Topic: Could Bitcoin potentially serve as a safe haven in the upcoming economic crisis - page 2. (Read 574 times)
August 21, 2023, 10:16:03 AM
There is no safe place when a crisis occurs, many people think too much about Bitcoin, what we must understand is the concept of decentralization such as bitcoin of course also prone to drop when inflation occurs, it is better to save large amounts of assets in trusted commodities such as gold, Land and so on, and making cryptocurrencies is an alternative investment so that it does not make us panic when a bear market occurs.
August 21, 2023, 07:51:25 AM
there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
I'm going to try to say yes, bitcoin is going to be an asset with potential as a safe haven of value against an economic crisis.Bitcoin comes by providing transactions without a trusted third party and the presence of bitcoin responds to the global recession in 2008[1].
The history of bitcoin with the global economic crisis that has occurred has made many experts who have conducted studies conclude that bitcoin is the best hedge.
As the best store of value, bitcoin's value in the long term will not decrease and great returns will be earned by those who choose the long term.
Don't look at the current price drop from 29k to 25k, but look at the price statistics from when it was first introduced to now and in the following days.
August 21, 2023, 07:00:44 AM
Hello everyone,
there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
what do you think ?
there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
what do you think ?
it could say that bitcoin is being used as a safe haven by many people nowadays, I even made bitcoin as my safe haven several times when the issue of inflation occurred in my country, especially since the benchmark for the value of all world currencies is USD, so the USD / BTC pair is very good to be used as a benchmark for safe haven (often professional traders and investors take advantage of the moment of inflation to take profits in the market).
the scenario that occurs is usually when inflation occurs in your country, the exchange rate of your country's currency against the USD will decrease so that to buy bitcoins you have to use more money (a moment when many people are selling bitcoins) but when the value of your country's currency strengthens against USD then you only need to spend a little money to buy bitcoin (a moment when many buy bitcoin)
August 21, 2023, 04:29:56 AM
Hello everyone,
there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
what do you think?
In my country, our economy has been in recession for over two years now and there has been a high rate of inflation increasing rising cost of basic livelihood items and low wages and poor governmental policy from the central bank that has resulted in a weak currency value, so in this kind of situation I think we are no longer waiting for in pending economic crisis since we over here have already been on recession for long now. there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
what do you think?
But talking on the role of Bitcoin in this kind of situation, it point to the primary fact that Bitcoin is a saviour in economic crisis so at that, knowing how to properly DCA makes you outstanding in using the Bitcoin economic cutting-edge formula.
August 21, 2023, 04:08:11 AM
If I look at history, there is no investment instrument that maintains value at the beginning of the crisis. Bitcoin is also on this list, and there is no guarantee that the recovery history until it gets a new ATH will be repeated.
Ideally, you can think of any safe haven if the crisis has been going on for some time and you've convinced yourself that your survival will be fine for a potential longer crisis.
Ideally, you can think of any safe haven if the crisis has been going on for some time and you've convinced yourself that your survival will be fine for a potential longer crisis.
As a Bitcoin HODLer, what would you advice your fellow HODLers should be holding during times of crisis? Cash/Fiat? That's probably a practical move, but that won't be a "safe haven" in my opinion, that would be a hedge to limit the drawdown from HODLing Bitcoin, the actual safe haven. Because,
I said at the beginning of the crisis, not during the crisis. What I'm really worried about is that people are converting their wealth too soon into bitcoins which they consider "saev heaven", while the crisis is still just hearsay. It was suicide based on the history that I explained earlier.
On the other hand, I'm not saying bitcoin isn't a viable investment during a crisis, precisely it is a good opportunity to double wealth. The question is, could the average person think of increasing wealth under such circumstances?
OK, I believe that we're talking about different categories of crises. You're talking about the usual Boom/Bust Cycles that happen every time an economy is "over-heating" caused by too much money in circulation. What I'm talking about is a kind of financial crisis like what happened in Weimar, Germany, or to those countries that are currently suffering from hyperinflation. It's always better to be prepared and HODL some Bitcoin as a fall back than having none.
August 19, 2023, 09:43:30 AM
Zoom out past the period of economic crises? No ser. You zoom out to see the REAL trajectory.
Yeah yeah!
