Topic: Bitcoin as a secure investment amidst recession (Read 450 times)

In my view, other investment options besides Bitcoin as a safe investment in the midst of a recession are real estate as one of the best investment tools for the future because it can continue to grow in value even when the price drops. This is relevant to looking at housing needs where demand increases with the increasing population. According to me,

The thing we have to understand is that there is no definite investment in profit or safe, all types of investment are always in line with the risks we face, the higher the profit chance, the higher the chance of loss, bitcoin is a type of investment that is very risky because of price fluctuations that can sometimes be able to Reaching 10% or more a day, of course we must be prepared if bad things will happen.

I do not agree with it, because real estate is something that is tied to a situation there and too risky. Literally just one shooting in front of your house could make it devalue like insanely. I would prefer crypto, a basket of sorts where you have some great ones, and then just leave it be and you could make a huge profit from it.

Other methods like gold, stocks, fiat, real estate all of them feel like it’s not even remotely close to what it could give you when you compare it to crypto and that’s a big part of the problem. I am not saying that everyone should do it, if you do not want to, then it’s your own personal choice but I will definitely only invest into crypto.

I think there are two investments at the moment that the risk is not that high but the returns could be slightly higher in a matter of a few years. It is land and buildings that are ready to be used or rented out by others. I see that here in my country where land and buildings that have been finished always experience an increase in price and the risk is only borne when there are natural disasters such as floods and earthquakes which can indeed damage the land or buildings that are already standing. The rest doesn't exist.

That is right; any investment won't guarantee profit and loss, but atleast make sure to lessen the risk. Recession is the main topic, which is a decline in production of businesses and employment of workers. Therefore, if you are an employee, workforce would be highly affected to the extend that owners will be forced to lessen your days of duty which will also lessen the amount you are earning per month. Therefore, choosing to 'gamble' it in investment duch as Bitcoin would be too risky in the first place. Imagine putting your money into something shich is volatile hoping for profit. Once bearish markct continues, your hopes in that invested money will be burried deep along with Bitcoin's price.

Honestly, an asset that can fall up to 20% a day in nonrecession times as well doesn't qualify as a secure investment in at least my books. Even though in the longer term it has always gone bullish but I still feel that Bitcoin shouldn't be your number 1 priority in case of a recession scenario. Protection against inflation really becomes a myth when the asset itself falls by 10-15%. Think for yourself how does it make sense to invest in an asset that could fall by 10% in a day to get protection against Inflation which at max would be 15% a year. So I think go for some other safer asset during such times or better be liquid and take hit on inflation of 10% infact keep the money ready for the bitcoin to go at ultra-low at recession time so you could step in and invest at the best time.

Any asset will not guarantee no loss and that applies to all types of investments. When it comes to finances to prepare for a recession, it will require excellent financial management. We cannot predict how much we will need, because when a recession hits, the worst imaginable situation will probably be more than we can imagine. We are not in 2 options, but we are in a situation that must understand this wisely and must prepare for it as best we can. And one of the things to do when facing a recession is to set up an emergency fund.

If there's anything I've come to notice about Bitcoin it's that it defies effects of global economics. We saw what happened during the lockdown in 2019, how the world literarily crumbled but Bitcoin rose and gave hope to its fans. I had a similar discussion a few days ago with a Bitcoin wannabe and I told him it was better keeping his cash in Bitcoin than leaving it in fiat in expectation of recession. Fiat is stable compared to Bitcoin. A dollar will remain a dollar but a Bitcoin will continue to vary in value against dollar. Most times, the value is of spiral dimension. The way things are looking right now, one can project that a global recession is imminent in 2023. Ironically, 2023 is the year we expect Bitcoin to soar and then record another ATH in 2024.

I am an optimist about the future price of Bitcoin.  In my opinion, the price of the first cryptocurrency will not fall to $10,000 - $15,000. 

$17,000 - $20,000 is the low price of Bitcoin in this bear market cycle.  In the future, the price of Bitcoin will only grow.  I predict the price of the first cryptocurrency at $40,000 in January 2023. 

Bitcoin is a global human value.  It shouldn't be too cheap.

