Yeah it's not a question of IF there will be another recession, it's a question of WHEN.
It looks like there wil be another transference of wealth.
The masses will be selling off their assets on the cheap to meet their expenses, their property or stocks for example, or their Bitcoin. People need to eat at the end of the day.
The smart money will then be buying up these assets for pennies on the dollar.
And the cycle begins again....
If you can stack up on valuable assets like BTC and weather the storm/manage your finances, then you can profit like all the other smart money investors.
That's what I'm doing.
Topic: How Will The Upcoming Recession Affect Bitcoin? - page 3. (Read 500 times)
It's quite the opposite. If Bitcoin is used as an exit door and, as you say, more and more people will start to use Bitcoin for their personal expenses, etc., then it's a good thing. This would increase the adoption of BTC, it is rather a positive effect (and not only on its value). If there is a bigger demand, the price is supposed to follow.
Recession = layoffs, furloughs, and all that. He's saying people that already use BTC would be pressured to sell off their holdings to cover basic expenses, and that prospective investors wouldn't have capital to invest.
Let's say the hyperinflation reduces the USD, who will win? Bitcoin and Gold. Take a look in Argentina and how BTC is used there.
Sure, a global crisis characterized by a collapsing USD would be paradigm changing, but that's a far cry from a typical recession. We could still be a very long ways off from USD hyperinflation, whereas a recession is pretty much guaranteed sometime in the next 1-10 years.
1) It's quite the opposite. If Bitcoin is used as an exit door and, as you say, more and more people will start to use Bitcoin for their personal expenses, etc., then it's a good thing. This would increase the adoption of BTC, it is rather a positive effect (and not only on its value). If there is a bigger demand, the price is supposed to follow.
2) The volatility will be the same, they know the risk. And the risk is the same. On the contrary, I think they will continue to hold until better signals are received.
3) Whales will continue to swing in the ocean and to eat shrimps.
Let's say the hyperinflation reduces the USD, who will win? Bitcoin and Gold. Take a look in Argentina and how BTC is used there.
2) The volatility will be the same, they know the risk. And the risk is the same. On the contrary, I think they will continue to hold until better signals are received.
3) Whales will continue to swing in the ocean and to eat shrimps.
Let's say the hyperinflation reduces the USD, who will win? Bitcoin and Gold. Take a look in Argentina and how BTC is used there.
The recession that everyone knows is outside the Bitcoin world. It happens within the old financial system. I don't think there is a direct effect of fiat-based recession to the crypto market. The reduction of spending, which is what recession really means, does not cover Bitcoin. Less than 1% of the world's population is using Bitcoin for purchases. If the recession will affect Bitcoin, that would only be limited to less buying orders on exchanges.
Generally, all assets/commodities will decrease in value when a recession happens. However, there are "inferior goods," i.e., lower quality goods that will perform better if consumers income declines.
IMO, Bitcoin is "normal goods." It will perform better when consumers income increases.
https://www.economicshelp.org/concepts/inferior-good/
IMO, Bitcoin is "normal goods." It will perform better when consumers income increases.
https://www.economicshelp.org/concepts/inferior-good/
Yeah, there are some assets like Gold though that do well within a recession.
Generally, all assets/commodities will decrease in value when a recession happens. However, there are "inferior goods," i.e., lower quality goods that will perform better if consumers income declines.
IMO, Bitcoin is "normal goods." It will perform better when consumers income increases.
https://www.economicshelp.org/concepts/inferior-good/
IMO, Bitcoin is "normal goods." It will perform better when consumers income increases.
https://www.economicshelp.org/concepts/inferior-good/
I think it's important to consider what impact the recession that's upcoming will have on Bitcoin.
Bitcoin has never been through a recession, and so we don't know how owners of and investors in Bitcoin will react.
If there is a major global recession then the entire market will bleed and nothing will escape that, people will panic when the entire market starts falling and you will see major sell off but i do not expect the BTCitcoin to have the same issue with the rest of the market but still if there is a major global issue no market is safe from it, there is economic slow down globally and i do not wish to go through another recession again. Bitcoin has never been through a recession, and so we don't know how owners of and investors in Bitcoin will react.
