Topic: Financial crisis 2.0 - What will happen to bitcoin in the next crisis? (Read 3478 times)

It's hard, almost impossible to predict what people will do in a moment of crisis, even I don't know what to do with my cryptos, i'm planning to hold, obviously, but I have to adjust my plan along with the situation

In my opinion, people will sell BTC, afraid to lose money and will hold fiat cash

1 of 2 things.

1) IF Bitcoin and Crypto are simply propped up by people using the extra cash in good economic times to buy and HODL Bitcoin. Then as an experiment, it will fail IMHO.
A person under the above circumstances MAY wish to buy BTC and HODL, but due to an economic downturn will not. Well, damn that would be bad for BTC/Crypto.

2) If (1) is not in the cards above. Then IF Bitcoin and Crypto are used as I suspect, as a hedge against bad times and/or corrupt or inflationary governments to
help the world. Well, an economic downturn will only help BTC and Crypto. The store of value argument will be a fact and proven under such circumstances.

Chump or Champ. Time will tell I guess.

Brad

Well if the crisis is as big as we imagine then there is no doubt that many stable coins will begin to fail but at that point those that are holding bitcoin are not going to want to receive fiat in exchange, remember people will want to get rid of their fiat and will look for a good currency that is not crashing and cannot be printed at will, so most likely you will not see bitcoin holders exchanging their bitcoin for fiat instead you will see them getting hard assets like gold or real estate for their bitcoin.

Could you give the example about bitcoin crisis right now? I think bitcoin is fine just lower price only and no negative issues or news about bitcoin want to banned, you have trust your money in bitcoin and never trying for give bad information about bitcoin faced crisis without have proof to show us about bitcoin situation.

I really hope the financial and economic turmoil shows up to the world faster than what is expected. That is the only way people are going to figure out how horrible things have become, trillions of dollars are in debt, and businesses are dying as the clock ticks every single time, and there is hardly any measures taken to avert any kind of crisis. No one wants to believe that the world is in the most shittiest place it has ever been, and they have no qualms ignoring the issue. I keep saying this over and over again, but for some reason I keep overthinking about all of the possible outcomes that could be made out of the crisis that will hit us sooner or later, and no matter how many conclusions I come up with, the reality will be very different, and bitcoin will probably won't be near the scene either. People don't go waste their money on investments, or any kind of currency trade in times of crisis, they save it, or go through hell to get all the things they could possibly want to save themselves through the crisis. Don't expect something that Mr. Robot envisioned where people where paying in crypto during a financial crisis, cause it sure as hell won't go that way.

Any very strong sell off on markets will cause bitcoin dump
Bitcoin is emerging asset class.Those kind of assets are failing first.But after sell off there is very strong rebound
But many depends what will cause that crisis.High inflation in USA or dollar loosing his dominance will casue very strong run on both bitcoin and gold

The following article is interesting. It's written by someone who spent a lot of time trashing bitcoin back in 2017 and 2018 but has now changed his mind:

https://www.bloombergquint.com/business/bitcoin-and-other-cryptocurrencies-are-better-than-gold


I recommend reading the whole article - but it seems to me that the 2020 US Presidential election is going to be important for bitcoin. If someone like Elizabeth Warren becomes president, and there is modern monetary theory (printing money and just giving it out), a lot of investors will go into bitcoin. Even if Trump wins, he's likely to keep increasing deficits and trying to force the Fed to cut interest rates to weaken the dollar.

Let us step back and reminisce why Satoshi Nakamoto generate bitcoin, he created the btc in the time that it has a huge economic crisis because in that moment he is not pleased with the situation. You see, if not because of the economic crisis Satoshi Nakamoto will not think to create this kind of digital asset. In many ways still a kind of bad situation will create a good innovation that helps people. So being worried for the economic crisis has no room because btc is volatile, no one will know what happen next.

Well, I will oppose your personal opinion. Gold and silver are a physical asset it is different from digital assets which bitcoin or in general cryptocurrency. The market price of these metal assets has a slow price movement and I don't know you can easily get profit. Well, I do believe that in the next crisis bitcoin will still remain since it is already known to many people easy to hide your asset or even you as a user as well. Bitcoin price may go at a lower price but since the value of it is volatile we can guarantee that the value of it will rise up again no matter what crisis may come.

