Topic: Could Bitcoin potentially serve as a safe haven in the upcoming economic crisis (Read 574 times)

It will take a very long time before the dollar losses its position as the strongest currency around the world, and even if at some point happens it is likely it will still be accepted on many countries after such event as this has been the case for a long time, now about the topic at hand bitcoin can serve as a safe haven, however its lack of stability makes it very volatile to perform this function without any issues, as during a crisis what people are looking for the most is a strong currency, and if at the time the crisis happens bitcoin is experimenting a bear market then the protection it can offer will be very limited.

I do agree, as much as China or even Brics or Russia wanting to dislodge the dollar as the top of the world reserved, it's not going to happen very quickly. Every nation still uses it as their mode of exchange to their local fiat and as you have said it won't lost it value as it will remain the top currency to be accepted globally.


Yes, and with that, we are still going to see bitcoin exchanges to dollar as still the best exchange rate that we are going to see. That's why you can see in cmc that bitcoin is equate to USD because everyone understand it. And for us who doesn't use dollar, for sure we can have our USD=local fiat rate as well that we can easily memorized because it's been the norm.

Dollar doesn't seem to be giving up its place, even with all those attacks and trying of dedollarisation, it is still at the top and not losing its place as it seems, as long as more people accept dollar than any other currency, then we are not going to have any big changes.

You can have dollars and go to ANY nation in the world and live, aside from maybe like north Korea or something. This is why I think it is quite important to remember that bitcoin may not reach there not because bitcoin is bad or something but because dollar is the king when it comes to currencies. Obviously it is not going to be that easy and it shouldn't really change much on the long run and shouldn't really be a big deal when you think about it.

Given bitcoin's volatility, in the short term bitcoin is never a good choice to hedge against inflation. As evidenced, we can see how in the 2022 crisis, bitcoin is also affected by rising inflation and rising interest rates, those who buy bitcoin for short-term speculation will definitely suffer losses. But in the long run, we can see that bitcoin holders from 2014 and 2015 delivered huge returns that far exceeded the rate of inflation.

As I said, with its scarcity and price appreciation over time, bitcoin is actually a much better hedge against inflation than gold over the long term. 

If we want to avoid inflation in the future, bitcoin is the perfect choice we have. Gold is stable and only maintains value but cannot increase in value like bitcoin, it's really not comparable to bitcoin.

I don't know which countries started to abandon the dollar. Maybe some Asian or African countries. But the rest of the world still uses the dollar to trade any goods. Especially now there are a lot of stablecoins, which are also used by many people in different countries. I don't think bitcoin can become a reserve currency, because it is not very convenient. Most likely bitcoin can become something like gold.

Well if you are actually following up the trend then you will notice that the dollar has already been having issues seriously and many countries are starting to replace the dollar as it's major currency for trade and so many stuff and as for the case of bitcoin I guess only time will tell as am very sure that bitcoin one day will eventually become the world reserve currency although we all know it's gonna a life time for that to happen but we just can't stop waiting it happens quick

Print and keep on printing, of course, this will be the reason why inflation always occurs.
The government is also using fiat money too much and government spending is out of control.

When too much money is circulating in the system, it will certainly have an impact on the increasing demand for goods and services which will ultimately increase price increases and inflation occurs.
There must be a serious policy to avoid hyperinflation like Zimbabwe.

Bitcoin may be a good way out, but it should be noted that the risk of high volatility in Bitcoin will remain, fast price movements will be a high enough risk for early users.
Said to be a good hedge, at this time bitcoin is certainly still not among the best, There is still Gold which is a hedge for many people.

But Bitcoin has a limited and decentralized supply, so the supply in circulation will remain or decrease and is not regulated by any government.
Before considering Bitcoin as an inflation hedge, it's a good idea to do thorough research, understand the characteristics of the crypto market, and carefully consider your risk tolerance and investment objectives.

Of course, it may happen that bitcoin will become the world currency. But so far, the dollar has taken this place and it will probably continue to do so in the near future. If the crisis hits the dollar, some other country will want to replace the dollar. For example, China, which is not in crisis now and has great potential. Governments don't allow things into the economy that they can't control. Bitcoin is such a thing.

We are in an economic crisis and are slowly coming out of it. But inflation and crisis are part of the economy and it will come back in the future, everything is cyclical and this is not the first time the world has had a crisis, inflation. Therefore, it is necessary and not wrong for us to prepare well for the future.
In the short term, I would be skeptical of bitcoin but in the long term, bitcoin is actually a better hedge against inflation than gold.

A multipolar world is a certainty in the future, but that does not mean inflation and crises will disappear. As long as the government still uses fiat money and money printing is not strictly controlled, inflation will repeat in the future even if we have BRICS.

Barring everything that had happen to us in the past, like the pandemic and the war in the Europe, it's better to think that we might be in the economic crisis already.


Actually we did experience, after the pandemic, perhaps last year, we have seen some countries really going into the brink of meltdown. We have heard BRICS for so many years though, and that they should be the next big think around the world. But so far, it has not proven anything. China though is really coming up to challenge the US and with that we should be ready and at least hedge some of our wealth into bitcoin by now.

I have convinced myself that bitcoin is the best investment asset or store of value compared to gold currently and in the long term. Bitcoin is performing well for an asset - I don't doubt it because bitcoin is being supported by the community as adoption increases. I don't know how skeptical you are about bitcoin's long-term potential - but try not to ignore the opportunity even if you can only afford to invest 10% of your overall budget in it.

