Is Bitcoin Ready for the Next Global Financial Crisis?

betswift

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Quote from: icalical on January 09, 2025, 07:42:29 AM

Quote from: BitJannik on January 06, 2025, 02:33:47 AM

As we continue to witness economic uncertainty across the globe, many are looking to bitcoin as a potential hedge against a financial collapse. Is bitcoin truly ready to serve as a safe haven during a global financial crisis or will it face challenges that prevent it from becoming the go to asset in times of crisis? How do you think bitcoin's market behavior will change in response to economic turmoil and can it withstand the pressures of a global recession?

I am a Bitcoin supporter but also a Bitcoin investor so I need to be realistic. In the COVID-19 crash, Bitcoin fell with stocks, proving that it is not always a protector of recession. But then in 2020, Bitcoin surged over $60k, showing it can prosper in some scenarios. Given the high volatility of Bitcoin and its tracking of riskier assets, it is an unreliable hedge that cannot be relied upon to perform consistently. So, though Bitcoin at times appears to do well in chaos, I wouldn't consider it as safe haven. It is highly unpredictable and doesn't necessarily behave as those assets deemed traditional safe havens like gold, especially during global financial uncertainty.

The volatility of BTC is both its curse and its blessing.
We know for a fact that it will bounce back, but when exactly this chain of events would happen - we can only look at cycles and the smaller picture in place.

icalical

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Quote from: BitJannik on January 06, 2025, 02:33:47 AM

As we continue to witness economic uncertainty across the globe, many are looking to bitcoin as a potential hedge against a financial collapse. Is bitcoin truly ready to serve as a safe haven during a global financial crisis or will it face challenges that prevent it from becoming the go to asset in times of crisis? How do you think bitcoin's market behavior will change in response to economic turmoil and can it withstand the pressures of a global recession?

I am a Bitcoin supporter but also a Bitcoin investor so I need to be realistic. In the COVID-19 crash, Bitcoin fell with stocks, proving that it is not always a protector of recession. But then in 2020, Bitcoin surged over $60k, showing it can prosper in some scenarios. Given the high volatility of Bitcoin and its tracking of riskier assets, it is an unreliable hedge that cannot be relied upon to perform consistently. So, though Bitcoin at times appears to do well in chaos, I wouldn't consider it as safe haven. It is highly unpredictable and doesn't necessarily behave as those assets deemed traditional safe havens like gold, especially during global financial uncertainty.

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Quote from: michellee on January 07, 2025, 08:09:30 AM

I just thinking that Bitcoin is already a safe haven in the Covid-19 because when people difficult to earn money from their job, those who already use crypto trading especially Bitcoin trading still earn money. That makes them survive from the pandemic because they can still buy their daily needs.

So I think Bitcoin can be our help in the future when the crisis happens. Bitcoin can pass over countries boundaries so any people from all countries can use Bitcoin as their currency to buy products. But that will depends on the government because we still need acceptance from them.

This will depend on each crisis because during covid the government pumped a huge amount of money into the economy to save the economy and bitcoin also benefited from that move. But after the covid pandemic and the Russia-Ukraine war, inflation skyrocketed and the Federal Reserve tightened monetary policy, no money was pumped in. Bitcoin was dumped and dropped to $15,000 at the time inflation peaked, and the only asset that was still rising in price at that time was gold. So I am very skeptical to say that bitcoin is a safe haven for us if another crisis happens at this point.

By the way, a safe haven is a stable asset, an asset that is too volatile and its price changes according to the news cannot be considered a safe haven because in times of crisis, most of it is bad news.

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Quote from: BitJannik on January 06, 2025, 02:33:47 AM

As we continue to witness economic uncertainty across the globe, many are looking to bitcoin as a potential hedge against a financial collapse. Is bitcoin truly ready to serve as a safe haven during a global financial crisis or will it face challenges that prevent it from becoming the go to asset in times of crisis? How do you think bitcoin's market behavior will change in response to economic turmoil and can it withstand the pressures of a global recession?

Very much; we are going to see the financial crisis without a doubt and that will be very common so that is not even a question at all. However, that has to be the most common thing because we keep seeing crisis over crisis all the time, and I bet that bitcoin will be great without a doubt because we have seen how great it can be each time. It was great on Covid as well, that's the most important part so we can't really consider this to be a huge deal and we can make it work.