This crisis will come much stronger than 2008, we can expect something booming, as many countries are already in recession, and when the crisis comes, it is better to run to the hills.
In my view, the only safe investment in this scenario would be gold and silver.
But that's just my opinion.

I think that if next big recession happens then it will hit everything - even cryptocurrencies. There will be too much "blood on the streets" and majority of people will try to cash out as much as possible just like it happend in 08/09 financial crysis where indexes were down about 50% if I remember correctly

As soon as the next crisis will arrive and I'm sure its not far away as the charts point in that direction , we have inflation in most of the countries , price exploded to new highs we will see a BIG movement from FIAT to cryptocurrencies and Bitcoin might be the saver but what will happen with Tether?

Personally I don't see how Bitcoin could save anyone from the crisis and instead we could see bitcoin going again under 3k$ but lets hope this will not be the case as someone said in this forum , bitcoin has 0 volume and its kinda true , without blockchain , bitcoin has almost 0 value which is sad if you ask me considering the current price. Furthermore until crisis come just stack the bitcoin so we will all be ready when it comes.

In my opinion this is what it is going to push adoption to insane levels in a short amount of time, a crisis will come, I do not know exactly when but it is inevitable and when it does and people finally realize that they have been deceived for a very long time they are going to do everything in their power to try to protect whatever wealth they have left, and while gold will without a doubt perform greatly during that scenario bitcoin is way more practical because you can move huge amounts of money in your smart phone and no one will ever know.

Bitcoin and allied cryptocurrencies are considered at par with stock investment by many. In case of recession like 2008, cryptocurrencies would suffer similar blow like stock market. People will prefer to keep their monetary value in liquid form. Hence, like other investments and securities, cryptocurrencies' value would fall too. It is natural tendency of investors to follow conservative behaviour during recession, I don't see any reason why people would treat cryptocurrencies any different.

Definitely people will sell their asset if the next crisis happens also people will lose trust and never will not take risk in the near future, thus things depend on the way how we handle.   Crashes happen due to volatile market and the power of big Whales make it happen to benefit them, economic crises is dependent upon the human spending and this triggers the economy down.

If you lose your job and the only way to pay your mortgage bill is by selling assets, you're going to do it. Whether it's a second car, some ETF's or Bitcoin.

It will depend on how we will handle it now so we will be ready if ever unforeseen situations happen. We will not need to cashout our crypto in times that crisis occurs, or we have enough saved and earned through our trading or from our salaries. Crypto will be affected if many are not prepared making their financial status better now since their only option will be use their investment.

I think that if there is a financial crisis in the world, the crypto currencies will be positively affected by this crisis. because people will look for a safe harbor to protect their money against rising inflation and I think bitcoin is the best option for it. Stable coins are also a very important option to protect money from the bank.

I don't think this is some utter truth. There might be a situation where the economy is so much dumped that people even try to stay away from bitcoin. Moreover at the time of such crashes people try too stay liquidated as much as possible. If the traditional markets are going down there is no way that people will  enter this risky market.
Exactly people would not jump in this risky venture because generally most of the people run towards the government in times of such fragility and crashes. While governments are surely never going to advocate cryptocurrencies as it will flush out even more money out of the economy making it even more difficult to handle the economic meltdown.

During times of financial or economic crisis, spending is lessened up to an unusual level. That means a massive decrease in economic activity. If that happens, I doubt if investment into Bitcoin will take a surge. Well, it is possible because Bitcoin is proven to be independent from the traditional economic assets or indicators, but it is also a possibility that it will go down together with the rest of the economy. Bitcoin, after all, the same with the rest of the cryptocurrency world, is dependent on human spending. If the spending lessens, it could extend up to crypto trading and its demand.

Well my opinion is that bitcoin value will rise meteorically in times of financial crisis. People will want an accessible investment vehicle for their money and crypto has always been a good option aside from gold.

Just take a look at Zimbabwe, people flocked to Bitcoin to preserve value and that drove the price up at their local exchanges.

These days everyone seems consider everything overpriced ... stocks, indices include cryptocurrencies etc. consider it as a bubble and then start to relate this to the last financial crisis that occurred 11 years ago, i don't think this has a direct relation.

People just looking for an excuse on what's happening right now and they found that the financial crisis 2.0 is the one that fit with the current condition which I personally tend to disagree.