If you have doubts about Bitcoin - then it's a good idea to diversify. This means that you can buy bitcoins for a certain budget amount and you can also have gold as another asset. Both of these investment assets are profitable - but you still have to consider the risks.

I think trade will be done in BTC if other alternatives prove unable and extremes like national currency does fail then its already proven BTC is of use to the common people.   To be a safe haven is more then just transacting, that suggests stability beyond other things like just buying food that keeps or anything that is more stable then the failed currency.   I think most will not look at BTC as a safe haven but for speculation and various uses mostly digital, long term I think thats the market BTC is best suited to.

I do think that is the main reason why we are using it anyways. I mean why would we want to hold bitcoin? Is it because it looks cooler? Of course not, I buy bitcoin because it is an asset that will go up and be more valuable than other assets while fiat is dropping. Some people use stocks, some people use gold and silver, some people use real estate, but many people who realize that holding fiat is a bad move, will end up doing something.

I think it doesn't make sense to cause this much trouble personally, it should be important for you to realize that it is not going to end up with a result that you may want if you keep holding bitcoin. This is why it is much better if you just get bitcoin and hold that instead of fiat.

I don't know why you are so sure there is an incoming economic crisis. What are the signs you are seeing that made you so sure?

Anyways, if there will be such economic crisis, I don't think it will be like the 2008 economic meltdown given that we are at the verge of seeing two powerful global financial system... being the status quo and the BRICS nation. If the later succeed in establishing the kind of economic cooperation they set out to achieve, it could result in a situation that a crisis in the US controlled economy might lead to an economic prosperity of the BRICS nation and vice versa. This is what I envisage in a bipolar world that is upon us already.

Not all places or countries around the globe would really be suffering such economic crisis on which there might be places which do suffer but it wont really be that 100%. Economic crashes? Its never been new and as an individual then it would really be just that wise if you had already made out yourself that prepared for whatever things that would really be happening. Bitcoin could neither be or not as your safe haven but considering that we do speak about risks then there's no exemption and its true that there's no such thing about assurance on this world on which it would really be that still have the possibilities whether it would be still existing in future
years to come or not. Speaking about saving up your @ss in terms of problems then it would really be still that depending on how much you had invested of course and not really expecting something in return if you are
really just throwing up some few bucks on your Bitcoin holding or stash. This is why its better to be realistic if you do think up this way. Yes, it does have the potential that it might last long but doesnt mean that getting
rich with small amount of investment would really be happening into. Always put up into your mind that financial stability and sustainability would really be that not something an easy state for someone to reach or
acquired. It would really be taking lots of works and considerations too.

The volatile nature of bitcoin makes it an hedge to inflation,compare to gold or land. Land and gold doesn't have the potential that bitcoin has and can't be used as an hedge to inflation. I will say Land has been there for a long time but presently most investors are using bitcoin as a store of value because they have seen it is the best hedge to inflation.

However,the profit that bitcoin will yield in 8yrs will be higher than gold of the same amount is used to invest for the same given period of time. Demand and supply is what controls bitcoin price and as time goes on as the adoption increases,so also will the price increases,and because it is limited in supply,the price of bitcoin will keep on increasing. Abear market will come and go and your bitcoin wouldn't depreciate in quantity,it remains the same. Don't use only one side to judge Bitcoin and this is why a long term investment is the best because I know that if you plan to invest on land and gold,you wouldn't sell after two years because it will be useless to make profit from it.

It is true that many people think much about bitcoin and the way they present bitcoin will make you think that bitcoin has been right from the beginning of the world and it will be till the end of the world. Nothing lasts  forever including bitcoin, but there are things that have been proven to have stayed for very long and will continue to be in the economy for very long such as the gold that you mentioned.

The topic creator talked about the upcoming economic crisis and I wanted to read where he got the information from because the economic crisis that is hitting the world especially developing countries is worse and if there is more to come, that should be hell.

Prone to crashes doesn't mean it's bad to own because Bitcoin doesn't crash forever, especially as you yourself know that Bitcoin is becoming increasingly popular with the concept of decentralization so that it is liked by many people. And this also makes Bitcoin have the potential to become the best asset in the crypto space which is very suitable as a long-term investment for everyone, although other assets such as gold and land are also not bad to own.

But you also have to understand that Land and Gold are very different assets to Bitcoin so you have to put them in a different place because they are not worthy of being compared or compared in any sector. What I see is that gold is only suitable for storing asset value in the long term because its increase tends to take a long time, while land will only increase if it is located in an area or place that is most liked by everyone. This means that not all land is the same price and expensive, because land that is difficult to reach by residents or the community at large will also be difficult to be expensive.

You had me with the first line but I don’t think gold will be a very effective hedge in a major market collapse either. The good news is that I don’t think a major crash is in the cards because banks have inflation keeping their assets afloat at the moment and that may last long enough to kick the can down the road on this whole economic crash thing.

It makes sense to use it that way because you are going to end up with a result that will profit you and a lot of people are lacking that. I believe that it will be important as we go ahead because it will definitely make a lot more people realize that fiat is not a safe place and bitcoin is a safe haven for them to keep their value.

I know that because it has crashes time to time like these ones, people are worried about it and I can understand the situation without a doubt. But that doesn't mean that we are going to end up with a bad result, the end result will be good without a doubt. That's why it's quite important to make sure that it goes as well as hoped for and could be profited with it without a doubt.