Bitcoin and cryptos used as stock market assets short term.

paxmao

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Quote from: Don Pedro Dinero on October 11, 2018, 03:42:34 AM

It’s happened again. The Dow Jones and the S&P 500 went down by more than 3% yesterday and today we get another big drop in the crypto market: bitcoin down 4%, the rest of top 10 coins at coinmarketcap going down by 10% on average.

Gold has gone up but just 0,25%. Where is the money going? The rest of the world stock markets are down as well. I take it people are foreseeing a crash in the market and prefer to sell investments and pile up cash, at least temporarily.

It is due to two main reasons:
a) The federal reserve has risen the interest rates.
b) The commercial wars are giving a pessimistic background to most US companies.

The money is going into bonds and US debt.

Don Pedro Dinero

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It’s happened again. The Dow Jones and the S&P 500 went down by more than 3% yesterday and today we get another big drop in the crypto market: bitcoin down 4%, the rest of top 10 coins at coinmarketcap going down by 10% on average.

Gold has gone up but just 0,25%. Where is the money going? The rest of the world stock markets are down as well. I take it people are foreseeing a crash in the market and prefer to sell investments and pile up cash, at least temporarily.

Athanasios Motok

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Quote from: Don Pedro Dinero on August 30, 2018, 02:32:55 PM

Most of us suppose that if there is another crisis like the 2008 one, which I think it is quite likely in the future, bitcoin will act as a wealth reserve and I also think this is quite likely, but that doesn’t seem to be happening short-term.

I fully agree that Cryptocurrency can be an alternative to big savings in the event of a crisis. Of course, all large investors trust the dollar. This is a reserve currency in the world, which has forced many states to work for it, but this does not mean that the dollar cannot collapse. The year 2008 showed how the dollar could collapse in America and in another country, and only through printing new dollars the situation was resolved.

As for the investment alternative, we could all see how in Venezuela the bitcoins began to be bought in large quantities.I even saw the schedule of popularity queries in this region, it is just crazy popular.

You are talking about gold or silver. Perhaps these assets will also become an alternative method of salvation, especially for people of age who have only believed this for many years ...

Jet Cash

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I think that the dollar is still seen as the ultimate safe haven asset. and the dollar has been strengthening recently. Gold. silver, stocks and cryptos are perceived as risky investments in manipulated markets. Unfortunately the dollar is not the safe haven that many people imagine, and current world affairs seem to indicate that it may be more of a risky investment than in past years. Gold has been a store of wealth for thousands of years, and this is unlikely to change, despite the extreme price manipulations. Bitcoin would appear to be the modern equivalent of gold, and will establish itself as such over the next few years in my opinion. Of course this presumes that it will be able to preserve its decentralisation. A few other crypros will establish themselves, and it will be interesting to see which ones manage to gain world acceptance.

Don Pedro Dinero

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Since the downfall in December-January, I have observed that what has happened today has happened a few times.

Now, there might be some times when this is just a coincidence but I already opened a post some time ago about the subject and I’ve seen this quite a few times afterwards.

Today’s loss on the stock market seems to be due to the emerging markets problems, like Argentina, and there might be another plausible reason for the crypto market but this has made me think that the crypto market is just used by people the same way they buy stocks or mutual funds but with the difference that the crypto market has more volatility. When they see macroeconomic trouble, they sell.

Most of us suppose that if there is another crisis like the 2008 one, which I think it is quite likely in the future, bitcoin will act as a wealth reserve and I also think this is quite likely, but that doesn’t seem to be happening short-term.

What are your thoughts on this?

Topic: Bitcoin and cryptos used as stock market assets short term. (Read 289 times)