However, the deal is we need to look at this as a great way of making a profitable thing in the end, so what we can do right now is just hope that we can come to some great amount of money in order to end up investing into bitcoin so that we could make a profitable investment at all.

Dr.Bitcoin_Strange

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First, I will say, yes, Bitcoin will be a safe heaven just like it has already become a safe heaven for so many people even before now. For example, if there's any economic or financial crises as you suggested and perhaps more numbers of people decided to hold unto Bitcoin by converting most of their investment into Bitcoin, if majority of people are doing so and in turn it make demand of Bitcoin to drive up, what do you think will happen to its price? The more the demand, the more price surge you will see by then.

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Quote from: dothebeats on January 07, 2025, 01:44:10 PM

The pandemic itself served as a reminder that in the midst of uncertainty on a lot of things, bitcoin remains strong and will continue to be your best bet for hedging against dark times. Idk what else is there to prove for bitcoin at this point, and I'm fairly certain that even the non-believers are starting to also convert some of their assets into the said cryptocurrency.

As for me, I will continue investing whatever extra funds I have in bitcoin at this point. I made the right call continuing to buy the dip when it was in $50k-$60k levels, and I'm in for the long run. Even if it slides back down to $70-$80k levels due to external factors (financial crisis, etc.), there is no selling that will happen and it will remain as is for the time being.

Indeed! The pandemic period proved a lot of things in the digital world. Just consider the fact that a lot of financial transactions have happened owed to this crisis. And some activities have found their way online where originally, the traditional way were done on physical manner. However, pandemic have shown the capability of btc and crypto in general. And that this era proved a turning point for a lot of things.
When it comes to investments, it depends on your financial capability. We can't tell others to invest right now because the future is looking bright. It will still depend on their funds as well as their belief on this market.

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Quote from: BitJannik on January 06, 2025, 02:33:47 AM

As we continue to witness economic uncertainty across the globe, many are looking to bitcoin as a potential hedge against a financial collapse. Is bitcoin truly ready to serve as a safe haven during a global financial crisis or will it face challenges that prevent it from becoming the go to asset in times of crisis? How do you think bitcoin's market behavior will change in response to economic turmoil and can it withstand the pressures of a global recession?

I will give you an example.

We've got pandemic, we've got wars, economic sanctions that have been placed to those countries that went against the USA.

Now, what Russia is doing is they're capitalizing the potential of BTC and despite with financial sanctions, what they do with the transfers? BTC.
--> https://www.reuters.com/markets/currencies/russia-is-using-bitcoin-foreign-trade-finance-minister-says-2024-12-25/

That's a prove that despite them in a financial crisis due to the sanction, they're benefiting from it.

And the rest, you get the idea how BTC is a good safe haven despite its volatility.

Oluwa-btc

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Quote from: AprilioMP on January 06, 2025, 06:09:27 AM

Quote from: BitJannik on January 06, 2025, 02:33:47 AM

As we continue to witness economic uncertainty across the globe, many are looking to bitcoin as a potential hedge against a financial collapse. Is bitcoin truly ready to serve as a safe haven during a global financial crisis or will it face challenges that prevent it from becoming the go to asset in times of crisis? How do you think bitcoin's market behavior will change in response to economic turmoil and can it withstand the pressures of a global recession?

My answer is yes. Bitcoin is still BTC and will never be anything else, meaning Bitcoin has weathered a difficult phase in the world economy.
After that phase occurred and the world economy entered a new phase until now, people slowly began to realize the function of the importance of having Bitcoin and they continuously tried to increase the volume of Bitcoin in their wallets as savings.

This shows that the minds of intelligent people are already being put into practice, even some public figures have suggested that a large country needs to ditch other asset reserves and switch to Bitcoin.

Bitcoin has always been a financial hedge to financial crisis and recession since her existence.The point is anyone that doesn't wish to experience the next financial crisis should adopt Bitcoin and take this message seriously.It can maintain the game and economical pressures of the season.Hopefully when certain finance and economical services ruptures,Bitcoin will cover for the losses and mess.

dothebeats

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The pandemic itself served as a reminder that in the midst of uncertainty on a lot of things, bitcoin remains strong and will continue to be your best bet for hedging against dark times. Idk what else is there to prove for bitcoin at this point, and I'm fairly certain that even the non-believers are starting to also convert some of their assets into the said cryptocurrency.

