If the world economy crashed tomorrow, what would happen to Bitcoin's price?

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Quote from: jackg on April 23, 2016, 02:39:14 PM

Basically, if we had another economy crash like in 2008-2009, what would happen to the value of Bitcoin. Would it inflate or deflate?

I personally think that:
It could inflate due to it being used as a moe stable currency.
It could deflate due to it matching the rates of other currencies and it is still dependent on the FiAT value.

It depends on what happens to the banking system.

In most recessions the banks are completely unaffected - for example the recession of 1981, early 1990;s, the dot com recession.

What made the 2008 recession unusual is that the problem started in the banks. So it all depends on whether govts have done enough to ensure the banks are robust. If they have, another recession won't affect BTC. If the banks are in trouble and start seizing deposits, then there will be a rush into gold and BTC and BTC's value will rise.

gentlemand

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Well, we'd be properly up shit creek if all of that started to fall apart. Governments themselves but would be massively incentivised to keep it all going even if the companies were looking shaky.

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Quote from: gentlemand on April 23, 2016, 05:37:23 PM

Why would the internet itself go tits up? The infrastructure is already installed and ticking away happily.

There may be things such as DNS servers that will not function under the circumstances as there is nothing to run them on.
Along with Servers such as Google not functioning if energy is cut or if they run out of money.

gentlemand

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The OP's referring to a 2008/9 type thing. If it were truly a meltdown I don't think anyone anywhere's going to give much of a shit about Bitcoin unless they were a full mental.

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Quote from: r0ach on April 23, 2016, 05:38:27 PM

Lol, maybe in a zombie epidemic, not a great depression.

By World Economic Crash, I am presuming an end of the Petrodollar system.

Normal Society would not resume, as 'normal', treating the World Economic Crash as just another news event.

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Quote from: MatTheCat on April 23, 2016, 05:32:02 PM

Quote from: jackg on April 23, 2016, 02:39:14 PM

Basically, if we had another economy crash like in 2008-2009, what would happen to the value of Bitcoin. Would it inflate or deflate?

I personally think that:
It could inflate due to it being used as a moe stable currency.
It could deflate due to it matching the rates of other currencies and it is still dependent on the FiAT value.

Bitcoin would evaporate.

World economy crashed and the internet would become highly unreliable and unusuable.

Lol, maybe in a zombie epidemic, not a great depression.

gentlemand

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Why would the internet itself go tits up? The infrastructure is already installed and ticking away happily.

MatTheCat

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Quote from: jackg on April 23, 2016, 02:39:14 PM

Basically, if we had another economy crash like in 2008-2009, what would happen to the value of Bitcoin. Would it inflate or deflate?

I personally think that:
It could inflate due to it being used as a moe stable currency.
It could deflate due to it matching the rates of other currencies and it is still dependent on the FiAT value.

Bitcoin would evaporate.

World economy crashed and the internet would become highly unreliable and unusuable.

gentlemand

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I think we would see that the idea of Bitcoin as a safe haven is multiple decades too early. That's a time to avert risk. You'd have to be monumentally stupid not to still consider BTC an extreme risk. It would fly down the toilet like most other things.

The Sceptical Chymist

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Good question. I can't even remember what gold & silver did back in 2008, but I think bitcoin would just do its thing like normal. It's not exactly a safe asset and people wouldn't necessarily flee to it in the face of a crisis. It's gotten more stable in the past couple of years but it's still pretty volatile.

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i think the next crash scenario will include a bank run and afterwards a cash ban. So people will go for gold and btc. More people will get aware of btc.

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Quote from: jackg on April 23, 2016, 02:39:14 PM

Basically, if we had another economy crash like in 2008-2009, what would happen to the value of Bitcoin. Would it inflate or deflate?

I personally think that:
It could inflate due to it being used as a moe stable currency.
It could deflate due to it matching the rates of other currencies and it is still dependent on the FiAT value.

It will rise too, since no currency is stable. USD/EUR/YEN/ GBP all will fall so investors will turn their money towards are more stable asset.
Here is where bitcoin comes in, since it don't depend on the local economy but depends on the global economy, which is good.

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Right now bitcoin's value and market cap are calculated based on fiat money. The vast majority of the services that accept bitcoin do so because they're given the chance to convert bitcoins received to Fiat money based on the current market rate. So if you're talking about a total financial collapse, so severe that fiat money would lose its value, then I think that bitcoin's use cases would have to adapt. The world is clearly not ready to massively adopt bitcoin and bitcoin is also not ready for the world (single digit maximum transactions/second, hard to use, no instant payments etc.) If however the economy simply goes through recession which is the most likely scenario, bitcoin's price could see a bump as speculators often get a hold of serious events like that.

jackg

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Quote from: 1Referee on April 23, 2016, 03:18:47 PM

If the economy is really crashing people will either try to withdraw all their cash from ATM's or simply use it to purchase Gold or Bitcoin. I will just stick to purchasing Bitcoin instead of the other options.

Bitcoin does seem to be a good investment at the moment.

Gold and Silver's prices are decreasing whereas Platinum's is increasing still.

Gold is also being physically mined slower to keep the price up as there is said to be lost of it (this is an estimated theory of scientists and could in no way be factual).

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If the economy is really crashing people will either try to withdraw all their cash from ATM's or simply use it to purchase Gold or Bitcoin. I will just stick to purchasing Bitcoin instead of the other options.

jackg

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https://bit.ly/387FXHi lightning theory

Quote from: LFC_Bitcoin on April 23, 2016, 03:02:44 PM

I imagine it would rise ridiculously high. If Bitcoin was the only monetary source then it'd be amazing, well for us any way.

Yes, great for us, bad for others though.
For people that are unfamiliar with The Internet then it would be terrible.

LFC_Bitcoin

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I imagine it would rise ridiculously high. If Bitcoin was the only monetary source then it'd be amazing, well for us any way.

Meuh6879

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we will win ... even if fiat money crash or not.
people don't like loose money ...

But, what i'm saying Neo ... is that the people is not ready now.
They want loose and destroy the governement instead of burn fiat money.

jackg

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https://bit.ly/387FXHi lightning theory

Basically, if we had another economy crash like in 2008-2009, what would happen to the value of Bitcoin. Would it inflate or deflate?

I personally think that:
It could inflate due to it being used as a moe stable currency.
It could deflate due to it matching the rates of other currencies and it is still dependent on the FiAT value.

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