There might several huge financial problem such as china vs US trade war causing any financial market collapses... free fall etc. Yet we're not experiencing it right now or got some signs of it? No. Bitcoin itself would remain unpredictable wild.

If there is a big recession like that in 2008 and we enter a financial depression phase I think many will be chasing out their crypto, but we may also see a lot of market volatility as people desperately try to make fast money in trading cryptos as well. The mega-rich will again get to buy and hodle even more cheap Bitcoin and other sound cryptocurrency assets and control the market even more because they will own an even bigger chunk of the crypto pie that they already own now. This is how it has been and will always be. The poorer and middle-income folks will be selling off every asset they have cheaply to stay alive, while all the big Guns will be blazing and scooping up all the cheap mess the rest have left behind in their panicking wake. I also believe more will invest in gold, as gold is always the very solid asset people invest in and trust in times of acute crisis.

IMO this crisis also affects the crypto market. The need for money would increase and this inflation would cause panic in people.

It could be the reverse, that depends on how people will evaluate it at that moment.

It is also possible for them to turn to low volatile investment types. Maybe less losses.

It depends on the nature of the crisis. If it was to be hyperinflationary, then the answer would be simple - bitcoin, given its decentralised money supply, will hold its value far better than conventional fiat in that period of time. Especially when you consider the increased demand for it as a store of value.

If it was to be recessionary, e.g. a popping of a bubble, it could be hard to tell.

I suspect that people would initially rush to traditionally accepted safe havens, like T-bills, gold, etc. at a period of time where BTC value may dip slightly. But as time goes on, and investors recognise that bitcoin is really one of the best assets in storing value away from the fiat economy, demand will grow.

There's only supply and demand basis regarding the price of the bitcoin, I think bitcoin have a strong community to support it. Yes, there's pumps and dumps but the most important thing is the bitcoin is still going upwards as time passes by. Mass adoption is needed if we want bitcoin to be our mode of payment.

People do not pay their mortgages "no matter what", in 2008 there was tens of thousands of people who got kicked out of their houses, but when a crisis comes and the financial world collapses even if the banks seize all of the houses at the first sign, they still have to sell them and they usually sell them for far cheaper which means they will have to both wait and also not make all of the money back.

It is really not an easy task and proof that people sometimes do not pay their mortgages, so they may not sell their bitcoins if it is not even remotely close to their mortgage. Sure if they have to have their cars repaired or something they might sell but a guy who has 100k mortgage debt do not have 100k worth bitcoins, they either have zero because they are in debt or they have a very tiny amount.

If there is a economic crisis world wide people will sell off the assets that will have direct implication to their total asset and will look for assets that are not controlled by any government as these crises are a result of bad policies by these politicians and BTCitcoin is an asset which is decentralized and can be trusted than any other investment during recession. Other than these where do people invest during recession, no investment is safe during a recession .

Imagine someone is paid 0.20 bitcoin monthly. This occurs after all 21 million bitcoins are mined.

Now imagine that the total money supply of bitcoin is expanded to accommodate a maximum of 42 million bitcoins.

A worker being paid a static sum of 0.20 bitcoin monthly could witness their spending power decrease significantly as the total supply of bitcoins trends towards 42 million. That example forms a microcosm for what is happening in many modern economies. And perhaps a decent example for bitcoin's deflationary model being an optimal design choice.

With a significant portion of an expanding money supply going towards debt rather than circulation, the effects would be near to the same in terms of it devaluing the purchasing power, standard of living and net worth of consumers. In my opinion anyways.

I'm 100% in agreement with you and your conclusion on the matter.
However M2 is not the actual money printing schematic, it is mostly money created through debt.
As I said, they take it on credit from each other and you must know that FED has no other way to introduce money (M1-cash) in to economy than making a public debt. Printing itself is like 0.8%[?] of all the assets. Printing is not a problem, fractional reserve is.

Nations don't habitually overprint currency?  



The most glaring chart is japan's high money supply inflation in spite of its notoriously low birth rate. Inflation of money supplies is far outpacing population growth in every instance.

I think the united states has laws against debasing or devaluing the money supply. It does nothing to deter it from happening. There is considerable pressure on regulators to follow political narratives. We have witnessed the official definition of terms like unemployment being rewritten to illustrate a more aesthetic view of the economy.