You need to zoom in on the growth of 1000x from a few pennies to 10$ to ignore the fall from 60k to 25k!
Same as in another thread, show me the safe heaven part:
Bitcoin exploded in periods of really cheap money with interest under 1% and with inflation under 2%, for the first time in its history when it was faced with expensive money and high inflation is the moment it broke one of the rules of never going below the previous ATH and more importantly, it stopped acting independently. Bonds went up, the stock market went in red Bitcoin went in red too. But let's zoom out for others too:
Hmmm **** was 2$ in 2013 is now 200! If zooming out is the way to analyze things then *** shares are a hedge against inflation!
August 19, 2023, 09:40:30 AM
If I look at history, there is no investment instrument that maintains value at the beginning of the crisis. Bitcoin is also on this list, and there is no guarantee that the recovery history until it gets a new ATH will be repeated.
Ideally, you can think of any safe haven if the crisis has been going on for some time and you've convinced yourself that your survival will be fine for a potential longer crisis.
Ideally, you can think of any safe haven if the crisis has been going on for some time and you've convinced yourself that your survival will be fine for a potential longer crisis.
As a Bitcoin HODLer, what would you advice your fellow HODLers should be holding during times of crisis? Cash/Fiat? That's probably a practical move, but that won't be a "safe haven" in my opinion, that would be a hedge to limit the drawdown from HODLing Bitcoin, the actual safe haven. Because,
On the other hand, I'm not saying bitcoin isn't a viable investment during a crisis, precisely it is a good opportunity to double wealth. The question is, could the average person think of increasing wealth under such circumstances?
August 19, 2023, 03:35:10 AM
If I look at history, there is no investment instrument that maintains value at the beginning of the crisis. Bitcoin is also on this list, and there is no guarantee that the recovery history until it gets a new ATH will be repeated.
Ideally, you can think of any safe haven if the crisis has been going on for some time and you've convinced yourself that your survival will be fine for a potential longer crisis.
Ideally, you can think of any safe haven if the crisis has been going on for some time and you've convinced yourself that your survival will be fine for a potential longer crisis.
As a Bitcoin HODLer, what would you advice your fellow HODLers should be holding during times of crisis? Cash/Fiat? That's probably a practical move, but that won't be a "safe haven" in my opinion, that would be a hedge to limit the drawdown from HODLing Bitcoin, the actual safe haven. Because,
August 18, 2023, 02:53:32 AM
If I look at history, there is no investment instrument that maintains value at the beginning of the crisis. Bitcoin is also on this list, and there is no guarantee that the recovery history until it gets a new ATH will be repeated.
Ideally, you can think of any safe haven if the crisis has been going on for some time and you've convinced yourself that your survival will be fine for a potential longer crisis.
Ideally, you can think of any safe haven if the crisis has been going on for some time and you've convinced yourself that your survival will be fine for a potential longer crisis.
In order for an investment instrument to be described as a safe haven, it must be unrelated or negatively related to other investment instruments in times of crisis or recession. Gold is an example. Its volatility is not high and it is a safe investment tool that has always been adopted by people but it is disadvantageous in terms of storage conditions and so on. Bitcoin volatility rate is at the top compared to all other investment instruments. The nature of the cryptocurrency market demands it.
Bitcoin's volatility does not prevent it from being a long-term investment tool. Bitcoin's limited supply on the contrary, decentralization and transparency, easily stored and easier international transfers from banks make Bitcoin a reliable investment tool. If your investment is in an amount that will be forgotten for you and will not be needed immediately, it may be positive to store Bitcoin in times of economic crisis but if your investment can be needed at any time, it will be useful to turn to gold where volatility is at a low level in times of crisis.
August 18, 2023, 02:16:39 AM
Well, its history tells itself that bitcoin is somewhat of a safe haven but not totally because we know of its volatility, but when we base our decisions on history, we will know that the price keeps getting high, meaning if you put your money way back in 2016 into bitcoin, then for sure your money hasn't lost its value, even if you gain tons of profit on it. So I would probably say yes, but it is still not recommended because anytime it could be a price dump.
Price Volatility is the biggest concern of Bitcoin mainstream adoption. Yesterday I Price of Bitcoin was over 29k and this morning its around 26.5k, CMC says that Bitcoin went down to 25.5 before making a rebound. So yes you need to remain mentally ready that your investment may get struck for some times.
