Can Bitcoin be a good investment over stocks in a recession period ? - page 2.

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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, both stocks and bitcoin can be affected especially bitcoin with its volatility.

Usually if stocks is crashing, there is something going on either politically or economically speaking. Most investors might seek a safe haven in the form of bitcoin so I think bitcoin is a better asset to hold compared to stocks. It is also much easier to buy or sell if need be as you are the one holding it yourself unlike stocks with a broker.

johnsaributua

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Recession in my opinion is global in an area, and if someone has enough money and wants to make a profit from an investment, it is normal as long as they still hold money. because if it is held all and used for consumption for a long time, of course there is no return and it is not felt. Investment is a solution if oneself cannot resist the temptation in conditions that are secondary needs, but if the condition is money for daily expenses it is better to use it as wisely as possible, the nature of a good investment is money that is not touched daily because investment is not every day in bullish / profit rallies in any sector. I agree that bitcoin is the best crypto in history and I chose it because of the convenience I get including storing and using it anytime without interference from others. The history of the arrival of bitcoin even I think when the economy of some regions / countries is not okay, bitcoin is a complement in the world of investment in the digitalisation era, a good pioneer.

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For me, I’d say that rather than choosing just one, you can diversify your funds into both of them because they both have their strengths. They have pros and cons. Bitcoin has a fixed total supply but it quite volatile. Stocks can give you consistent dividend payouts but dividend cuts can happen. There’s so many things to compare and like I said, they are both unique so spread your assets. What could go wrong if you’re on the fence?

Quote from: _act_ on June 22, 2024, 05:13:31 AM

I like bitcoin because you can hold it and have complete control over your coins, unlike stocks that you do not have complete control over.

Stocks are many. There are some that are very volatile like gambling just like altcoins are very volatile. Bitcoin is less volatile. So if you want to compare both, you can mention the stock that you want to compare bitcoin with. But as for me in general, I will prefer bitcoin.

Is it?

Maus0728

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Recession is a decline in economic activity right? And I don't think that bitcoin price is going to ever be dependent on that kind of situation so I'd say that yes, it's possible that bitcoin can be a good hedge against times of recession but it's still dependent on what price bitcoin is right when the recession is happening, if it's in a situation where the price is so high that a price correction is imminent, it's probably not a good idea to put in a lot of your money in it lest you want to experience panic mode when the correction happens and you see your bitcoin value starts to plummet but otherwise, you're probably going to be really fine with using bitcoin as a hedge but you still need to be careful about things because you're never going to know what will happen next so invest with caution when the times where money is tight and you need to budget everything.

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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 on how bad the recession is. If it's so hard that the majority is forced to liquidate assets to get along everyday, then Bitcoin is no different and a lot of people would have to decide to sell it. That's a double-edged sword and hard to tell where flipping points might be, but as I said, if the world's economy is under severe pressure, people are losing jobs, are not able to pay their debt for their houses, how would Bitcoin be a solution for those people? It would rather be the rich who'd benefit then.

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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 ?

Bitcoin has a higher recovering speed than stock, Stock, and Bitcoin can fall during a recession but when that recession is over, Bitcoin will be the quickest to recover its lost value and might get to a new ATH while the stock is still struggling. Bitcoin is a good investment over stock in all market conditions. Bitcoin has a fixed supply and has a different market audience that believe in Bitcoin and sees every decrease as a blessing in disguise. Bitcoin isn't controlled like how the stock market is being controlled with the help from the media. The stories they want you to hear is what they push out and this causes market movement to go in accordance with what the media are projecting.

The performance of a stock can be affected by what happens after the recession because of the sector that the company is a part of, goes out of business (get overthrown by a new developing sector that looks more appealing to investors), making them to focus more attention on the new section and making yours (where you invested) to be dormant. Investing in stocks during recession isn't a good moves because the market can lose value while you're already invested but investing in Bitcoin at anytime is always the right more.