Inflation is no different. In the united states, the official definition of inflation was rewritten years ago if I remember correctly. To paint a rosier image of the economy. Under the old definition of inflation, the US would be experiencing near to 10% inflation annually.

Money is being printed to oblivion around the world. One key reason why economic outlooks are bleak atm.


Throughout history, governments have typically operated as machines of wealth redistribution.

This means governments collect a high percentage of taxes from poor to middle class earners and redistribute that wealth to the rich who pay a significantly lower percentage of tax.

Deflationary currencies are deemed "bad" as they limit the degree to which wealth can be redistributed from the poor to the wealthy.

Borrowing is deemed "good" as it allows for governments to spend more capital on wealth redistribution than they currently have on hand.

This doesn't imply that wealthy demographics are evil or immoral. Elites have real knowledge and comprehension which allows them a superior position. For whatever reason, other demographics cannot find it within themselves to be skeptical or question the status quo sufficiently to begin to address underlying reasons behind inequality in taxation, wealth and wages.

People love to over-romanticize things within a "one percenters are so evil and corrupt" vein. While playing the victim card. I think the harsh truth is, everyone plays to win. Those at the top of the food chain are a little smarter and work a little harder at it.

When the crash comes I think crypto is going to fall with it, people will sell assets to pay their mortgage bill regardless of type. However I think once it has settled, once big money starts buying up assets cheap, crypto is going to be one of them!

I just notice that some of biggest rich family just start hold a lot of money, cause The next crises is coming.
I dont know what you think about bitcoin in this scenario. Is All impredictible.

We need hold our belts and wait for the Russian mountain

The problem is that they don't actually. Printing is usually mechanism that is leading to destabilisation of any given fiat, most central banks have in their status, that they will protect stability of a coin they govern. Law usually is set this way, so that central simply cant print in to oblivion. The thing that they do is much, much worse. They borrow. Borrow from each other at the expense of future generations. Effect is of course exactly the same, just like you described but stable, slow and semi-predicable.
Politics of acceptance for the inflation is based on a false premise, they (the bankers of today) where taught for their entire schooling, that deflationary currency is bad for the macroeconomy. 100 years ago, nobody was aware of services driven economics. It was all about industry but times has changed. Today we spend most on services not physical goods and that's why deflation proves itself quite useful because people are addicted to those services. They cant imagine life without them, so they pay despite their money gaining in value, system spins the same way, if not faster. Bitcoin proves this.
In my opinion crypto will retain it's position as safe-haven during the upcoming crisis, it will be the best store of value. 

I think that's a great  and difficult argument. In my opinion there will be lot of possible scenarios.
If I had to bet 3 things may happen:
 
1. Mostly wants to cash out dollars and price goes DOWN (most possible scenario imo)
2. Mostly want to invest in crypto cause they think it's the future and accept it has an alternative form of payment -> price goes UP (unfortunately I don't see this scenario possible right now)
3. BTC price will remain almost the same (or increase a bit) accordingly to USD/FIAT loss of value and things remain the same as now (more or less)

In my opinion, investing in bitcoin in particular or cryptocurrencies in general has a HUGE risk.
The reason is that our market is being run by the capitalization of many sharks. As you know, bitcoin has no value when it is not run by anyone, its value grows because it is manipulated by sharks.
and a market full of manipulators, the level of risk in investment is enormous.

AFAIK inflation growth has outpaced average wage growth for many years since the 2008 crisis. The cost of living expenses is growing at a faster rate than wages. This negative trend is triggering economic slowdown throughout the world as consumer spending fails to keep pace with the appreciating cost of things like real estate.

To compound this problem, all nations are overprinting fiat currency in an effort to over-compensate which further devalues the purchasing power of consumers, further exacerbating issues relating to stagnant wage growth. Economic slowdown is the result. This produces a vicious cycle where even many banks are becoming fiscally insolvent due to their leveraged holdings being dragged down in lock step with dwindling economies produced by wealth and wage inequality.

It wouldn't be too surprising if we have a real world answer to OP's question before long.

Bitcoin will definitely retain its value better than overprinted and hyperinflated fiat currencies. I think bitcoin also has advantages over precious metals or bonds which could see its value skyrocket in times of recession/depression. The real question is whether state based regulation would condemn or embrace bitcoin and crypto currencies.