We need to balance out between Bitcoin and real world financial system like fiat. Both have there pros and cons, just don't put all your eggs in one basket.
August 18, 2023, 01:36:41 AM
If the economic crisis doesn't affect how our technology works... for example the internet and all its infrastructure, then of course bitcoin & all cryptocurrencies would fit in well but unfortunately not so many people are familiar with this technology, which tells me we could revert to much simpler ways of trade such as the barter system!
Btw, in a case of an economic crisis...two things might happen, either bitcoin crashes with fiat and all other related systems or it will jump up as demand will be so high as everyone tries to get their hands on some crypto coins...so not an easy replacement if we think about it.
I do not think that it would be anything like that at all. That's just way too much doom to think about at this moment and it shouldn't be really that much of a big deal at all. I understand that some people may think that it doesn't work that way but that's eventually not a big deal at all.Btw, in a case of an economic crisis...two things might happen, either bitcoin crashes with fiat and all other related systems or it will jump up as demand will be so high as everyone tries to get their hands on some crypto coins...so not an easy replacement if we think about it.
Just focus on how you could make a profit and that should be the important deal. Get as many bitcoins as you could afford at this moment and you are not going to face any troubles like that in the future such as no internet and all that. That would require something like maybe a nuclear war or something to happen and I do not think that such thing will happen, it would be very unlikely and should not be considered a possibility.
August 17, 2023, 04:38:59 PM
there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
If there is a financial crisis you would find many investors coming into this space and the market might be rallying because of that but it is a highly risky market considering the volatility level and you cannot compare it with gold at this time (had a different view earlier but considering the price now, view changes), i would not necessary call it a safe heaven unless you were smart enough to enter at the bottom. August 17, 2023, 11:25:19 AM
If I look at history, there is no investment instrument that maintains value at the beginning of the crisis. Bitcoin is also on this list, and there is no guarantee that the recovery history until it gets a new ATH will be repeated.
Ideally, you can think of any safe haven if the crisis has been going on for some time and you've convinced yourself that your survival will be fine for a potential longer crisis.
Ideally, you can think of any safe haven if the crisis has been going on for some time and you've convinced yourself that your survival will be fine for a potential longer crisis.
August 17, 2023, 09:09:20 AM
OP, zoom out Bitcoin's chart to the maximum and tell me if that isn't a safe haven.
So, we need to zoom out past the period of economic crises that has set it to see the "safe haven" aspect.
Kind of....weird, let's say at least, isn't it?
Zoom out past the period of economic crises? No ser. You zoom out to see the REAL trajectory. Because we don't have more than 50 years of data for Bitcoin, let's use,
GOLD - Zoom out to the maximum.
https://goldprice.org/gold-price-history.html
The DOW JONES AVERAGE - Zoom that out to the maximum.
https://www.macrotrends.net/1319/dow-jones-100-year-historical-chart
That's the trajectory WITH ALL the economic crises in their history. Why? Because unlimited fiat.
Plus in a philosophical level, didn't Satoshi build Bitcoin because "Chancellor on brink of second bail out for banks"?
- The network has ossified towards only 21,000,000 coins to be mined and there's unlimited fiat. BRRRRR. With Bitcoin's growing popularity, adoption, and demand, where will its trajectory be in a zoomed out chart? Down?
August 17, 2023, 09:04:26 AM
there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
what do you think ?
As far as I know, there will always be impending economic crises both real and being stirred up by the government to cause fear and panic. What you should have noticed is that the price of bitcoin is not in any way affected by these news. Infact what we are observing are people adopting digital currency as a way to save their wealth, that is a store of value. It is just like an inverse relationship where the more they talk about the "impending economic crisis" the higher the rate of people adopting bitcoin to escape from them financially and otherwise. what do you think ?
August 17, 2023, 08:34:08 AM
Hello everyone,
there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
what do you think ?
I don't think so because the price of Bitcoin is very influential on the global economy and even like this year there was a deep price correction caused by an increase in currency interest rates and that had quite a big effect on Bitcoin price movements.there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
what do you think ?
Likewise, when there is an economic crisis, it is clear that Bitcoin is not a safe place to take refuge.
