Is Bitcoin going to be the best hedge in the upcoming financial crisis? - page 3.

truehedge

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Quote from: talkbitcoin on December 15, 2018, 04:45:34 AM

i don't think there is any ultimate hedge in case of a global financial crisis. and bitcoin is not yet ready for that kind of adoption although it has a lot of potential to be one. so i'd say bitcoin would be a pretty good choice but it can't solve all the problems.

Quote from: truehedge on December 15, 2018, 04:06:10 AM

Bitcoin (core) as it's the oldest, largest crypto

"bitcoin core" is the name of a full node/wallet not the coin itself. the coin is simply called "bitcoin".

bitcoin core - ok fair point I put in the brackets the ticker instead (BTC), my point is that it's not confused with any of the forks.

Regarding the crisis - I don't mean crisis where the electricity stops working and those who have canned food, guns & ammo are the ultimate winners. I meant something at the 1930s or 2008 level.

Therefore I don't expect that all the banks and all the cash will be distrusted and the only way to go forward would be crypto money - this might happen at some point but probably will take one or two more crises.

truehedge

newbie

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Quote from: VB1001 on December 15, 2018, 04:13:40 AM

This video can give you an idea.

Escaping the Global Banking Cartel - Andreas Antonopoulos

https://www.youtube.com/watch?v=LgI0liAee4s&t=1s

I have already watched this and if Andreas is rights the answer would be "yes" but I asked for your opinion - fellow users of Bitcointalk.

clrpod

full member

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I think that bitcoin will suffer as much as fiat or more in a financial crisis. It's not proven itself to be a store of value and is still highly speculative in nature. Therefore people won't look to move from stocks (risky) to bitcoin (way riskier) if they're facing a financial squeeze.

Tytanowy Janusz

legendary

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Merit: 1622

During crysis investors switch from high risk/ volatility assets (stocks) to low risk/volatility assets (gold, materials) to simply decise loss. Even if gold will decline too it will for sure decline less then stock. How about bitcoin? Well its high volatile and very high risk asset. So im my opinion it will be first to be dumped (and it happend in december 2017). In my opinion bitcoin was first asset dumped in incoming crysis. Next was small stocks from emerging market and S&P now.

In crysis time we could see bitcoin beeing dumped even harder (simply people will need money to live for not to invest in high risk assets). Even some life-time hodler will have to sell BTC to buy bread. But knowing the fact that average fiat currency lives 27 years, then we see hyperinflaction and devaluation. If, during cryusis, some fiat currencies will be under hyperinflation citizens of that country may run to bitcoin what will push price up making bitcoin first asset beeing pumped after crysis (or even during).

I diversify my porfolio. I still hold bitcoin (life-time hodl

) but i also have short positions on some stocks.

talkbitcoin

legendary

Activity: 1372

Merit: 1032

All I know is that I know nothing.

i don't think there is any ultimate hedge in case of a global financial crisis. and bitcoin is not yet ready for that kind of adoption although it has a lot of potential to be one. so i'd say bitcoin would be a pretty good choice but it can't solve all the problems.

Quote from: truehedge on December 15, 2018, 04:06:10 AM

Bitcoin (core) as it's the oldest, largest crypto

"bitcoin core" is the name of a full node/wallet not the coin itself. the coin is simply called "bitcoin".

VB1001

legendary

Activity: 938

Merit: 2540

<>

This video can give you an idea.

Escaping the Global Banking Cartel - Andreas Antonopoulos

https://www.youtube.com/watch?v=LgI0liAee4s&t=1s

truehedge

newbie

Activity: 14

Merit: 4

Hi Everyone,

There has been something on my mind for last couple of weeks and that is:

Is Bitcoin going to be the best hedge in the upcoming financial crisis?

Let's assume for a while that the financial crisis will break wide open in either late 2019 or at latest early 2020 - we live in everything bubble era.

What do you believe will be the ultimate hedge and why do you think that?

In 2008 crisis it was US treasuries and gold as it rose sharply in 2009, 2010 up to 2011 I don't think that would be the case this time as the mobility matters more and more.
I can't speak for US treasuries as I don't understand them that much let alone understand why would anyone invest in anything that does not even cover (real) inflation which in my opinion is about 7 - 10 % per year depending on where you live and things you buy.

In my opinion it will be Bitcoin (BTC) as it's the oldest, largest crypto with the largest hashing power behind it.

I would appreciate your comments and opinions.

Edit 17/12/2018: As some people thought I'm looking for an instrument that will not take ANY loss - that's not the case here - I'm looking at an instrument that will not stay down for say longer than 3 months.

Edit 19/12/2018: This assumption/planning/thought is for rich people - people who can barely afford food and just got laid off will not invest in anything (maybe lottery tickets if they want to call it investing).

Topic: Is Bitcoin going to be the best hedge in the upcoming financial crisis? - page 3. (Read 715 times)