As for me, I will continue investing whatever extra funds I have in bitcoin at this point. I made the right call continuing to buy the dip when it was in $50k-$60k levels, and I'm in for the long run. Even if it slides back down to $70-$80k levels due to external factors (financial crisis, etc.), there is no selling that will happen and it will remain as is for the time being.

lixer

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Quote from: mindrust on January 06, 2025, 08:33:11 AM

Who cares?

Listen to Peter Lynch instead of worrying about the future incidents which you have no control over.

The markets crash every once in a while and yet the humanity survived them all and assets kept going up. Even the biggest of all crashes like the 87 crash, the dotcom crash, 2020 covid crash, couldn’t stop the markets. Next time there will be another crash which will be bigger than the last one probably and again many people will freak out and sell the dip.

Just keep DCA’ing.

We are talking about a crisis here and as we know that its effects can be severe that it can be hard for us to recover from it, though I think that is if we don't prepare well and don't do the right actions during it. Maybe you already know them and that is why you are showing a confidence there.

Humanity can mean the majority and this still means that some or a few unfortunately have not survived it. They may be lacking in resources and die in hunger or sickness, or they got devasted by a major loss and just decide to end their life as they think it is much better but of course that is the worse decision ever made by a human. Money might still return later on though.

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I just thinking that Bitcoin is already a safe haven in the Covid-19 because when people difficult to earn money from their job, those who already use crypto trading especially Bitcoin trading still earn money. That makes them survive from the pandemic because they can still buy their daily needs.

So I think Bitcoin can be our help in the future when the crisis happens. Bitcoin can pass over countries boundaries so any people from all countries can use Bitcoin as their currency to buy products. But that will depends on the government because we still need acceptance from them.

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Quote from: BitJannik on January 06, 2025, 02:33:47 AM

As we continue to witness economic uncertainty across the globe, many are looking to bitcoin as a potential hedge against a financial collapse. Is bitcoin truly ready to serve as a safe haven during a global financial crisis or will it face challenges that prevent it from becoming the go to asset in times of crisis? How do you think bitcoin's market behavior will change in response to economic turmoil and can it withstand the pressures of a global recession?

Bitcoin has long term growth potential, so if you can invest for the long term, bitcoin can give you significant returns that protect you against currency devaluation and inflation. But if you expect bitcoin to be usable like gold and effective even in the short term to solve sudden economic crises like during the covid pandemic or the war between Russia and Ukraine. I don't think bitcoin can help you in that case. Bitcoin was dumped when covid hit us and dumped again when world economic inflation peaked due to war. Obviously, the world still sees bitcoin as a speculative asset rather than a stable asset like gold, so it is inevitable that it will be dumped whenever economic instability occurs.

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Such discussions usually end in general discussions and I think we have moved beyond the stage of the economy being black and white or having one solution to all financial problems. On an individual level, Bitcoin will help you reduce the financial risks associated with your economy.

betswift

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Quote from: davis196 on January 07, 2025, 02:39:34 AM

Quote from: BitJannik on January 06, 2025, 02:33:47 AM

As we continue to witness economic uncertainty across the globe, many are looking to bitcoin as a potential hedge against a financial collapse. Is bitcoin truly ready to serve as a safe haven during a global financial crisis or will it face challenges that prevent it from becoming the go to asset in times of crisis? How do you think bitcoin's market behavior will change in response to economic turmoil and can it withstand the pressures of a global recession?

The next big global recession/depression is yet to come. I'm sure that the BTC price would face a major short term drop, just like the price of every other financial asset, but it will recover in the long run. The possibility of a global recession/depression is really small, because the big central banks have learned their historical lessons and they would just pump the economy out of a recession with money printing and quantitative easing. Bitcoin is a hedge against inflation, but I doubt that Bitcoin can be an effective hedge against a recession.

Bitcoin is no tool for that in the first place, so that's fine. It is still affected by the world and what the markets overall fell - remember how it felt the COVID, for example.
But I agree - in the long run, it would definitely recover.

davis196

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Quote from: BitJannik on January 06, 2025, 02:33:47 AM

As we continue to witness economic uncertainty across the globe, many are looking to bitcoin as a potential hedge against a financial collapse. Is bitcoin truly ready to serve as a safe haven during a global financial crisis or will it face challenges that prevent it from becoming the go to asset in times of crisis? How do you think bitcoin's market behavior will change in response to economic turmoil and can it withstand the pressures of a global recession?