My golden rule for investing is to look for investment opportunities that have growth potential that I also happen to really believe in. For example, I’m a huge believer in Bitcoin and think the technology has huge potential.

If I truly believe in a technology, product or service, I don’t have to worry about short term swings. I like holding long and try to never sell for less than I paid for something.

If you have faith in growth potential, than eventually it will materialize or it won’t but I wouldn’t make that decision until I’ve given it a lot of time. I think BTC will hit 100k eventually but it may take time to get there.

Although bitcoin is just like other investments that has its own ups and downs that keep upsetting us, but definitely bitcoin has always an advantage not only as an investment but even as a decentralized currency. The reason why bitcoin investment is now starting to become a trend because of its bigger returns than fiat investments. Unfortunately, some refuse to accept it and instead throw some negative issues against bitcoin.

Yes. High volatility is in fact the asset of the traders. This is where they buy low and then sell when there is some small recovery in the price. This can only be risky for those who are less experienced so before they trade with real money, it's a must to practice first properly or they can just do investing for now since it's more of a passive and it's much easier to do.

Many people likes the idea behind bitcoin or its decentralization and they can trust it more than the banks and fiat so they can put their wealth on here. This is one of the reasons why the price of btc can grow higher later on. While the value of money will only go down.

That "it will increase in the price" idea is he same as what I talked about, the purchasing power. Right now, it could be lower in price today compared to last year, and lower in purchasing power as well but dollar valued up because of the interest rate, meaning dollar is not as devalued as last year, and todays 20k is not the same as last year’s 20k, it’s not the same as last year’s 68k neither though which means it dropped, but not as much as people claim it did.

That’s why it’s quite important to realize 1 bitcoin will always have a greater value in the long term, and that’s what people invest into, because they believe it will worth something more in the future.

The idea of having that notion of 1 btc = 1 btc is because about of its greater value in the future. The price may plummet at these days and we don't know how low it could go. Remember that this has been said in the past like when it's $3k or less.
And as that notion has been into fruition since 2020 up to last year and even up to this date. The value of it just keeps on going up if looking at its chart and comparing it to the past, what you're saying is all about the inflation and regardless of that, the value of bitcoin will keep ahead from it and will still be useful as ever.

I have not really understood how bitcoin is suppose to drop because of recession or that if bitcoin price decrease during recession then we attribute it to it. The price may drop or rise at that point but how can it be explained to be the reason? Bitcoin is a decentralized asset that has nothing to do with legislation or control by any certain group, so how will scarcity of commodities bring drop in price when there is expectation that people will want to save their money in bitcoin as a diversification means to get more value of what they have to save instead of keeping money in the bank.

Are you sure with what you are saying, I don't think buying bitcoin at any price is profitable? Those who bought bitcoins above $50k or even $30k are suffering heavy losses. While bitcoin is a highly profitable investment, if you don't buy it at the right time, it will also cost you a fortune.

Bitcoin is a highly profitable investment but not the safest. Compared to gold, the future of bitcoin is still uncertain, investing in bitcoin is still risky. That is why it is always advised not to invest it all in a volatile asset like bitcoin.


If we enter a recession then bitcoin will definitely fall more than the current price. But we know how to take advantage to buy the lowest price, the profit will be huge if holding bitcoin until the recession disappears.

Bitcoin has always been one of the most powerful investment tools for me. No matter what value you buy, you will always make a profit.
Today, in the crisis caused by inflation around the world, everyone wants to have the right position. Bitcoin will again be one of the safest investments. However, I predict that the value of bitcoin will fall a little more. Then you will make more profit if you buy bitcoin. with bitcoin purchased at a value of 13,000 dollars, you can make a profit of about 8 times.

I understand bitcoin is a good store of value compared to fiat ^{[because of its future potential],} but it's hard to say that its price will not be affected by a recession or global economic downturn. Inflation can actually affect bitcoin as currency too, I mean if today one car is equivalent to $20.8K ^{[1 bitcoin]} then maybe I should pay more bitcoin for the price of one car in the future if the bitcoin price drops to a lower price ^{[eg $17K].} But of course it's different if I don't use it as a currency, but only as a store of value for assets or long-term investments.

