Topic: Recession and Bitcoin (Read 517 times)

Let's talk about the new technology and the fact that we are talking about the idea of deflation here which is actually what makes bitcoin come into creation today. If we are not skipping that part, I want to believe in the moment where things are going crazy, a lot of people will be looking for easy way out as a haven and with physical assets being one of the easiest ways back then; a lot may start considering digital assets.

We all know institutions may start beginning to have that planned out, hence this attempt of seeing the value drive down. I hope I am not wrong, but I will gladly take my chances with the crypto space anyway.

A lot of people are still imagining bitcoin may not be the safe have from all I have read so far, but I guess that is one debate that time will eventually solve. I believe bitcoin and some other cryptocurrencies will be used more as a safe haven and looking at the fact that is a decentralized currency, it makes it easier to still carry out transaction activities easily rather than when we put our funds in physical assets pending when the whole recession will subside. Satoshi brought about the blockchain technology and built the first coin on it because of this, and what makes us think this vision will not come into play very soon.

What financial crisis are you talking? I am not aware of such crisis. Can you enlighten me? If you are talking of those normal global economic crisis, I don't think it will be affecting the price of the bitcoin. In fact, the price of bitcoin should be rising during such crisis. Everyone will move their fiat investment to bitcoin or other crypto currencies, since investment on those during the crisis makes proper sense.

Yes, the cryptocurrency market will follow the decline of the financial crisis. Bitcoin will take off when the financial crisis is out of control. This may be a long process. Now we have seen a decline in cryptocurrencies, a decline in the stock market, and a drop in crude oil.

It did came back but I think it is just going back and forth again.

I do not know what is happening but we do know that it is normal for Bitcoin to be this way. With a lot of investors or users in the world, the volatility became more higher than we expected and might became higher the more the demand increases. We should be ready with the upcoming changes, I am not saying that Bitcoin will be going down but we should be ready.

In the context recession can vary, it only depends on which type we are talking about. If it is in terms of currency such as most replies inclined then saving money in Bitcoin later in future will save from that upcoming recession but if it is general economic recession then more is needed than just saving in BTC or any crypto it's totally affecting all economy.

The crisis might come! As of now, dollars and cryptocurrency devaluated much. I expect that many people will invest in bitcoin once there is a recession in our economy. They will backed their asset through bitcoin since fiat currency might lose its value. Well, I hope crisis won't come next year because we lose a lot in 2018.

People are only going to use bitcoin out of desperation as we have seen in other countries, people are not very fond of the ideas behind bitcoin that is why they do not adopt bitcoin as fast as we are doing it, but when they find themselves in a difficult situation like a crisis in their county they will use whatever that works and bitcoin will be an option at that point but not before.

I'm no so sure as many cryptos derive their use from sending funds safely across borders. If that falls then I think demand for Crypto will too.

Exactly, sometimes people forget so soon about bitcoin and how far this digital currency have come. I believe nothing good in life comes easy, there are bounds to be ups and downs in our lives. This is not the first time bitcoin is going down, I know it would bounce back bigger and stronger.

Probably we are forgetting about the possibility of having a digital gold in our hands. Thinking bitcoin will be obsolete actually made me laugh considering the fact that when one is weak, one actually will have to be strong.

If fiat is crashing, the main idea is to be looking for easy way out and I am sure that is how bitcoin is going to be considered and I won't be surprised if the bigger players in the industry are already eyeing it and trying to fool everyone into not believing in bitcoin, so they can have the best of it at a much lower value. Time obviously will tell us who is wrong or who is right.

Well, you may have some point there but have you not imagined the fact that since bitcoin is deflationary and which makes it a possibility of the fact that it is a new technology, the institutions may want to take good advantage of it to store up value and once that is done, we all know obviously the value will get driven up and then we get to see others trying to pop in to survive.

Looking at the way things have turned out over the years, I feel this look more like something that is more possible than seeing the value of bitcoin get tapped down but like you said, any of us may be wrong until we get to see how things actually turn out.

