Is Bitcoin Ready for the Next Global Financial Crisis? - page 2.

Faisal2202

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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?

Any economic turmoil will directly impact the price and adoption of BTC, so for the streamlined adoption of it, and for the governments to make it happen, they have to do things under the table until they achieve what they want to achieve, and IMO stability is not on their list for all the time.

So if next global financial crisis occurs, like 2008, BTC might not be affected by it, because what happened in 2008 was the end of a supercycle of a commodity market, and from that point to till the supercycle is due to the modernization and digitalization and now the world has moved toward automation. The point is, next financial crisis is not expected at the moment, but if it happens, BTC might drop in value but people are smart and they have investment in BTC to avoid their big loss.

DediRock

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Bitcoin has potential as a hedge during crises due to its decentralized nature, but its volatility and reliance on market sentiment remain challenges. While it may attract investors in economic turmoil, it's not yet a fully reliable safe haven like gold. Its behavior will likely depend on how trust in traditional systems evolves.

markleal

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BTC should be the hero during financial crisis. BTC is design to be resistant to the flow of fiat or any other currency. However the stock market is keep pulling the the BTC in their system. They are promissing a secure, cheapest way to join in the bitcoin economy, which then drag BTC price in that system. As result the BTC price will be correlated to the stock market performance, then the BTC will be dragged together with the collapse of the market.

Swordsoffreedom

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In all fairness, only time will tell, but with what's going on and what bitcoin has achieved so far. If a global financial crisis suddenly occurs, I almost believe that a bitcoin dump is inevitable.

Even though we are bitcoin investors and Bitcoin is becoming more and more popular, but we need to be realistic that it has not yet reached a stage where people consider it a reliable asset like gold. Bitcoin is still in the early stages of mass adoption and is far from achieving its goal of becoming a safe haven. There are still a lot of people who don't even know about bitcoin, or have heard of it but don't care, how can they choose an asset they don't know about?

Not to mention, an asset that increases in price largely depends on news and can also be dumped by fake news, how can it be considered a safe haven during times of crisis?

Mr. Magkaisa

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- 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?

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Quote from: memehunter on January 06, 2025, 03:59:39 AM

I agree with @Churchillvv and want to add that any crisis (economic/social/political) will only boost the credibility of Bitcoin. Bitcoin knows no boundaries Grin

I have to disagree, there were few crisis happened since Bitcoin exist.

Coronavirus, Bitcoin price down to $3K.
Russia invaded Ukraine and Israel attacking Palestine, Bitcoin price tend to drop, on the other hands gold price rose really high.

I haven't seen any single crisis that makes Bitcoin price rise, instead it's always about good news or no news at all.

Quote from: Churchillvv on January 06, 2025, 03:39:31 AM

And of course I will give you a better example of how bitcoin can serve better in every situation. during the hit period of Russian and Ukrainian war, someone wanted to leave Ukraine but has landed property all over the place hence couldn't travel or leave the country with them hence, she resulted to selling off everything and transferred all her wealth in bitcoin and had only a small hardware wallet to move with which has nothing to be questioned while leaving the country. (this is just an example) perhaps with this I think there is other money that can with stand such pressure much more than bitcoin, imagine having the fist currency during global crisis how many bags of it can you run with?

I agree with the utility, Bitcoin is the only safest asset can be brought to everywhere.

Zoomic

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What should we bitcoiners do during global financial crisis, convert our bitcoins to fiat because we are worried it would crash and we would lose everything? I think Bitcoin has grown passed that stage where we get to worry about its value during economic down turns. We should worry more about other assets like real estate, physical businesses and even fiat that would get severely affected during this period. Bitcoin has witnessed lots of economic downturns and it is still standing. Bitcoin would definitely be the last hope for many people during global financial crisis.

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I believe Bitcoin will be taking over in the next Global Financial Crisis.

The Dollar, pounds, Euro, and BRICS currency (if officially released) will all depend on Bitcoin for sustainability.

I told a friend some time ago, that if Dollar eventually falls as Global currency, Bitcoin will most likely take over as the central currency.

mindrust

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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.

Lida93

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Global financial crisis doesn't last forever, even wars are for a limited timeframe and thereafter normalcy will return. Take the COVID-19 pandemic for instance, it took the world by storm, disrupting a lot of financial setups and activities globally forcing the currency of many countries to depreciation in value but then things got back to normal and in not less than 4 years after a closing price of $11k+ back in 2020 bitcoin price today has gone up 9x the price It was during the COVID-19 pandemic which a lot of countries currency are still struggling from the inflationary effect of the pandemic.

I think there's nothing new of a crisis which bitcoin in it's few years of existence hasn't witnessed and survived, therefore questioning it's ability as a hedge to any future global financial crisis only points to a deficiency of detail information about bitcoin history from whomever is throwing out the questions.

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Quote from: TravelMug on January 06, 2025, 04:16:50 AM

Haven't had we seen Bitcoin becoming a hedge during the pandemic?

That is already a big test for the market, and in the beginning, we go down hard as low as $3k that 2020 because we really don't know what to expect and what this Covid-19 crisis is. But then again, Bitcoin's shows it's resiliency, we not only bounce back but even in the middle of it, when all borders are crossed, Bitcoin goes on a new all time high of $69k.

So I do not understand why we need to question Bitcoin again, and even if there is war in the background, we hit $100k or more last December. As I have said, we have been tested and pass with flying colors.