The next big global recession/depression is yet to come. I'm sure that the BTC price would face a major short term drop, just like the price of every other financial asset, but it will recover in the long run. The possibility of a global recession/depression is really small, because the big central banks have learned their historical lessons and they would just pump the economy out of a recession with money printing and quantitative easing. Bitcoin is a hedge against inflation, but I doubt that Bitcoin can be an effective hedge against a recession.

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Quote from: Mr. Magkaisa on January 06, 2025, 11:02:32 AM

- I think according to what I know, even if a country is in crisis, bitcoin is not affected, this is the beautiful thing when you have bitcoin to save,
because the brighter side of bitcoin is really proven and tested.

Remember, there are many business people around the world who invest to save bitcoin, so if these people are saving, that means they saw something good in bitcoin,
that's where you should think, right? Aren't you surprised by that?

Usually what hits Bitcoin is overall instability in the world. And the markets in general too.
Everybody is doing their own thing once the markets are down and there is a sentiment in the old circles, and the crypto market reacts accordingly too.

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Quote from: BitJannik on January 06, 2025, 02:33:47 AM

As we continue to witness economic uncertainty across the globe, many are looking to bitcoin as a potential hedge against a financial collapse. Is bitcoin truly ready to serve as a safe haven during a global financial crisis or will it face challenges that prevent it from becoming the go to asset in times of crisis? How do you think bitcoin's market behavior will change in response to economic turmoil and can it withstand the pressures of a global recession?

i believe bitcoin has the potential to bee safe option during a financial crisis bcoz it's decentralized and limited in supply. For ie, during the covid 19 pandemic in 2020, many people turned to bitcoin as a safer investment when traditional markets were unstable. Although its price can be unpredictable, more companies and institutions are starting to trust it, whic shows it's gaining more credibility. as more people use bitcoin, it could become more stable option for protecting wealth during tough times.

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First of all, nothing is guaranteed or offers a 100% certainty and Bitcoin isn’t an exception but what we need to understand is that Bitcoin has shown some outstanding level of resilience during previous economic crises, ones that we couldn’t have even predicted that it’ll recover from.
Example is the the Covid 19 pandemic, many thought that’d be the end of Bitcoin but it showed amazing strength and recovery and here we are today. Regardless of any global economic crisis that may potentially rise up, i believe that Bitcoin’s decentralized nature as well as its limited supply would make it a safe haven for investors and others to fall back on at any given time. So yes I believe Bitcoin’s got all it takes to survive any global economical storm or crisis that may arise in the future.

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Quote from: BitJannik on January 06, 2025, 02:33:47 AM

As we continue to witness economic uncertainty across the globe, many are looking to bitcoin as a potential hedge against a financial collapse. Is bitcoin truly ready to serve as a safe haven during a global financial crisis or will it face challenges that prevent it from becoming the go to asset in times of crisis? How do you think bitcoin's market behavior will change in response to economic turmoil and can it withstand the pressures of a global recession?

It has happened before and bitcoin makes a much better hedge than any other investment.
Bitcoin is almost perfect with no flaws in terms of development concept and similar to gold it may have enough resilience in economic crises.
There are many events that bitcoin may have gone through and that have led to its growth, there is no doubt that the crisis issue has never affected the journey of bitcoin in its entirety going forward.
Withstanding the pressures of a recession may be much easier than the resistance from some countries in the past who have viewed bitcoin as a method of destroying fiat currencies.

So there is no need to worry about a recession because bitcoin has weathered far worse events than that before and it now looks like one of the best investments in its hedge.

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Quote from: BitJannik on January 06, 2025, 02:33:47 AM

As we continue to witness economic uncertainty across the globe, many are looking to bitcoin as a potential hedge against a financial collapse. Is bitcoin truly ready to serve as a safe haven during a global financial crisis or will it face challenges that prevent it from becoming the go to asset in times of crisis? How do you think bitcoin's market behavior will change in response to economic turmoil and can it withstand the pressures of a global recession?

If the global economy collapses today, bitcoin won't be exempt. Let's embrace reality: if wars between two nations can affect the price of bitcoin, what more do you think an economic collapse will do?

1 Bitcoin will still be equal to 1 Bitcoin, but the price will be affected not just slightly but greater, or in a worst-case scenario, if the economy collapses and it leads to all local currency devaluation, and we see the price of Bitcoin on the rise, what point and difference will it make? If $10,000 will end up having the same purchasing power as $100 before the crisis.

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