It depends on which country the recession is in. For the USA it won't make much difference because the USD is a strong currency. However, in countries like venezuela bitcoin is more useful during a recession as their currency is too weak

Honestly I have never seen from this point of view. I have always tough keeping bitcoin down was easier for whales and their contracts so they kept it low and made bank, never considered the fact that people needed liquid assets to keep living during times of recession.

It is true that we will need a better coin but its not about the tech improving as much as having a lot of users. Bitcoin has a lot of users, I mean A LOT compared to other coins, you can create a coin so perfect that it will never be surpassed but it will still take a lot of time to get as many users as you can to reach the bitcoin levels. It is not as easy as it sounds to do so.

It means you are not satisfied with bitcoin. Anyway this is nature of human that it never gets satisfied from single element. Its choice always be changing on and on. So you can’t just assume the end of happiness at any moment either it is anything extraordinary to achieve as well. Likewise in bitcoin world, now having such amazing coin, people are looking for a bigger and smarter coin.

This sounds really logic, because all over the world we are facing those rules: Something is developed and every next version of that would be more developed more secure and better than in a past.

Pay for stuff with fiat? Are you serious? In the case of recession, fiat is crumbling, everyone is trying to look for an asset that would obviously be increasing in value and it is actually how we perceive the space that counts.

What most of the people who keep saying bitcoin will take a hit too do not understand is that, it all depends on how we all perceive bitcoin, and since it is a deflationary currency anyway and as long as people see it as a digital asset, what makes us not to think, the idea of fiat being dumped for the next possible asset even though digital could actually be in play.

I know none of us can really tell what could happen, but this seems more of a possibility to me and since fiat is taking the hit anyway, I would rather try to pick the digital space as one of my safe havens during recession. At least, better than the big financial players and insitutions beating me to it, as most of you who keep thinking it may take a hit, may just actually end up getting in at a huge price.

If the time of recession comes, bitcoin can also be affected by it. We cant tell it on how it will go now until we see it happening.

Not all of these people that wanted to avoid the recession will choose bitcoin as their #1 option.

Traditional investors will still choose and say that gold and silver assets are going to be safer than bitcoin if they know how volatile crypto's are.

Yeah, over time and with the way things are going, I expect that a time will come when instead of gold, a lot of people and investors will see this space as the best spot for them to at least store value.

In the case where fiats are losing it and the recession is in play, it is normal to see investors trying to see what they can hold in most cases and this is the reason why some physical assets like gold always get to hit a boom during these periods and that is one thing to expect would happen in the case of bitcoin.

To be honest, it is still unclear that how the market will respond to correction but if there is any pressure from the government or legal institutions then naturally people will prefer using cryptocurrencies in such case to defend their money. Even though crypto is a volatile market, it is still might be better to hold money in crypto if there is no guarantee from the government to safeguard our money.

* Greece Seizes 500,000 Bank Accounts worth Euro 1.6 Bln, Escape With Bitcoin.

The statement is somewhat dicey, but i don't think bitcoin can go into recession considering the way people are rooting for it. The only problem i see with bitcoin is that it is not centralized and as such internet flop can affect it, but for going into recession is not something that will happen anytime some at least not now

Well, as volatile as BTC would be. I think recession will affect the price of it. It doesn't exclude crypto currency on this. But I guess we can say that crypto currency will be our saving light since this investment option is so volatile that it could still follow its trend even after the recession hits

There's no chance bitcoin will be an asset that can be like gold. Until now, gold has become a safe investment place and much in the choice by investors. Bitcoin has not been able to be a place for investment, the internet network is too difficult to say as a safe place. Only people who dare to start an investment in bitcoin, they are ready to lose money under any circumstances.

I think Golds is the safer asset rather than bitcoin,because Gold can't be stealing by anybody when you place it at the right place and safeties place.But bitcoin can stole by anybody when they know your wallet or they can access your wallet.So be careful to trust people guys.Money is the topic between Gold and bitcoin.

