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

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Quote from: krishnaverma on June 22, 2024, 04:23:52 AM

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.

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Quote from: krishnaverma on June 22, 2024, 04:23:52 AM

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

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Quote from: TheUltraElite on August 07, 2024, 09:33:06 AM

Quote from: serjent05 on June 22, 2024, 12:50:31 PM

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.

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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.

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Quote from: krishnaverma on June 25, 2024, 05:28:19 AM

Quote from: kryptqnick on June 23, 2024, 02:02:58 PM

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.

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Quote from: krishnaverma on June 22, 2024, 04:23:52 AM

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.

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Quote from: krishnaverma on June 22, 2024, 04:23:52 AM

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.

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Quote from: serjent05 on June 22, 2024, 12:50:31 PM

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.

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Quote from: krishnaverma on June 25, 2024, 05:28:19 AM

Quote from: kryptqnick on June 23, 2024, 02:02:58 PM

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.

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Quote from: Alpha Marine on June 25, 2024, 02:10:57 AM

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.

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Quote from: kryptqnick on June 23, 2024, 02:02:58 PM

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.

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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.

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Quote from: krishnaverma on June 22, 2024, 04:23:52 AM

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

It depends of how long do you plan to HODL the Bitcoins.
If a recession starts and the cryptocurrency prices drop, will you panic sell or will you HODL? If you panic sell, then no, Bitcoin isn't a good investment for you. If you HODL, the markets will recover and Bitcoin will start another bull run, so your investment will pay off.
I don't know why do you have to compare Bitcoin to stocks in general. Some stocks are way better than others. NVIDIA stocks are great, as long as the demand for NVIDIA micro-chips is growing. Tesla stocks were overpriced and they will most likely keep dropping in value.

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Bitcoin is a good asset to invest in during a high recession. This is because when there is a recession it hardly affects the price of Bitcoin just the way other assets affect Bitcoin but if it is in the stock market, the commodities, service,s or goods can be affected by a recession and it might affect it negatively or positively. Most times it is affected negatively. So far a period of recession i would prefer to invest in Bitcoin rather than investing in the stock exchange. Bitcoin can store value in this period better than stock.

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Quote from: passwordnow on June 22, 2024, 08:54:23 AM

Quote from: krishnaverma on June 22, 2024, 04:23:52 AM

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

I've been buying Bitcoin and not into stocks despite that many of my friends have been encouraging me to buy those. I've chosen to buy Bitcoin instead of it and that's why this is what I have and don't have stocks at all. But I don't know during the recession period. We're all believing that this is the hedge against inflation and it's been made during the 2008 crisis.

It's able to survive during the pandemic and Ukraine-Russian war. So what's more to ask about it? Maybe the worst hasn't come yet but I believe that even on the toughest period of time that the entire world is going to go through with such recession, Bitcoin will survive no matter what happens. It's designed to survive it although it's been made as a peer to peer cryptocurrency but then its attributes have changed and became one of the best assets on this century.

Stocks are good investments as it creates dividend income and higher returns, but I believe bitcoin is highly more profitable and secured than stocks. And just like you’ve said, bitcoin has already survived the most worst world scenarios way back, so I think there’s no more reason to doubt the high potentials of bitcoin.

However, if you can invest both stocks and bitcoin during a recession, I think the more sustainable the profits will be. Stocks offer higher liquidity, but we all know bitcoin is more capable than that as long as we never stops taking advantage with bitcoin especially if there are huge opportunities in the market.

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Quote from: krishnaverma on June 22, 2024, 04:23:52 AM

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

I think because bitcoin is not fiat, it has volatility and fluctuating waves means it can appreciate in value than initial value because recession has a huge negative impact on fiat as the economy becomes dull with low demand nor supply which also depreciate the value of fiat. So having btc may be a hedge on fiat. In the case correction of bitcoin price, then the value also increases and during bull, it can rise astronomically causing the hodler to have more value in exchange for fiat.

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Yes if it is with recession period however, I doubt it won't be affected as well. People won't instantly shift to blockchain industry just because there is a decrease with consumer demand; it doesn't work that way. First of all, ceyptocurrencies are not yet widely accepted as ideal. If there won't be a demand on its usage then there will still be no positive and significant. Even turn deposits on banks would generate less income in such period and it might as well be reflected to this industry. However, everything will only be determined once this thing already happens. We can only assume at this point based on previous stock market events we saw from our past.

Quote from: kryptqnick on June 23, 2024, 02:02:58 PM

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.

It is not directly related but may still be affected. In recession, would people still have the financial freedom to invest given that an economic problem is happening? I doubt they would. Daily necessities would be prioritized, most likely.

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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.

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I will choose Bitcoin over stock. you know why? It's quite easy for someone to know or have in mind that within a space of time, if they invest in bitcoin during the bear market, they can stand a chance to be at profits during the bull market. For stock, it's hard for someone they know the right time to invest or know when they will succeed in their stock investment

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Quote from: krishnaverma on June 22, 2024, 04:23:52 AM

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

First, I would say that it depends on the kind of asset that an individual is more familiar with and understands the mechanism so well. Don't invest because someone is investing there or someone has convinced you to invest like he or she is doing. Investments should be made based on different factors, such as the knowledge you have about that asset, the profit it can generate over a short or long period of time, the volatility level of the asset, and also the ability and quickness of the asset to surge in price after a market fall due to economic crises or whatever that can cause the price of the asset to fall.

Let me go back to your question: during the recession period, what happens? I believe we all know. If the financial market plunges and affects stocks, I also believe it will definitely have an effect on the price of Bitcoin. During this period, if the price of both assets (Bitcoin and stock) plunges, which do you think can have a quick recovery, and which of them do you also think will have more resistance to market crashes? From my observation, I feel Bitcoin will have a quicker price recovery than stock, so I would rather invest in Bitcoin.

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