Would nations like the USA embrace bitcoin as a means of salvaging standard of living, were the dollar to devalue/hyperinflate. Or would they instead opt for a policy where they ban and repress bitcoin, even though it could be their best option for economic prosperity and stability. And also how effective/ineffective would attempts at bans or regulation be.

the possibility of cryptocurrency price movements in the future will have a downward movement in prices because this may be influenced by the world economic crisis to be more terrible, many do not trust digital currencies anymore and many people who want to save their assets without having to use digital currencies again.

Price of bitcoin will get hit like all other assets in the world initially but later this may leads to the increase of adoption to next level since the economic crisis of 2008 create the need of bitcoin and the next stage will make it realize why we need to the most people with common knowledge.

I think if that should happen, bitcoin will be preferred by people because at that time , because of demand, the price of bitcoin will increase. So saving your money in bitcoin will not only be a secured instrument but investment as it will keep appreciating.

I don't think that Bitcoin will be directly affected by crysis since there is no link with traditional financial system. However, because of crysis demand for Bitcoin might increase because some people will try to find safe haven in it and thus the price might be affected. But this is just a theory and what exactly happens it's hard to tell.

We only have to look at other examples like Zimbabwe and Venezuela to see what happens when things start to fall apart with their local economy and to see how the normal citizens flocked to Bitcoin investments to safeguard their wealth against hyperinflation and other economic problems that has a disastrous affect on the value of their wealth.

We see record high prices for bitcoins on their local exchanges, when they have problems with their local economy and if this happens with a global economy, you will see record high prices on all the major Bitcoin exchanges. 

If there happens a crisis, surely this will affect bitcoin. The reason I find is the usage, we can expect a much increased usage of bitcoin and other cryptocurrencies by that time. Now when we compared to the economy contributed by bitcoin and other cryptocurrencies what we have is very small. This is one of the big reason bitcoin not getting affected by these crisis.

Every year the adoption, usage, and as investment bitcoin get its market widened. So, when there is a huge contribution surely there will be some impact over bitcoin as well, which might get overcome gradually same as the what happens now.

The reason why bitcoin will be better than gold when it comes to profit is that dollar will lose value, and when dollar loses value, it will make the fiat cost of purchasing one bitcoin to be very cheap, which people can accumulate ahead of when the financial crisis will be over, when the financial crisis is over, definitely the value of dollar will appreciate also, and this means there will be enough profit for those that purchases bitcoin during the financial crisis.

Gold is also good but, the increase in gold can never be as high as the increase that you will get from bitcoin, the volatility of bitcoin create a very huge gap for people to be able to make huge profit while gold does not give that chance. The only difference between bitcoin and the gold is that gold is less risky.

When a financial crisis gets out of hand most of the time banks do limit the amount of money you can withdraw to avoid a bank run, but the solution to this is easy do not store the majority of your money in bank institutions that treat your money as if it belonged to them or you could invest in assets that do well during a crisis before the crisis happens, gold and silver are the perfect example of this and there is a good chance that cryptocurrencies like bitcoin and ethereum could perform that task as well.

It is at least worthy to keep your purchasing power the same. The trouble with all other stocks and gold and what not is that your money stays around the same (or make a bit of profit at most) and then you still lose purchasing power, whereas in bitcoin if the price of bitcoin goes up according to how much purchasing power you lost then you still can buy the same things, it is a temporary situation where you can't continue to make that much money but at least for a while your investments wouldn't lose value.

It is risky and something we shouldn't hope that would happen but at the end of the day if it is gonna happen anyway then I would rather stay on bitcoin than anything else, its a very risk free compared to all other investment options to be honest.

Bitcoin was a response to the financial crisis last time around. If there is (when there is) another financial crisis, then crypto prices should in theory rise as crypto becomes a bit of a safe haven from fiat. However one big problem with this is that crypto prices aren't exactly stable themselves... so I would think a financial crisis might have some positive effect on crypto, but not a huge effect. Unless we have instances of currency collapse/hyperinflation, in which case it is still probably more likely that USD will be the default safe haven.

I do think that any new financial crisis won't really be a new thing, but more of a consequence of the last one not being sufficiently fixed. The problems of last time have been papered over, but there is still huge fundamental weakness. It is this fact - that governments are either unwilling or unable to fix the problems of fiat - that will in the end lead to crypto becoming the standard system.