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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 will just say you created this just for the sake of argument because bitcoin and stock investment are two different things, even though both have investment at the end. I know you will be confused because you view them as investments, but if you take your time and go deep into stock investment, you will find out that this deals with different challenges like expenditure, partnership, consumers, earnings, and most especially the interest rate. All these are factors that can affect this stock investment, and they contribute a lot to this investment because the stock price might increase the low demand for the stock on the market, which will decrease its income.

Let's talk about bitcoin. Although many know that bitcoin is a decentralised crypto currency that deals with demand and supply, while many believe that it is a saviour in times of inflation, which some view as achieving, bitcoin is like everything in this life.

So with this, let me ask you if bitcoin and stock investments are the same? If no, then why create the question?

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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 believe it depends on how much a person understands each market. Traditional markets such as stocks or forex are different than the cryptocurrency market, so a person leaving a traditional market and entering the cryptocurrency market might have difficulties.

One might think that all financial markets might work on the same strategy, etc., but that isn't right. If you are moving from one market to another, you will have to start from scratch knowledge-wise, which means that you will need to understand the market first, then understand the essential practices, and then create your trading strategy that would work according to your capital and investment method.

So, even if it could be a good investment, it won't be easy for everyone to do that.

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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 ?

Recession doesn't mean an economy may suffer inflation, I don't understand why you think investment in Bitcoin during that time will be okay over the stock as during that time, job opportunities and low demand in goods and services are what suffered the most in this period, so what are you really saying. Just know that either in good economy condition or bad economy condition, you can invest in Bitcoin anytime without stress and if the market is good, you will make a return on your investment.

You should know that Bitcoin doesn't really care about the intrusive situations of the economy, only traders speculate about what happened to economy with Bitcoin on the micro level but when you look at the bigger level, Bitcoin runs in bull and bear market. If you buy Bitcoin in the bear market, there is no guarantee but you will make something in bull market, even though it's going to be 100% of what you bought your Bitcoin, bull run must give something back.

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Quote from: _act_ on June 22, 2024, 05:13:31 AM

I like bitcoin because you can hold it and have complete control over your coins, unlike stocks that you do not have complete control over.

Stocks are many. There are some that are very volatile like gambling just like altcoins are very volatile. Bitcoin is less volatile. So if you want to compare both, you can mention the stock that you want to compare bitcoin with. But as for me in general, I will prefer bitcoin.

That is because BTC is decentralized and I think that is possible because of the technology that it is using which is called as the Blockchain. Stocks on the other hand were centralized and that is the reason on why you can't have a full control over them. You think stocks are many but what about the cryptos?

I think they are much more than them because it is only easy to create a crypto. I think stocks are still less volatile than cryptos but yeah, that any investment is still a gamble. I have zero knowledge about stocks, so like you, I will also go with BTC because I know that this is the best crypto. By best, it is not only doing well as an asset but also as a currency.

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I have bad experience with my local stock investment how easily manage by the developer with the price decreasing drastically, learned how bad viewed of stack not interested yet for investing my money with stock and more interested for investing in bitcoin because price increasing or decreasing not depend on the whales or some community.
Stock get difficulty for raising up such as bitcoin or cryptocurrency investment how easily raise up without waiting longer time, but many people against for investing in bitcoin and recommended stock as the best place for investment because has underlying when investing in stock we can see their project.

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Quote from: TheUltraElite on June 22, 2024, 05:18:46 AM

I still dont get why people think stocks is like gambling while bitcoin is not. Both are equally volatile and have their own set of risks with overlap. Does not make either of them good or bad, they have their own unique profile.

I believe Bitcoin is way more volatile than stocks. The only reason many believe that Bitcoin is good for investment in a recession period is because they believe it is a hedge against inflation other than that I can't hear any more reason why Bitcoin is good to invest in during those times. Aside from that during a recession most stocks fall and Bitcoin does not follow suit with traditional stocks so, it can be said that the price of Bitcoin is independent which may increase in value while the stock value collapse. Although this has not been proven yet many believe in this case due to how the Bitcoin market behaves.