I don't know where the fault lies in my mindset about anti-inflation bitcoin if bitcoin is a currency, while its price fluctuates and can always go lower or even up. If in November 2021 1 bitcoin could buy 4 cars for $17.25K/car, then today 4 cars for the same price would have to be paid with 3.3 bitcoin ^{[$20,859/btc].}

People look at how any type of currency could make their life any better, that's the only thing that a currency is good for and nothing else. Doesn't matter if you get an extra 100 dollars or get 100 billion dollars, you do not think about the money itself, you think about what you can do with it. That is why 1 bitcoin is always 1 bitcoin is a distorted meaning of something very old "it's always capable of buying you something you want".

In this meaning, 1 bitcoin could be 20k today, and could be 20k 10 years later, but the 20k of 10 years later will not be able to buy you the same things, it will buy you something smaller, and 20k 10 years ago could have bought you a bad house, today maybe a bad new car. Hence, it's all about 1 bitcoin being always valuable to buy the same thing even after 10 years, that's the key, it will always go up and not be devalued, aside from crash years like now, it will always go up in the long run to give you a standard you will enjoy.

The local currencies are hit the most in terms of recession due to countries policies. The only countries that could actually survive a bit are those in which there local currencies are in dollars, euros or pounds. The other not to strong currencies are heavily hit in the international market once there countries encounters recession but with bitcoin one could still have its value even during or after recession


O yes bitcoin doesn't guarantees 100% but don't you read of countries investing in gold to help when there is devaluation in there local currencies, as gold also withstand or been able to keep up with it. Same thing with gold goes to bitcoin. In them you have a thing that does not devalue against other currencies and this could help save some funds during recession although its advisable not to put all investment in it due to bear market fear

I also think that compared to Bitcoin gold is still a safe choice in times of recession,
during a recession we need to be wise in making decisions and that's important,
what is clear is always consider whatever it is before investing

Don't pretend the recession is keeping you from thinking clearly. Be wise in dealing with assets with high volatility, even bitcoin does not 100% guarantee you from big losses. Invest in a sufficient portion if during a recession because you need more cash to keep buying goods at increasingly expensive prices. Unless you have a lot of baskets to pick from, even so a recession will only worsen the price of any asset. And before the bank freezes your account, it means preparing cash to survive in the middle of a recession.

While they're calling it a recession or sometimes, even milder, something that feels like a recession, I feel like it's actually significantly worse than that and is becoming an economic crisis that will likely surpass the effects of the previous one. Among particularly bad things is devaluation of not only smaller local currencies, but of the biggest ones as well. Some might strengthen a bit, but I wouldn't expect recovery of value of fiat currency. As for Bitcoin, I do expect it to fully recover eventually, so long-term holding of it might help after the recession. But during the recession, there's no guarantee Bitcoin won't devaluate even more than fiat currencies, so it's not a savior even though potentially it can be.

All assets go down in a recession, Bitcoin isn't going to be immune to the effects of a recession. The recovery of Bitcoin along with the global economy will be robust, so you shouldn't worry about your funds going up in flames, but in the event you need to liquidate your investment while the economy is still in recession, you're probably going lose money. It depends on how stable your country's currency is during recession, I suppose.


The purchasing power still varies, though. 1 unit currency will always equal 1 unit currency when talking about fiat too.

Yup, 1 bitcoin will always be equal to 1 bitcoin. That's the understanding that someone who invests on bitcoin. We know that the dollar value of it is the one big factors why people invests on it but if you want to get hold of your money, bitcoin is one of the best ways.
Looking at the potential and just be long term on it, that won't make you worry with the current situation and this is completely making us out from the financial system that's being made the banks and governments. Look at those banks in other countries, if their depositor wants to withdraw their money, they'll have their own rule apply on it and they'll make it hard for them. This has happened for some banks like in Lebanon and China AFAIK.