I think people will sell the coins and use the money to buy gold. When a crisis or recession comes, people tend to buy more gold and hoard it for a few years. Because the price of gold is always stable and always increases when the economies of some big countries have problems.
As for bitcoin, I don't think so many investors believe it.
Although Bitcoin has a deflationary mechanism, its value is being decided by the market. And when the crisis came, you knew what was going to happen

The scary part of these financial crisis is that people think bitcoin goes up in price but sadly the dollar goes down in value and that causes us to have less purchasing power with the money we make. Say you make 100k a year (not rich in USA but not poor neither) and then one day something like 2008 happens right?

Well, you keep on making 100k while everything else gets more expensive, next year they give you a small raise and you start to make 105k or 110k at best whereas the things you can buy with it are already closing to double the price. That is why I am afraid that bitcoin is not going up in price, it never did, maybe the first few years it might have but these late 2 years have been all dollar losing value, which is good for bitcoin holders but bad for the world.

You make the same errors as many people who correlate any commodity, assets to fiat currency.

Like in math, you can not measure something in conclusive way,
if You change with every measurement, your metric.
If we all agree, 1 feet is a specific distance, we all agree about a certain distance measured in 'feet'.

So how silly it is in fact to measure a commodity in dollar, as we know, the dollar is printed just like that by
the mint to cover debts ? And the same dollar is not bound to the gold standard.

One reason to have a gold standard was exactly to have at least a stable metric.

So those who state, bitcoin is too volatile, they do express bitcoin in terms of 'fiat', 'dollars'.

Bitcoin has and will be seen in close future as a stable metric. So it will be used as the base to state
the value of others assets, commodities, fiat currencies.

For those reasons:
a) bitcoin is neutral
b) bitcoin is without borders
c) bitcoin is limited in amount.
d) bitcoin is worldwide accepted.
e) bitcoin can not be generated just like that. It has to be mined.

So in times to come I recommend to have at least
physical gold and silver in your personal area, including Bitcoin on HARDWARE ledgers.

All the Best,

Jurgen E. G. Debo
Heliophorus
aka
realSatoshiN

Bitcoin is too volatily for correlation with standart market

I think at the time of crisis Bitcoin will be most sought after since people can support everyone globally and indirectly one can earn and get through this .
This is really a perfect solution because we all know that in some countries it hits harder therefore the unfortunate countries can have. Support system.
People will switch to Bitcoins in the time of crisis is what I think.

The 2008 crisis was known as the subprime mortgage crisis in the United States. Debitors with bad portfolio loans are given housing loans in the United States. Actually it is not fair to other countries because the problem is in the United States, but the impact is on many countries. What is clear when the 2008 crisis the stock market fell and unemployment increased.

My prediction is that if the second 2008 crisis occurs, then Bitcoin might be used to become one of the solutions out of the crisis as has been done in several countries before (namely Greece, Cyprus, Venezuela and etc). For individuals, because the era is the era of financial technology, many traditional investors are looking at the digital market as a tool to make profits in times of crisis.

Usually, the hardest crisis impact is felt by countries or individuals who have a lot of debt or are poor. For wealthy individuals, they save quite a bit. I take a simple case, India is currently experiencing a recession, but imports of tertiary products to India are still high and continuous (imports of shell shells for crafts).

This is like the 3rd thread I've come across asking the same question--I'm not sure why people are thinking we're in for a financial crisis anytime soon (though it's possible).  The economy looks pretty strong right now, at least in my country.

As far as how bitcoin would fare if we had a 2008-type scenario tomorrow, I'll answer it in the same way I answered in the other threads: bitcoin is not a safe-haven asset and is not an investment people would start pumping money into if they're trying to keep their money safe.  In fact, it's probably the worst thing anyone could do in the midst of a crash.  I would expect precious metals to start moving upward, which they have been; and perhaps real estate prices to rise.

The other point I made previously is that bitcoin was in fact around during the entire 2008-2012 crisis and did very well.  On the other hand, stocks were also rebounding significantly right after the Dow sank to 68XX or whatever the low was in 2009.  Ultimately, I really don't know how bitcoin would weather another big recession, but I do know that investors tend to put their money in less volatile assets during those times and if I had to guess I'd say bitcoin might not fare very well.  I'm also hoping that the next recession isn't right around the corner, though I'm pretty sure we're due for one eventually.