I think that if there's going to be a recession, Bitcoin will take a big hit too.

I would see a lot of people making withdrawals to be able to pay for stuff with FIAT. Usually, when there's a recession, everybody gets hurt and with the volatility of the crypto market, I think it will be the first one to be hit hard.

 I was thinking about this for a while and I made the conclusion that everything is depending on us, humanity. If we would make decisions which would be positive for a blockchain technology improving, it has an ability to became a worldwide payment system. And vice versa.

If there would be a recession, all forms of money we hsve today would be useless, and the only legit form of payment, will again be gold or we migjt go bakc to a barter exchange,  bitcoin would also not be amsafe haven for all, since bitcoin is volatile, rather than sepnding bitcoin, people might just HODL for a very long time and wait till the recession surpasses, but during the event, bitcoin will also be obsolete, since its fiat counterpart would be of no value.

Recession is normal healthy economic cycle or it was.In that modern financial world what is manipulated by central banks healthy economic cycles don't occur anymore.Gold is not safe investment because dollar will rise.Bitcoin in my opinion is  financial asset
already adopted by speculators in btc futures.derivative traders don't care of kind of asset they make money when price rise or price is going down

Speculators have paradise on bitcoin trading because bitcoin trading is not regulated zero scrutiny that what is illegal on fiat money market is legal on btc
I hope CFTC will do something in that case it can help crypto a lot

If the recession predicted by the economist experts does happen then Bitcoin will be the safer asset for people and this would also give Bitcoin more popularity and more profit for we cryptonier. Meanwhile, this could be the reason why the whales flooded the market so we could buy dip.

Virtual entities such as Bitcoin (because they do not carry currency features) have a permanent quality because the new technology behind them is applicable in different areas and because of the existence of individuals who always want to operate outside the public control and banking system in the world.

On the other hand, if you read a bit of financial history, unconscious in an asset group, do not know the risks, and only investors who deal with inflation information, the speculative balloon will inflate and explode soon.

people generally had    insecurity about bitcoin . this recent drop  price suggests that we are going to have a somewhat calmer period.  we'll have to wait a while.

I do not think so. the more advanced technology will create a better coin and superior among coin or token that already exists. everyone needs better coin and long term prospects.

The simple answer is No. Bitcoin won't be counted as a safe have for your money or any other cryptocurrency in that matter. Come one guys it is the recession, unemployment is up and profits are down, the only way to compensate their need for money is of course liquidating their assets and cryptocurrencies being more liquid compared to real estate, I think cryptocurrencies is are the first one to fall. I maybe wrong but more liquid assets tends to changes more as they are easily sold unlike real estates and other immovable properties. Bottom line is no asset is safe during the recession, but this could be everyone's opportunity to catch something at a cheap price.

For me bitcoin looks similar in terms of investing to gold, but with only one exclusion,  that in my country gold is continuously growing in its price,  and bitcoin is everytime jumping.

As with every currency, the rise and fall of btc only makes it a more reliable means of exchange. Shows it's driven fully by market forces

May be you are right and this crypto will be the only option in future because of the advancement in technologies and the outdated way of cash printing.

Even if it is resection, and even if it is the case of unemployment, Bitcoin will stand as robust as possible and might even outshine the USD for the need for an international currency available to all and which do not need the job of printing and carrying cash in lockers will be more.

Recession and Bitcoin I do not know what it means for me, until whenever I will choose bitcoin to work, because I work in bitcoin for a long time, bitcoin that will be number 1 to anytime.

Bitcoin has that capacity and potential to help during World economic collapse if our leaders can really adopt it.  I have find out that no matter what our governments do or will do against bitcoin they are going to come back and used it during recession.  The only thing is that bitcoin is decentralized and governments cannot control it and that is why they have not started using it to help our economy.