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Although it is hard to say but I doubt it.

The thing about recession is that unlike inflation (that would shoot bitcoin price up) it forces people to liquidate their assets and they always start from the riskiest assets which bitcoin can be called that. So the sell pressure caused by the recession like this could lead to drops and even crashes depending on the severity of the recession and the panic sell!

In fact I've been saying that the only reason why we haven't seen a bull run that looks like previous bull runs in the past 2 years is the ongoing and worsening recession in most of the world.

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Bitcoin still the best investment for me and that works perfectly so far. I don't invest in stocks in a recession period because Bitcoin is enough for me besides of gold. I don't understand much about stocks and Bitcoin is more easier for me to understand and I don't have to know for very very details about Bitcoin.

People just needs to learn about how to keeps Bitcoin with right so they will not feels worry with the scammers. But people must understand that Bitcoin is not a rich-quick scheme that will gives them a big profit in a short time. They must wait for some term, usually four years to see the price increases.

But if you still wants to use stock instead Bitcoin, that will be no problem because we have our own choice. We choose Bitcoin because we already see how Bitcoin perform so far. Bitcoin is not disappointed us and even gives us a big profit if we can holds it for some time.

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Check this graph.

Actually both of Bitcoin and S&P 500 have some correlation, when BTC dump, stock dump too. When BTC pump, stock pump too. It just Bitcoin has higher volatility than stock, so don't sell it whenever you're not need in hurry.

I think Bitcoin isn't yet a safe thing to hold during crisis because during Covid pandemic, Bitcoin price once dump to $3K~ at that 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 ?

Where you will be comfortable doing that is what you do, because we also have different strategies when it comes to investments here in the crypto space, or bitcoin. It is also difficult for us to rely on the answers of others to the question that we are looking for an answer to.

It's even better because we ourselves do the actual research on such things. Now, if you really want to secure a profit, just hold bitcoin in the long term, and you will definitely get a profit this bull run, as long as you wait.

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Quote from: Wapfika on June 22, 2024, 09:01:36 AM

Bitcoin is proven resilient in times of global economic crisis and inflation while stock market plummets since companies is the number one affected for recession period. Bitcoin is independent assets that doesn’t rely on the global economy/fiat.

Well, that's in theory and it happened more in the beginning. Nowadays it is more and more related to the financial markets and its behavior is directly related to the liquidity in the market.

Quote from: Wapfika on June 22, 2024, 09:01:36 AM

Also based on the Bitcoin price history. Bitcoin price is only moving upwards every cycle despite there’s a correction occur. So this kind of assets is the best asset to invest in dire situation since you have an assurance that it will come back again no matter how hard down due to the recession.

This also happens with shares. Look at what happened in 2020, as discussed above. Both Bitcoin and stocks fell, only to end up recovering and surpassing highs in a short time. The difference is that Bitcoin is more volatile. It falls harder but recovers faster and rises higher.

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Not all stocks are the same though. Some stocks go down during a recession but not all. Defensive stocks are usually the stars of a recession period. It is because people will always have to use toothpaste, toilet paper, medicine etc… It is hard to beat these stocks during a recession.

Btc on the other hand usually acts like a leveraged nasdaq index fund and the Nasdaq stocks are mostly tech stocks. Tech stocks don’t do well in a recession so I think Bitcoin won’t be an exception.

In a recession I would go with the defensive stocks. P&G, Walmart, BAT, CVS, Costco, MCD, PEP are very popular and rock solid choices.

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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 ?

Bitcoin is proven resilient in times of global economic crisis and inflation while stock market plummets since companies is the number one affected for recession period. Bitcoin is independent assets that doesn’t rely on the global economy/fiat.

Also based on the Bitcoin price history. Bitcoin price is only moving upwards every cycle despite there’s a correction occur. So this kind of assets is the best asset to invest in dire situation since you have an assurance that it will come back again no matter how hard down due to the recession.

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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'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.

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