Inflation has not decreased yet, Fed rate hike is inevitable. Their goal is to be able to bring the interest rate to 4.6% by 2023 and now after 3 rate hikes, the interest rate is already at 3%, that means the Fed will have 2 more high interest rate hikes to achieve their target. If they still maintain the view of raising interest rates to control inflation, the world will definitely have a recession, things will get worse in 2023.

If there is a recession, bitcoin will certainly have a negative impact, but in the long run bitcoin is still better and safer than holding too much fiat during a recession.

Having the ease of mind that something you invested into will make you richer in the future no matter what happens in the middle is the luxury we have. Bitcoin is something that will go up faster than stocks, gold, whatever and that is the reason why we invest into it. I personally believe that as long as we invest into bitcoin, our future will be great and I am going to live a good life.

These days life is not great again, personal stuff not economic related but if I had more money then I would be able to fix all of it, and I trust that we are going to get rich enough to solve many of our life's problems via the money we make from bitcoin when the time comes.

the Federal Reserve continuing to raise interest rates, many countries will face problems due to their inability to control liquidity and the rapid flight of capital abroad.
If the Fed continues in the next meeting in the same way and the recession is confirmed, many countries will face bigger problems that may lead to political strikes, demonstrations or acts of violence and sabotage.
It is best for everyone that things settle down.

In terms of investment, it is very difficult to equate thoughts, because each person or investor has their own thoughts that cannot be contested by others. Because basically every decision is made by each of them, it is based on research and very careful consideration on every thing that might happen in investment.

For example, such as risk, because it clearly exists even though it can still be avoided by every investor and for the direction of investing in Bitcoin I think only people who have believed and also certain who dare to make steps and attitudes to investment.

Bitcoin's plunge during the economic crisis is undeniable, it is happening and will continue to happen if inflation continues to soar. But there is a difference between bitcoin and national currency, once the inflation is over, bitcoin will surely rise again and there will be strong rallies but for fiat, it is very difficult to revert to the pre-inflation value, most likely the value will stay the same as in inflation. That is why it is said that fiat loses value over time. All are affected by inflation but holding bitcoin is still more profitable in the long run.

Yes, Bitcoin is indeed a relatively secure investment amidst recession. Although its correlation with the traditional market has been rising, as a matter of fact, hitting all time highs against S&P500 and Nasdaq within the year, it is a tendency for a number of companies not only to be unprofitable during a recession but also to even file for bankruptcy. With Bitcoin, you are more or less guaranteed that everything is temporary and better days will resume. Admittedly, however, it seems gold is still more secure than Bitcoin in times of recession. 

This was discussed for years and when covid happened and a recession took place, we knew it wasn’t a safe haven.  It was originally created during the great financial crisis and people for years assumed it would be like Gold during a recession however it’s not the case.

It’s directly risk on and correlated with stocks pretty much like the nasdaq. Look at what happened today after Amazon earnings.
Amazon took a huge dive and so did Bitcoin. Pretty much at the exact same time.

Even if Bitcoin is too volatile, there’s still a high probability to make profit here than to hold your cash so the best option for now is to have some Bitcoin. Recession is inevitable, and the more you prepared for this the better. Bitcoin might not give any guarantee in the future but as long as you believe on a decentralized system, Bitcoin will prevail and hodlers will gain more later on. Be patience as we are going to deal with the recession, value your time to accumulate.

Don't expect for stability
Don't expect for being safe haven
Don't expect for it to be a savior in times of recession

The best thing to be done is to make yourself find out lots of ways for you to get another source of income.Its true that it would be better not to make your fiat savings do being stored on a bank but rather make out investment that could generate some income on which this could really able to patch up whenever we do face up some difficulties in living.

Considering how amazing bitcoin is and what can be done with it, I have to say it’s definitely something that I would advise fairly a lot. This doesn't mean that it’s going to be very tough, it just means that we are going to see the crashes and that’s going to upset us of course, who wouldn't be upset with the price crashes on their investments, but to know that it is going to be fine is our luxury.

I know that the price crashed, and it is a sad thing, I rather see it 100k today, but I have the big advantage to know that it’s going to be 100k eventually one way or another. That type of feeling is the reason why I suggest people to buy and hold bitcoin at all times.