Another recession? I mean we haven't even recovered from the last one. But i think, like any othet economic asset, BTC and other crypto currencies will be affected by the recession when it hits... Again... But i think there was this country who actually didn't have a choice and used crypto currency because their fiat couldn't handle it.

If you actually took time to read what he posted, I am sure you will find out he was talking about bitcoin being used as a safe haven during the period of recession and not bitcoin being in recession as you have mentioned.

Yes of course, bitcoin in the long run I believe will be a safe asset to store value during global economic meltdowns and recessions and this would mean a lot for this space and the early holders anyway. It is already considered as a digital asset, although volatile but that volatility will change anyway in the phase of huge global adoption.

The achievement of Bitcoin growth is influenced by many uncontrollable external factors for now, such as market and other mechanisms, then, there comes a time when the economy is entering a recession, every market will have time to face a recession, but I think in the future Bitcoin will not into the list of recessions, it will not be bad, where many people see Bitcoin in proportion to gold and other assets, increasing age, growing fans around the world and being able to avoid at least a recession, no market will continue to glitter.

I don't think that's true at all.  If a recession hits and people are out of work, they're probably not going to be buying a "currency" when they could spend what little fiat they make.  I think bitcoin is very prone to being adversely affected by a tanking economy. 

Having said that, bitcoin boomed during the last recession--in fact, it was born right at the beginning of it and bubbled over right in the middle of it (2013-14, when Mt. Gox happened).  I suspect that when the next one comes along, the price will probably drop significantly.  But who knows.  I tend to think of bitcoin more as a speculative asset than a currency, and it acts kind of strangely at times.  However, the rules of economics and finance are pretty much set in stone.  Bitcoin doesn't follow its own rules, even though it appears to occasionally.

Well,  it seems that you think bitcoin will recession and you're not believing in the future that bitcoin will rise again. How do you can get your success when you always think that bad thing will happens ?

Recession in my opinion will not affect bitcoin because bitcoin is a very safe and good digital asset compared to other assets. but that hopefully does not happen in the global economic recession.

Do you think the bitcoin is balancing? This is silly, anyone can see that the bitcoin has gone down very fast and continuously throughout 2018. It resembles the ragged after a flower blooms.

bitcoin right now i think in the stable position, in resistance price in 6,3k and i think not in the short time bitcoin will recover again in the last year like before we know

Positive years with good profit and economic stability and recession times change in periods.
Maybe it's time for new recession, although that depends on which part of world we are talking but still no.one can't guarantee that Bitcoin will be the stability point. Have you forgotten about high volatility and extreme fluctuations?
Anyway, I don't think that Bitcoin can be our saviour during recession time although it's not closely and directly tied to classic economy. We can rely on it partialy but it's not very likely that it can handle all the pressure.

that's right, and all predict bitcoin will continue to recession until the fourth quarter of this season. meaning in the next few months bitcoin still can not rise signifikant. but once the bitcoin has recessed to the bottom of its portal, it will go back up to the moon.

I don't think bitcoin can stand out during recession the reason is the volatility of this crypto can give no confidence to be the assets during recession.

It may happen. Because we should not forget that bitcoin and other currencies are nothing but bunch of the algorithm and smart contracts over the blockchain. They are always kept unchanged no matter what. The value each block receives is all about the market cap that it has. So if we send our assets into the bitcoin and store there then we already secure it with the bitcoin as its unit. It doesn't matter if in recession the prices went down because as soon as the recession period gone then we can see huge plunges in it and thus golden values to our holdings. So yeah it could be way to save our assets.

This is   a good  question.  i  think   bitcoin  will flourish   in  such  a  situation.  this  is  because it will be  considered safer  when  compared  to fiat.

Recession and Bitcoin....If the prediction of some experts about recession is true? my question is where? which specific country will be affected? It is Global or Regional? Now, how this affect the Bitcoin or the crypto world market...for me, Bitcoin won't be affected since it is Decentralized system of Digital transaction. Economic melt down of one country wont happen if there is not reason for it, like war, Oil price hike and a lot more big issue affecting such country but with the financial institution in placed no government would not do something before the meltdown or recession.