Not only bitcoin, the entire stock market as well as gold also increased sharply during covid and the reason is because the government printed tons of money to pump into saving the economy. But for that reason along with the war between Russia and Ukraine caused inflation in the economy and inflation peaked in 2022. If I remember correctly the entire stock market and crypto market were selling off heavily at that time, only gold continues to rise in price because it is considered the only safe haven, the rest are considered speculative assets and suffer the same fate.

And that's a small challenge compared to the great recession of 2008 or what World War I and World War II caused.

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

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?

i do not think bitcoin should be the one getting ready to be honest bitcoin is bitcoin it is not going to change on its own and "get ready" for a global financial crisis but rather we should ask if we are ready to face a global financial crisis should it happen anytime soon are you ready to trust bitcoin and be patient

i do not think bitcoin's volatility will ever be solved or at least completely it may get reduced but that is as far as you are going to get so you can't go running away every time you see bitcoin change in price

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Quote from: fikrett on January 06, 2025, 07:02:20 AM

You know Bitcoin dropped too during them, but that doesn't mean it's not safe and would be badly adjusted to the situation - when there is instability, everything shakes and crumbles due to the sentiment in the world and market alike.
The main thing is that Bitcoin recovers after that and goes forward.

Global economic and political conditions affect the price of Bitcoin. But just as you have said,.the price will always recover after sometime. Long term Bitcoin investors don't care about the global instabilities because it will only take time for the market to recover. If I am keeping Bitcoin for one circle and above, I wouldn't give much attention to short term political or economic conditions because they are sources for FUDs. In some countries, you cannot compare the drop in Bitcoin with the loss of value of some currencies. I know a currency that lost almost 80% of its worth in two years.

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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?

There is no such term as safe heaven during a global financial crisis. Whether Bitcoin is ready or not, depends on the severity of financial crisis. If there is a severe crisis, then no one has time to invest in Bitcoin and hodl, I even think that during severe crisis, people not only actively start selling of their coins but there will be a significant growth of crime rate and financial crisis can quickly turn into a much greater crisis.

By the way, if countries save some part of their strategic reserves in Bitcoin, then it worth thinking. In that case, I would try to not touch my investment as much as I can unless I'm starving and there is no other hope for the moment. Overall, I think that during financial crisis, it's better to think about what business will rise and put all of your effort into that business instead of investing in stocks and cryptos.

fikrett

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Quote from: Zlantann on January 06, 2025, 06:21:26 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?

Bitcoin has proved to be a safe haven during some poor economic conditions. Some countries have faced drastic drops in the value of the local currency and hodling Bitcoin instead of fiat has proved to be valuable at that time. Some people who kept fiat in banks during this period gradually lost a large part of it since it lost so much purchasing power. But people who decided to hodl Bitcoin during this period didn't only hedge their funds against inflation but also made good profits. This is the reason why even when the government is discouraging its citizens from engaging in Bitcoin, its adoption keeps increasing.

You know Bitcoin dropped too during them, but that doesn't mean it's not safe and would be badly adjusted to the situation - when there is instability, everything shakes and crumbles due to the sentiment in the world and market alike.
The main thing is that Bitcoin recovers after that and goes forward.

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

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?

You can use the black swan event with Covid-19 in 2019 and its announcement by WHO in March 2020, as an example. Bitcoin was dumped on that pandemic announcement day, but after that it recovered well and the full bullish market continued very sharply.

In future global financial crisis, perhaps Bitcoin will not be immuned against short term dump, and you must prepare for its dump, but if you can survive through dumping time, you will have good profit later with market rally.

Bitcoin adoption increase with time is a very good support for new demand on Bitcoin, and supply of Bitcoin is limited, so new purchasing demand and new capital in this market will help Bitcoin price. Global financial crisis won't be comfortable time for all, but if you have reserve money for it, and you have bitcoin in your portfolio, after several years, I believe you will have very good investment ROI.

Zlantann

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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 proved to be a safe haven during some poor economic conditions. Some countries have faced drastic drops in the value of the local currency and hodling Bitcoin instead of fiat has proved to be valuable at that time. Some people who kept fiat in banks during this period gradually lost a large part of it since it lost so much purchasing power. But people who decided to hodl Bitcoin during this period didn't only hedge their funds against inflation but also made good profits. This is the reason why even when the government is discouraging its citizens from engaging in Bitcoin, its adoption keeps increasing.

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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.

I do see the bright future for Bitcoin filled with lots of entities / countries following what the US is doing and talking about already.
They may not be all inclined to learn Bitcoin and think about it not only as the lever for investment, however, it still represents the ability and the willingness to make things with Bitcoin and use it on a higher level overall and juridical-wise.

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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?

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.

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Recession is not always caused by the government, or any entity people are linking fiat to. Central banks are responsible for enacting policies which can help the economy to get out of the recession. This means when the global market is in a decline, people are more likely to save which means people are more likely to purchase precious metals and assets, like Bitcoin! However, depending on what caused the recession, this may not necessarily be true; several downturns or FED policies has similarly caused a decline in the price of Bitcoin.

Now, people who are claiming fiat = bad and crypto is the solution + drawing comparisons to Cyprus’s crisis do not reflect the definition of a ‘global’ recession. Such incidents are largely localized and they’re probably of a huge concern if they were to happen globally. Should that happen, Bitcoin would be the best medium of exchange. Else, Bitcoin will survive, like any other asset but whether it goes up or down in price depends on how the market sentiment really is.

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