Topic: How would Bitcoin react to a global financial crisis? - page 5. (Read 540 times)

Bitcoin is much safer and much profitable than banks,because in the banks only them will earn high profit and banks increase if you save money to them is very low,much better if you want a long term keep your profit in bitcoin you will earned high profit with it because bitcoin price continue it's increase day by day.

And global financial crisis can affect bitcoin temporaly because many bitcoiners exchanging there bitcoins into fiat currency because of there financial needs that's why bitcoin price will dump but it will recover same like before.

I think the price will not be affected by the financial crisis, its price will continue to rise because bitcoin may be like their gold is not affected by inflation or crisis effects. maybe the price will go down but only temporarily, then up again just as before.

I think bitcoin is the internet based currency and i would like to invest in this currency this is true that in some ways it will react to the good tool to react to the global financial crises. The economist have started discussing this issue and i have heard that bitcoin is the digital and fast currency so through this the financial crises can be broken like the crises of the 2007/08 the financial crises comes to the reason of the not availability of the money.

Awesome, thanks for sharing. I like your thinking.

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Venezuela could provide a real world example of how bitcoin would fare during a financial crisis. The venezuelan native currency (the bolivar) is currently hyperinflating. The entire nation is bordering on economic collapse, despite being rich in oil. Still venezuelans mine bitcoins and find ways to buy/sell using crypto currencies, some are doing well with their crypto mining enterprises, earning a decent living for themselves under circumstances where they otherwise might not be able to.

That's probably the best case example I can think of, although there could easily be africans, cubans and others currently not living under the best economic or living standards for whom bitcoin is something of a savior.

Note one thing first that there has been no financial crisis till last 10 years and i can't see any chances of financial crisis to happen soon by this year ends. But yes came to know that according to  WD GANN  Financial crisis time table either 2018 or 2019 is the year of financial crisis and we may expect the financial crisis at that time. Now coming to the main point if crisis occurs then bitcoin will be crashed forever and then there won't be much interest among the people about this bitcoin and no one will be interested either trading it or mining it where the value of bitcoin comes from. I wish that we should not see bitcoin crisis for another 20 years.

i agree, bitcoin would go down in value with a global crisis/crash.
In my own cash hypotically speaking i would have to liquidate my crypto if things got really bad financially.
I would class myself as a below average earner so i assume others like me would have to do the same.

Bitcoin first came into existence when there was a global crises during 2008 and that is when the first white paper came out regarding a decentralized currency without any manipulation and since it was a revolutionary new system more people started getting interested in it and now since it is a main stream currency and almost everyone who follows the news have heard about bitcoin ,a financial crises will attract new investors and sure the price will rise.

Prices are currently stable now and I believe it'll get higher again but I wouldn't bet all on bitcoins. Only reason I keep some is because I found it more affordable and easy to acquire but given the chance I would invest in metals as well. Gold and silver as investments has been around for a long time and though they may be highly regulated and not grow as much, I still think they are much safer stores of value.

As you said bitcoin bring new surprises with every year so we can expect this to happen in this year too.Yes the if there is a financial crisis it will affect the bitcoin price too because people will sell their bitcoins to make money so the supply will increase and demand will decreased.But gold is different from cryotocurrency so gold can withstand even there is financial crisis but bitcoin maybe not able to withstand the price will fall.

I am not really sure but I think may be global financial crisis will give affect to bitcoin, but I do not know how big the impact.. in that condition people will be very careful when choosing an investment and some people will sell their asset, one of them is sell their bitcoin to solved their financial problem.

First, those prognosticators making those statements do so every year, and the more outlandish the claim of catastrophe, the more eyeballs and clicks they get because fear sells attention, and attention generates revenue. So doom and gloom should be taken with a grain of salt. It's much more noteworthy when economists issue warnings because it's supported by research and not designed to sell attention or generate revenue, but to inspire policy.

Second, Bitcoin has very little utility, so it's value comes from speculation, or the mass perception that someone in the future will value the coins more than you did when you purchased them and you will therefore be able to sell them at a profit. Because the value is made up primarily of speculators, the wealth poured into sustaining the price comes from people who feel financially secure and able to risk losing the investment. Essentially, the confidence created by the current robust economy creates the confidence for people to speculate. In an economic downturn, confidence will disappear and people will not tolerate such risky asset holdings any longer, so all assets supported by speculators and risk-takers will suffer greatly. The riskier the asset, the more it will decline in price. As the king of speculative assets, I expect in an economic downturn that crypto will suffer outsized losses to things with inherent value, like stock equities and assets that generate income like real estate or REITs.

In short, everything will go down in value, but crypto will fall harder.

If there will be even a small crisis in financial sector, we will see a very big growth IMO because investors will move their money to crypto. It's perfect tool for them!

if it was a year+ ago i would have said not much effect apart from a little rise because of it.
but we are talking about 2018 a year after a lot of adoption mainstream and otherwise has actually happened. we now have NASDAQ talking about adding bitcoin market!

people are considering bitcoin as an investment option and it is a lot more convenient than things like gold. you hold bitcoin yourself without anyone even knowing. it  doesn't need storage "space" like gold and a lot of more benefits. if a global financial crisis happens, bitcoin will shoot up to the moon in a very short time. i believe $1 million is even possible.

Other experts say that last year's rise in the price of Bitcoin was not caused by investors interest, but by the drop in the price of the dollar. If the economic crisis in 2018 will be even bigger, it means that the price of Bitcoin this year will increase even more than in the last year.
Only HODL guys!  

It would become the value to store all your money so it would explode as everyone would feel safer in bitcoins than in banks

It's really hard to say. On one hand, since Bitcoin isn't really tied to any economy, it's more likely to retain its value than fiat. On the other, I would think that people would want their assets to be liquid in times of crisis, and Bitcoin is anything but at the moment.

What we know for sure is that it can actually thrive in local economic crises, as evidenced by countries like Venezuela. The global stage is completely different though, and my personal opinion is that it's going to go down like everything else, but is likely to fare better than traditional currencies.

Some very interesting points here. I would have to agree that it would crash BUT it might just depend on two important factors, 1- how mainstream bitcoin has become. So if there is some serious real-world use there, then people might turn to bitcoin during the crisis. #2 - The cause of the crisis. If it's got anything to do with the banks for example, the world might finally come to its senses and turn to a decentralised economy. But who knows.

I guess it would depend on the nature of the crisis and people's behavior during the crisis. I'm not sure if many would run to an intangible asset once a crisis occurs. If people choose to panic sell and dump all their coins, then the value would drop or possibly crash. Gold may have been able to withstand a crisis however bitcoin may not be that resilient despite that its decentralized. Unlike with fiat, it does not have the same kind of use for people yet so it's hard to tell how it will fair in a crisis. The thing is, it's going to be affected for sure in any part of the world that it is in.

Bitcoins would be the one safe Haven that no one can control or touch. Gold is usually where people run, but if you aren't physically holding it you don't really own it, you just own an IOU of gold, which honestly is exactly what's wrong with fiat. No one needs to owe anyone anything. Debt is completely made up by governments and banks and is just not a need. It's hard to think that way but it's the truth.