I remember europeans scrambling to purchase big screen tv's and electronics around 5 years ago when there was concern the euro would devalue and many expected the long term outlook of big screen tvs to be brighter than the future of EU printed fiat. Back then the economic crisis of 08' was fresher within public consciousness and there was much more interest in gold, precious metals and commodities deemed to have intrinsic value™ as people invested more effort into protecting themselves from economic concerns--which back then appeared to be a much more credible and dire threat.

In the present, 10 years removed from the 2008 crisis, people have relaxed their guard and forgotten the necessity of not trusting banks, governments or regulators to warn or advise them as to what the best policies are to avoid economic / financial trouble. Not many remember how little warning there was preceding the last crisis/recession, people probably feel better forgetting such things.

If there is another economic crisis or recession, we could see renewed public interest in gold, precious metals and bitcoin as there was after the 08 economic crisis. We could have renewed interest in doomsday preppers constructing bugout shelters or post apocalypse survival bunkers as they bury gold and silver in their backyards in preparation of government default or market crash.

When economists, analysts and experts have consensus agreement current budgets and spending are "unsustainable" it means everyone universally agrees a crash will occur at some point. The question is when. There is a slim chance reforms could solve many of the problems we face. What makes things difficult is the lack of knowledge and information available. Specifics in regard to why healthcare may be unaffordable and expensive prove elusive and impossible to come by, which makes issues regarding those topics difficult to identify much less solve.

Average people having more incentive to try something new and get outside of their comfort zones in terms of mainstream bitcoin adoption could represent a positive step towards addressing many economic and financial issues people face on a global scale. The preferable scenario is for some type of positive scenario lending incentive for a higher proportion of crypto adoption, without it being fueled by negative precedents such as recession or economic crisis.

Bitcoin is a fantastic thing and - with a little bit of skill and luck - it allows gains tht are impossible with other forms of investment.

But it is too unstable and volatile to consider it a security for the future.

In the event of global social problems or recession, I continue to believe that gold is the best option: bitcoin existed from 10 years, gold from 5000 ...

So, I keep parts of my assets bitcoin part for trading, but every time I can buy some gold.

Attention, PHYSICAL gold, not paper certificate!!!!!

Bitcoin has been with the founders and investors for more than a decade as you have believed, but the bitcoin has its ups and downs as well as the pace or pace of development it.

We'll I dont think that will be the case. Bitcoin will actually have to make its own support line to sustain in the time of recession otherwise it may drop to value of thousand dollar or below it. Do not forget that bitcoins' complete legacy is dependent upon how much money is being poured into it from the real world and thats two it gets value for it plus market cap for sustaining the long term journey. When the recession will occur then this money will get shut off because people mostly will transfer their fund into gold and silver as solid proof of stake. Thats my guess all about it.

IN MY OPINION , gold is a physical asset compared to bitcoin. The risk of investing into bitcoin is much higher compared to THE gold ... 

bitcoin price depends on the users, if many are capable in acquiring a bitcoin, the price will go up, but if there will be a recession, the price of bitcoin follows the downtrend, let us look at this example, many people are not yet into bitcoin, from the time it started to circulate online, the price varies, as the demand increases, so is the price of bitcoin, depending on the market, since we are talking about globally, the ratio is unparalleled. if recession occurs, the buying power of a nation is diminished, followed by another nation and so on, we can expect a deterioration of bitcoin price due to the diminished demands for it globally. therefore, we cannot say that bitcoin will still be safer if recession occurs in the future.  

Well, gold is a physical asset compared to bitcoin. The risk of investing into bitcoin is much higher compared to that of gold therefore global adoption will demand a regulatory body and that will diminish the important feature of the coin as being decentralized. Recession in the value of bitcoin creates more panic than any other invested asset. Well, its our hope that the coin makes a massive ascending once again and refrain from massive volatility.