What we experience this year is predicted to be much worse than the year 2008. People always wants their investment to grow, and if there isn't no big growth at least it should not end up losing. Considering this more investment from different sources got moved to gold. This got reflected with the big growth in the price of gold over the past few weeks.

Very few took into consideration the cryptocurrency, we haven't experienced big crash in the market of cryptocurrency. Years back too there was some form of economic recession experienced globally, by that time bitcoin didn't got dumped. This is why bitcoin growth will be mentioned unpredictable. If some financial crisis happen in the future more people will move towards cryptocurrency same as people at present moving towards gold.

There would be both type of people for sure. Of course, there will be people who put their money into gold type of stuff so that they could remove their risks from the stock market and be more safe however that doesn't mean everyone will do the same. Hell even when stocks went down in 2008 there was people like Warren Buffet who go hard into the stocks because he knew that stocks hit the rock bottom and from there if they are not gonna go bankrupt then they are going to make a profit in the long term, dude literally made billions of dollars in few years thanks to investing during 2008.

However, aside from those people there will be few who will put their money in bitcoin or any other crypto to make up for the losses and those will help us a ton in the end.

The last time financial crisis occur, oil and commodity prices shoot up to the moon buoyed by the feds bailout money.
Now another financial crisis is coming, oil and commodity prices are kinda rising..
I believe bitcoin will be the next target for financial speculators to hedge the next financial crisis looming.

there are no bitcoins before so we cant compare the results that will be happening if there will be another financial crisis  . you once said that people will look for investments so bitcoin and other cryptos can be there best option because this assets are not connected to banks and other centnralize institutions that will be also affected by the crisis  .  as a result bitcoin will inflate or increase its value   . you also said that people  see crypto as risky . that was not new , even before crypto was released there are already people that are avoiding it but look at cryptos now , they are still healthy  .

For sure, people will look at other ways to save their money, and maybe they will move their money to invest in bitcoin. That is the first example. The second, they will search and move their money into gold or else.

The market will be in chaos, and every people want to save themselves without thinking about others. The government will busy to make people calm down while they are working to handle the situations. But we don't know if the next crisis will happen or not and we could hope that it is not happening in our ages.

I think prices of cryptocurrencies could be  affected
Guess a developer who understands the causes of global financial crisis, could effectively code a defense against it. The only defense I can think of is a self-sustaining & autonomous Crypto economic system that is independent of nations, central authorities, individuals etc,. It would be great to have huge part of the cryptocurrency tied to physical & easy-to-move assets that can't be easily seized.
 The cryptocurrency could work in such a way that if an important part of a Blockchain fails others parts of Blockchain don't equally fail.

The cryptocurrency must be a representation of an ideal decentralized cryptocurrency.

We have seen how bitcoin sort of becoming a saviour for countries like Venezuela, Argentina and Zimbabwe. A good read as to what happened in 2008

https://www.thebalance.com/2008-financial-crisis-3305679

Obviously, it's going to be two fold, maybe we can see bitcoin dumping, as people are going to liquidate, because mostly in a financial crisis, there's a lot of irrational behaviours from average joe to huge investors.

On the other hand, there could be individuals who can see crypto as a safe haven and willing to store their wealth, specially on bitcoin.

I understand what you mean about satoshi, but situation bitcoin is still in area of doubt for investors where they still have uncertainty to put their money in bitcoin when crisis takes place. Maybe for investors and crypto players already know how bitcoin runs with high volatility, but how do people who are outside of this crypto who do not even know crypto more closely. If we see, there are still many whales who are not familiar with and convinced of bitcoin.

Well, I'm sure this big investor will still trust gold compared to bitcoin because gold is able to survive when country's financial turmoil worsens.

If crisis does come, eventually every now and then there will always be one around..
If Fiat money will be affected then bitcoin will surely take a striking blow. Bitcoin has been
struggling ever since it's big spike 2 years ago.. but it's gaining again in the past year, slow
but good. I think it's headed to a good direction from here on, but if it bumps into some
kind of a financial crisis, it's going to be disrupted. Some might take this as an opportunity
to purchase bitcoins and hold. Buy low and sell high at some point, invest and diversify.
There's only one way to find out I guess.

I suppose the one thing you can point to with crypto is that it's nowhere near done growing.

That may not count for much if people are only looking for survival but you never know.