For people in most developing countries bitcoin is a very secure source and a reliable investment in this recession season. This is because even if bitcoin drop in price, there is still hope that it would rise again. But when most currencies in developing nations lose value, they never grow to recover their loss. That is why Nigerians prefer to save thier funds in bitcoin than saving it in the naira. The Nigerian currency has lost almost 80% of it's value in few years and there are no speculations or predictions that it would become strong In the nearest future.

While bitcoin's design and implementation to counteract negative recession trends are of the highest quality excellence.

Bitcoin becoming an asset traded by hedge funds and deep pocket speculators appears to have resulted in it being traded in lockstep with stocks and DOW averages.

Hopefully BTC will decouple from speculation trends to revert to former trading patterns.

In the price of gold we may see the same hedge fund speculation which has caused bitcoin price trends to derail off track.

In designing future cryptocurrency amendments might be made for insulating assets from market speculation of the largest investment institutions. That could be a necessary element for maintaining stable market prices which are purely influenced by fundamental market trading mechanics.

Let's see how's Bitcoin performance when recession and high inflation rate increase happen, what I know is a macro economy factors will affect anything including Bitcoin price. It's not because Bitcoin isn't immune against recession and high inflation, but a bad macro economy will decrease people money and decrease their buy power. IMO next year will be a disaster and Bitcoin price will fall the lowest around $10-$15K.

Yes and no. It depends very much on people and their finances. Bitcoin is great if you afford to hold for many years.
This usually doesn't happen in recession times, since the recession can bring higher prices, loss of jobs, ... forcing people spend their savings (including the bitcoins).

So yes, Bitcoin is great for people wanting to have 100% control on their money, if they afford to HODL. But recession complicates the things "a little".

Recession is simply the reduction in economic activities either goods or services. It can hardly be eradicated totally by a country, but its severity can be minimized. Part of its major effect are unemployment and reduced income, with both leading to citizens of the affected country left in abject poverty.
Some governments have continuously been looking into ways or passing laws to help reduce the recession or even avert it. Some of these policies have either made help reduce it or most at times worsen the situation. Some of these counter measures are:
1. The government instructs the central banks to either print more money or reduces the interest rates just to allow its citizens spend lots on goods and services. This particular measures had backfired in such a way that the countries local currency loses value against foreign currencies since it is in excess circulation.
2. Some government results into either reducing the rates of tax or ridiculously increasing its own spending.

3. Some government sends out bailout money to help institutions from closing down due to its effects.

These policies can have effects on citizens that have there savings in local currencies due to its devaluation. Some local banks even go to the extent of charging depositors of there long time savings rather than paying them for there interest growth.

BITCOIN AS A SAFE LANDING AMIDST RECESSION

Bitcoin which has viewed to contribute positively to the economy of a nation ranging from creating opportunities for countries with low Banking services, to low cost of transactions within and outside the country of trader, its relatively high transparency during transactions, its ability not to devalue against any foreign currency. With some of these advantages, here are some reasons why bitcoin should be priorities amidst recession.
1. Its Diversification: Bitcoin does not have any difference of value when compared to foreign currencies like Euro, pounds and dollars. Its value is same all around the world. These could help the investors/traders not to lose their funds when their respective countries encounter recession and there government implements measures that devalue their local currencies

2. Resistance to Inflation: with the continuous printing of money by government which has lead to the devaluation of the fiat currencies, bitcoins total circulation is fixed at 21 million BTC. Inflation hardly affects money at a fixed supply its valuation only increases proportionally to rise in demand.

3. Bitcoin's Value: although there are altcoins like Ethereum, bitcoin is best suited to perform better in terms of recession due to it's less volatility, scarcity, safety. In comparison to stock its effectiveness booms and busts the economy due to technical advantages, ability to grow, financial discipline, great community or decentralization.

With recession lurking around some countries, bitcoin could be lifeboat for people looking for safe landing without it been influenced by government policies.
Although there is fluctuation in bitcoin's price, some as a result of government recent policies on its mining, Its value guarantees less risk for savings than any other coins or fiat currency.
1btc remains 1btc



References
wazrix
finextra