Bitcoin is already being used in some countries that are struggling with Hyperinflation, to protect the value of their wealth. http://money.cnn.com/2017/07/28/news/economy/venezuela-cash-crisis/index.html

https://usethebitcoin.com/venezuela-moves-towards-cryptocurrency-mining-to-avoid-economic-problems/

So, if your government is destroying your local currency with bad political decisions and you need to protect your wealth, then Bitcoin could be the solution. Last year a lot of these people even increased the value of their wealth with 800%+, when their local currency failed miserably.    < The Bolivar currency was down some 98% against the dollar in 2017 >

We will see if such recessions will occur in the future but it's no doubt that bitcoin will be the another choice of big investors to save their money.

Putting it up to an asset that can fight the recession is what they will be looking for.

Yeah it will.

I see signs of market downturn. But I think this is a frequent occurrence with the financial markets, and after a recession, it usually grows pretty well. I believe in blockchain technology will bring the market back to its peak.

That’s what most of us expect. During recessions people spend their money on “safe” assets, like gold, and bitcoin is said to be gold 2.0. I think it is likely that a recession will be a big boost for bitcoin but we can’t leave out the possibility that people will buy other types of “safe” assets for some reason and not bitcoin.

What happens during a recession? People lose wealth. Companies can not make profit, there are less jobs and massive downsizing on a large scale. People will not even have enough money to move into Bitcoin(or any other dominant cryptocurrency) , as whatever they own as assets have become worthless.

As it stands , Bitcoin is already seen as a risky venture by non-crypto enthusiasts (who actually form the majority). Fear of this risk will be more heightened in a recession era with people believing there are better off keeping their money than putting it in a supposed safe asset as Bitcoin which they believe to be risky.

It therefore depends on Bitcoin hodlers in a recession to build the confidence because if they are also rushing out of bitcoin during the recession then there would be no point to regard it a safe asset.

No, I don't think Bitcoin will be included in that future recession if there is. To think that Bitcoin has been used globally for transactions online, then the value of Bitcoin is much more valuable than the other cryptocurrencies. So including Bitcoin in a recession is not an option.

I think the kind of recession that will affect bitcoin is a global recession because bitcoin is decentralized. In such level, it is going to be a positive impact because their will be pressure on fiat including its local accessibility. So people will appreciate bitcoin transaction and this will increase demand, leading to scarcity which will increase price.

Bitcoin is a currency, and I think that due to its decentralized nature, it shouldn't be that affected by a recession.

Interesting fact, bitcoin was actually released in 2008 which was the year when the GFC hit.

Prices could take a hit, just like silver/gold took a small hit in 2008. But it would definitely be a lot less affected than other asset classes such as shares in my opinion. But there is also the possibility that investors will turn to bitcoin as a safe haven sort of asset, as you said, just like the role that gold is performing at the moment. In that case, BTC may even rise in adoption and as a result, value.

There's always good probability for this could happen, althought its all depend on BTC development itself.

But so far everything looks pretty good.

I hope it will be a safe solution for bitcoin in the future, and more attract investors and even attract governments in every country.

I think you explained it better, yes can bitcoin be alternative for the people in the economies where protecting their asset value will very hard and Bitcoin can provide them better and easy alternative in stopping their losses.

He is trying to say that when recession happens in one economy or in stock maket can bitcoin be the best alternative to make money. For me its a yes, because cryptocurrency will be more effective in the future but of course there still no guarantee about this and maybe bitcoin will also experience this, who knows.

Do you think bitcoin will be in recession and do you think we are in a downturn, bitcoin is having balanced and almost stable days because of the price difference it has in July few

As many experts and economists are predicting recession in near future, will Bitcoin emerge as safer asset globally during recession like gold and similar assets, global investors might look for a global standard asset as compared to regional or fiat currencies which devalues in recession.