This is because after WW2 each stock market/financial crisis is initiated in the USA once in every 8-10 years. And 2008 was 11 years ago already. 

What is this, the 10th thread this year?

Seems like everyone and their grandmother is expecting a financial crisis/recession to hit soon.


There will be blood in the streets. Gold wasn't immune in 2008, you think BTC will be?!

I will predict people will move their money to bitcoin and hope to gain from the cryptocurrency global market and we will see a great spike in the price of bitcoin sending further wave to the public as a call to invest in a more profitable currency than leaving their money in shares and dying companies. The need to take bitcoin education serious.

I don't know how effective the next financial crisis will be on bitcoin and crypto world but one thing is certain, it might open new opportunity for those who haven't accumulate bitcoin because of its costly price,if bitcoin price get affected i will gladly invest alot on bitcoin

Can’t really tell what is going to happen from one month to another, let alone what the scenario will look like during the next global crisis. I figure some of the factors to ponder would be such as there:

- Economies that spur towards high levels of inflation are more prone to take a serious look into BTC in order to try to avoid the depreciation of their assets .This is what takes place in Venezuela nowadays – some moving to stablecoins as a second step.

- Economies that are not marked by high levels of inflation will need to cover a scenario of cutbacks on jobs and, in general, less economic activity. That would likely mean that particulars will probably cut down on purchasing BTC, using their savings to cover for their needs. If prolonged, it could lead to people liquidating their BTC gradually.

I can’t see people rushing to purchase BTC, considering it a safe haven for their assets in general, except for those in a scenario of hyperinflation.

Yeah.. I really don't think so. A lot of money in crypto, dare I say majority of the money in crypto, is for speculatory reasons. You know why the cryptocurrency markets reacts so negatively due to FUD? Exactly. Only a minority of the people in the bitcoin/crypto community actually holds bitcoin as a hedge for economic crises. My guess is that the markets would react negatively, at least for the next economic recession. We can only guess for now though. Time will tell.

Us lot think that but what we think is irrelevant. We're too far gone to be objective.

It's very easy to forget that there's an entire planet that doesn't think that way, and many who have dabbled with crypto, some with market moving sums, still think that way.

Everyone looks for a safe haven in times of economic instability.  Bitcoin was not available during the last economic recession but now I strongly believe that the impending recession could not be better timed.  Crytocurrencies will serve as the major hedge against the dollar. This will definitely affect the price of crypto positively.

There has been a lot of talk about next crisis ,  the national banks also knows that it could happen and their are monitoring the sitaution.
ECb recently cut the rates , that means that crisis will not be as soon as crypto enthusiasts want to. At the moment all eyes are on FED, will they do the same as ECB ?

I think Satoshi had created Bitcoin because of the financial problem and instability back then that is  why he created a peer to peer digital transaction that will surely take away some tax for a free transaction that you can surely say that it is fair, Well I guess Bitcoin will sure survive this financial Crisis at hand even though Bitcoin's price might have a slight downfall because of this, in my opinion, it will still surge in increasing just like the  way it does, And we already know the volatileness of Bitcoin so why a sudden fear.

I'm confident it'll shit the bed like everything else, perhaps even more intensely.

It's not a 'safe harbour'. It's a nutty bet to most people. You don't hang on to your nutty bet when you're having to sell your underpants to afford food.

If world finance blows up in 10 years I think there's a vastly better chance it may stand outside the turmoil but not if it happens in the next couple of years.

This will be a final test for BTC. So far, with failing economies of Venezuela and Argentina, the demand for BTC is rising. Both when speaking of BTC as a store of value (safe haven when stocks are crumbling) or a method of payment.

Anyway, if the new crisis will hit banks, we will see (as we had seen in Greece and Cyprus during the last one) daily withdrawal limit at a level so low, that trying to save your money by buying BTC may become impossible.

As well in case of some countries, you might be forced to pay "wallet tax", which is way easier to impose if there is KYC (something similar took place on bank accounts in Cyprus several years ago).

There is no point in guessing when the crisis will come then we will solve its problems, and now there is no point in talking about it, my opinion

I wonder what will happen to bitcoin and the crypto market if there will be a financial crisis in the world (2008 style)

From one side people will probably look for 'safer' place to put their money in
on the other side, many people see crypto and bitcoin as a risky investment

I would like to hear the community opinions about what might happen to our market in a time of world economic crisis