Bitcoin has never been through a recession, and so we don't know how owners of and investors in Bitcoin will react.
this is what has led bitcoiners to very binary thinking. one side believes a run for the exits in stocks = excess money flowing into bitcoin. the other side believes bitcoin will get dumped just like all other "risky" assets. i tend to fall into the second camp.
institutional investors will enter "risk off" mode and exit any long positions in crypto. retail investors will lose jobs/bonuses, depleting disposal investment income and forcing them to sell their bitcoin stashes.
1. Retail investors by and large, will need to sell/spend their Bitcoin to pay their expenses and suppor themselves through the recession. So this could cause a dip in the price and a lessening in demand throughout the period.
2. Institutional investors may well choose to sell Bitcoin during the recession, in order to move funds into less volatile assets such as Gold.
3. Wales will likely hold their Bitcoin, and even pick up additional Bitcoin during any dips in the price, believing that Bitcoin will outlast the recession and will be far more valuable within the next 5, 10, and 15 years.
4. There won't be any parabolic rises seen in Bitcoin as a result of FOMO after the halving. This requires retail investors who have excess cash, or access to cheap credit, both of which are lacking during recessions.
2. Institutional investors may well choose to sell Bitcoin during the recession, in order to move funds into less volatile assets such as Gold.
3. Wales will likely hold their Bitcoin, and even pick up additional Bitcoin during any dips in the price, believing that Bitcoin will outlast the recession and will be far more valuable within the next 5, 10, and 15 years.
4. There won't be any parabolic rises seen in Bitcoin as a result of FOMO after the halving. This requires retail investors who have excess cash, or access to cheap credit, both of which are lacking during recessions.
i agree with points #1-3, although i think investors would move to cash more so than gold.
#4 depends on the timing of the recession. the downturn may not appear in earnest until after the next bitcoin bubble, maybe in 2021+. too many people are expecting a top in the stock market right now. this bull market could easily extend another year or more.
I think it's important to consider what impact the recession that's upcoming will have on Bitcoin.
Bitcoin has never been through a recession, and so we don't know how owners of and investors in Bitcoin will react.
My thinking is as follows:
1. Retail investors by and large, will need to sell/spend their Bitcoin to pay their expenses and suppor themselves through the recession. So this could cause a dip in the price and a lessening in demand throughout the period.
2. Institutional investors may well choose to sell Bitcoin during the recession, in order to move funds into less volatile assets such as Gold.
3. Wales will likely hold their Bitcoin, and even pick up additional Bitcoin during any dips in the price, believing that Bitcoin will outlast the recession and will be far more valuable within the next 5, 10, and 15 years.
4. There won't be any parabolic rises seen in Bitcoin as a result of FOMO after the halving. This requires retail investors who have excess cash, or access to cheap credit, both of which are lacking during recessions.
My assumptions are based on research I've carried out and summarised in the below video:
https://youtu.be/faAjgUZJu0k
How do you think the recession will affect Bitcoin?
Bitcoin has never been through a recession, and so we don't know how owners of and investors in Bitcoin will react.
My thinking is as follows:
1. Retail investors by and large, will need to sell/spend their Bitcoin to pay their expenses and suppor themselves through the recession. So this could cause a dip in the price and a lessening in demand throughout the period.
2. Institutional investors may well choose to sell Bitcoin during the recession, in order to move funds into less volatile assets such as Gold.
3. Wales will likely hold their Bitcoin, and even pick up additional Bitcoin during any dips in the price, believing that Bitcoin will outlast the recession and will be far more valuable within the next 5, 10, and 15 years.
4. There won't be any parabolic rises seen in Bitcoin as a result of FOMO after the halving. This requires retail investors who have excess cash, or access to cheap credit, both of which are lacking during recessions.
My assumptions are based on research I've carried out and summarised in the below video:
https://youtu.be/faAjgUZJu0k
How do you think the recession will affect Bitcoin?
Jump to: