chart was made by the Fed before they joined the dark side :p

[BBmodBB]

we will see the reduction in the USD vs BTC exchange rate

The thing is there is a point where the jelly mould gets turned upside down and the impossible happens, the liquid has become a solid and everything is reversed.   It is possible, as unlikely as it seems for BTC to rise in an extreme case of instability.

People say if deflation they will print money, well they already have done that.  That liquidity is mostly stored in bonds now and the USA has one of the lowest average turnovers in its debt in the world.  I think its about 4 years. Why would that be?  well its cheaper.
  If you fix a rate for many years, it rises to account for unknown and short term to borrow we know the rate goes as low as zero almost.  So its been policy to hold 17 trillion or so on very tight turnaround.  

   The other people who did this were the banks in 2008, including Lehmans; if they had financed 20 year even 10 year bonds as their debt they'd operating now I think.  But gov is special right?  no not in the end.
So the question is flawed, not stock sell off, bond sell off.    Forex > Bond > Shares > BTC   Thats the order and trillions are held in bonds and you know its trillions because that debt is a populations burden, not nearly as much is held as shares and its mostly private debt.  They just go broke, a stock crash is not the dam breaking you might think it is

 The big deal is  and afaik always has been debt financing and interest rates, if that breaks down as well it might then BTC  can rise substantially and personally I think it will  ( so long as the network stays true till then)


If you look at the triangle, diamonds are quite high up.  Would BTC rise if diamonds had a price crash ?  Not really a comparable substitute or necessary with other levels stable.   But each level you go lower it gets more serious if it fails and the possibility for BTC to come of age and prove itself becomes greater, can it be useful and reliable or not
The chart was made by the Fed before they joined the dark side :p

i'm still hodling lehman bro bonds lmao!!!=O

[tooil]

When people lose trust, they will hang out to what they can hold in their hand.

Gold is still the insurance of last resort.

[STT]

i'm still hodling lehman bro bonds lmao!!!=O

I hope they are paying you back then.  I read recently some Leh bonds sold for 100, bought at 20 cents on the dollar after bankruptcy have no returned more then the original 100.   Ie. there was nothing wrong with the debt, it was viable.   This mostly applies to the european side of the business apparently, that was dragged under.   Even the USA based bonds should return money in many cases apparently, it just might take ten or twenty years

Sub prime Im not sure what the deal is, did it really all goto zero.  Except I read about demo groups like the wallstreet protesters buying housing debt and then releasing the home owners from the debt, or distributing the assets to the community.  Obviously that is charity as the bond has returned zero in that case

[redwhitenblue]

People would probably not pour their money into BTC after a stock market crash.

They would likely put money into ultrasafe investments.

The price of BTC and stocks (very risky investments) are correlated at least in the short term, and in the absence of other BTC related news.

[Ron~Popeil]

At this stage I don't think they would trust bit coin yet. I prefer they stay out as I would rather have solid growth than panic buying followed by profit taking etc.

[boumalo]

I think people will put their fiat into bitcoins when the inflation will get huge even measured by the official numbers and when the financial system will vibrate

[kerafym]

I think people will put their fiat into bitcoins when the inflation will get huge even measured by the official numbers and when the financial system will vibrate

Real estate is a less risky way to hedge inflation.

[alani123]

One can profit from bitcoin trading. Many believe that bitcoin trading is the future of trading because of the big potential profit it has thanks to the big price shifts. This bares some certain risk as well though. But when it comes to storing value, I don't thik that bitcoin would be the most reasonable way to do it. Through the ages, gold was used as a store of value. It's been proven that it can be used as a store of value for milleniums. However, in today's world bitcoin has a bigger potential to be used as an actual currency.

So it really depends on someone's needs.

[nickenburg]

Always when the stockmarket crash, there is so much panic in the media.
I just hope they wont take bitcoin down with them when that happens.
I know stocks and bitcoin are not related at all, but it can certainly happen people just pulling all there investment money back, to there wallets just to be safe.
Another scenario will indeed be people putting money in bitcoins because the stockmarket will be a bad place to invest for a while.
We will have to see what happens if there will be another stockmarket crash.

[efreeti]

Always when the stockmarket crash, there is so much panic in the media.
I just hope they wont take bitcoin down with them when that happens.
I know stocks and bitcoin are not related at all, but it can certainly happen people just pulling all there investment money back, to there wallets just to be safe.
Another scenario will indeed be people putting money in bitcoins because the stockmarket will be a bad place to invest for a while.
We will have to see what happens if there will be another stockmarket crash.

Stock market crashes will affect bitcoin price negatively.

A shortage of liquidity will mean high interest rate. People who borrow to speculate on bitcoin need to sell at any price to pay back loan. A higher interest rate also means money is better park at high yield bond than using it to hold bitcoin.

[zimmah]

Eventually bitcoin may even cause a stock market crash

and after the fiat price has tanked a lot, smart bitcoin holders may re-invest in bitcoin-friendly and future-proof companies extremely cheap. Of course not their entire bitcoin stash, but a moderate amount of it.

[marcus_of_augustus]

I think people will put their fiat into bitcoins when the inflation will get huge even measured by the official numbers and when the financial system will vibrate

Real estate is a less risky way to hedge inflation.

You should tell that to all the MBS holders from the Aug 2007 credit market seizures ... they turned illiquid (i.e. worthless) overnight.

[BBmodBB]

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