Bitcoin price movement is so significant and fast, it's actually very dangerous.
Honestly, bitcoin is only suitable for investment, it is not suitable as a safe haven when its volatility is too great. We can clearly see that by what happened in 2022 or just with the news that the Fed will continue to raise interest rates immediately causing bitcoin to be dumped. A volatile asset every time news is released, it is not suitable as a safe haven for us if there is an economic crisis. If talking about assets as a safe haven, I still think that gold is still the most suitable asset.
August 17, 2023, 07:46:16 AM
If the economic crisis doesn't affect how our technology works... for example the internet and all its infrastructure, then of course bitcoin & all cryptocurrencies would fit in well but unfortunately not so many people are familiar with this technology, which tells me we could revert to much simpler ways of trade such as the barter system!
Btw, in a case of an economic crisis...two things might happen, either bitcoin crashes with fiat and all other related systems or it will jump up as demand will be so high as everyone tries to get their hands on some crypto coins...so not an easy replacement if we think about it.
Btw, in a case of an economic crisis...two things might happen, either bitcoin crashes with fiat and all other related systems or it will jump up as demand will be so high as everyone tries to get their hands on some crypto coins...so not an easy replacement if we think about it.
August 17, 2023, 07:32:16 AM
Hello everyone,
there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
what do you think ?
I don't think so because the price of Bitcoin is very influential on the global economy and even like this year there was a deep price correction caused by an increase in currency interest rates and that had quite a big effect on Bitcoin price movements.there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
what do you think ?
Likewise, when there is an economic crisis, it is clear that Bitcoin is not a safe place to take refuge.
Bitcoin price movement is so significant and fast, it's actually very dangerous.
August 17, 2023, 05:25:49 AM
This means that we are going to end up with a return that would be basically keeping its value and that's about it. This isn't really something we should be aiming at because it would be better if we could end up with a return that would be bigger.
~snip~
~snip~
You and I and the majority have no influence on the price of BTC and that game is far beyond our capabilities if we take into account all possible manipulations or black swan events. In such an equation, there will always be more than one X factor that you cannot predict, and that is why I say that it is not wise to throw all your cards into Bitcoin, regardless of what you think about it. It's definitely easier to be in all of this if you don't look at Bitcoin exclusively from the angle of profit, but that's obviously something that few can afford.
But , but...all you need is buy Bitcoin!
It's proven that no matter what happens, even if an asteroid wipes all life from the Earth when the halving happens we're going to be rich!
I really don't understand why some think that crumbling economies, people out of jobs, bankruptcies, and suicides left and right would magically make all unemployed and bankrupt people pour their debts into bitcoin, and although I try every single f* time to ask these guys why do they think this will be the way things will unfold I still haven't got a single answer that is not signature quota material.
It's proven that no matter what happens, even if an asteroid wipes all life from the Earth when the halving happens we're going to be rich!
I really don't understand why some think that crumbling economies, people out of jobs, bankruptcies, and suicides left and right would magically make all unemployed and bankrupt people pour their debts into bitcoin, and although I try every single f* time to ask these guys why do they think this will be the way things will unfold I still haven't got a single answer that is not signature quota material.
You cannot expect people to behave differently from the environment that shapes them, whether it is the media, politics or social networks, everything is in the service of almighty capital that can convince billions that a virus with a mortality rate of less than 1% will decimate humanity or that it is actually a good thing that the authorities are printing money and dropping it from helicopters.
For some, Bitcoin is a solution for everything, but at the same time, the majority have never used it to pay for any goods or services, but are waiting for halving to do its magic or for someone to invest trillions in BTC and make them rich.
August 17, 2023, 04:36:59 AM
Hello everyone,
there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
what do you think ?
there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
what do you think ?
Although inflation remains high and many uncertainties in the economy remain unresolved, I do not think another wave of severe economic crisis to occur. All the bad things happened in 2022, and we are getting through it step by step, things are still bad but in my opinion, it is getting a lot better than 2022.
Almost during the economic crisis of 2022, all assets are severely affected and bitcoin is no exception. But this year, bitcoin has had strong rallies while other assets remain in the doldrums, not much better.
Bitcoin is a store of value or a safe haven depending on how trustful you are with it. Because its volatility is too great and many consider it unsuitable as a safe haven.
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