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Topic: Recession and Bitcoin (Read 4048 times)

member
Activity: 63
Merit: 10
August 31, 2014, 12:02:06 PM
#38
Bitcoin has yet to go through a period of recession of the global economy.  How the price of Bitcoin reacts could have major implications for the question of "Store of Value".
Bitcoin has no connection with what goes on around with the global economy and global economical recession.But then also having valued to FIATs after all it might hamper somehow i
sr. member
Activity: 476
Merit: 250
August 29, 2014, 12:53:45 PM
#37
In time of recession, equity usually carries discount and cash carries premium.

If bitcoin is considered cash by majority, it will go up in price. If it is considered "property/asset" by majority, it will go down in price.


I tend to agree with this. Bitcoin right now is considered an investment/asset by a majority. So you cannot say that it will go up in price during a recession.
This statement does not have logic. If you have cash then your cash is both an asset and your property. However something that is your asset is not necessarily cash-like.

To answer the OP's question, a recession itself would likely not cause bitcoin to increase in value. However to get the economy out of a recession a government will likely resort to policies that generally result in inflation which would bitcoin to increase in value in terms of fiat.

The world is engulfed in an artificial sea of liquidity right now. The reasons you see so many inflated asset price in just about every category.

As soon as the faucet is cut off, all assets class will fall due to un-payable debt.
I am not sure about this. As of now banks have huge amounts of excess reserves at the FED so the FED will not only have difficulty raising short term interest rates, stopping QE will have little effect on overall availability of credit.
legendary
Activity: 1582
Merit: 1064
August 29, 2014, 11:32:27 AM
#36
The world is engulfed in an artificial sea of liquidity right now. The reasons you see so many inflated asset price in just about every category.

As soon as the faucet is cut off, all assets class will fall due to un-payable debt.

A balance sheet recession is on the cards....
full member
Activity: 179
Merit: 100
August 29, 2014, 07:53:46 AM
#35
In time of recession, equity usually carries discount and cash carries premium.

If bitcoin is considered cash by majority, it will go up in price. If it is considered "property/asset" by majority, it will go down in price.


I tend to agree with this. Bitcoin right now is considered an investment/asset by a majority. So you cannot say that it will go up in price during a recession.
This statement does not have logic. If you have cash then your cash is both an asset and your property. However something that is your asset is not necessarily cash-like.

To answer the OP's question, a recession itself would likely not cause bitcoin to increase in value. However to get the economy out of a recession a government will likely resort to policies that generally result in inflation which would bitcoin to increase in value in terms of fiat.

The world is engulfed in an artificial sea of liquidity right now. The reasons you see so many inflated asset price in just about every category.

As soon as the faucet is cut off, all assets class will fall due to un-payable debt.
member
Activity: 83
Merit: 10
August 29, 2014, 07:03:00 AM
#34
Im poor so its not like i can lose more money.
full member
Activity: 126
Merit: 100
August 28, 2014, 10:05:03 AM
#33
If the toll of recession were to take its toll on the economy of the major economic giants like USA,Canada etc .I believe the end result will definitely be positive on the price of Bitcoin thereby a sky rocketed price rise.
legendary
Activity: 1582
Merit: 1064
August 28, 2014, 09:54:04 AM
#32
In time of recession, equity usually carries discount and cash carries premium.

If bitcoin is considered cash by majority, it will go up in price. If it is considered "property/asset" by majority, it will go down in price.


I tend to agree with this. Bitcoin right now is considered an investment/asset by a majority. So you cannot say that it will go up in price during a recession.
This statement does not have logic. If you have cash then your cash is both an asset and your property. However something that is your asset is not necessarily cash-like.

To answer the OP's question, a recession itself would likely not cause bitcoin to increase in value. However to get the economy out of a recession a government will likely resort to policies that generally result in inflation which would bitcoin to increase in value in terms of fiat.

In a recession, people tend to prefer converting their investments (non-cash assets) to cash. So the question is do people consider bitcoins as an investment or as cash
sr. member
Activity: 476
Merit: 250
August 27, 2014, 10:36:34 PM
#31
In time of recession, equity usually carries discount and cash carries premium.

If bitcoin is considered cash by majority, it will go up in price. If it is considered "property/asset" by majority, it will go down in price.


I tend to agree with this. Bitcoin right now is considered an investment/asset by a majority. So you cannot say that it will go up in price during a recession.
This statement does not have logic. If you have cash then your cash is both an asset and your property. However something that is your asset is not necessarily cash-like.

To answer the OP's question, a recession itself would likely not cause bitcoin to increase in value. However to get the economy out of a recession a government will likely resort to policies that generally result in inflation which would bitcoin to increase in value in terms of fiat.
legendary
Activity: 1582
Merit: 1064
August 27, 2014, 11:24:27 AM
#30
In time of recession, equity usually carries discount and cash carries premium.

If bitcoin is considered cash by majority, it will go up in price. If it is considered "property/asset" by majority, it will go down in price.


I tend to agree with this. Bitcoin right now is considered an investment/asset by a majority. So you cannot say that it will go up in price during a recession.
legendary
Activity: 1806
Merit: 1024
August 27, 2014, 10:45:31 AM
#29
The next recession?  What about the current one? Roll Eyes Wink

I think bitcoin price will be largely unaffected, because it is still small and is still in an early adoption phase. So macroeconomic influences are not a major factor while adoption is constantly rising, largely neutralizing the negative effects of a recession. That will change if adoption reaches its saturation phase.

ya.ya.yo!
legendary
Activity: 2590
Merit: 1022
Leading Crypto Sports Betting & Casino Platform
August 27, 2014, 09:35:05 AM
#28
the great recession can be fought with a "store of value" like bitcoin, maybe bitcoin rised because of this

What do you mean about " store of value " like bitcoin ? how to " store of value " of bitcoin ?
please give me a explanation, hopefully you can give an explanation of this statement ...

it mean that you store your value for long terms investment
newbie
Activity: 56
Merit: 0
August 27, 2014, 08:40:57 AM
#27
Bitcoin is a store of value, not a useable currency unti 2050 or so when price is less volatile.
sr. member
Activity: 280
Merit: 250
August 26, 2014, 05:38:12 PM
#26
the great recession can be fought with a "store of value" like bitcoin, maybe bitcoin rised because of this

What do you mean about " store of value " like bitcoin ? how to " store of value " of bitcoin ?
please give me a explanation, hopefully you can give an explanation of this statement ...
legendary
Activity: 2590
Merit: 1022
Leading Crypto Sports Betting & Casino Platform
August 26, 2014, 01:46:17 PM
#25
the great recession can be fought with a "store of value" like bitcoin, maybe bitcoin rised because of this
sr. member
Activity: 490
Merit: 280
August 26, 2014, 01:44:15 PM
#24
Bitcoin has yet to go through a period of recession of the global economy.  How the price of Bitcoin reacts could have major implications for the question of "Store of Value".

There is no way to tell. The value seems disconnected from real world events.



What makes you say this? I don't think that this is the case at all. I think and expect the Bitcoin market to react to negative economic events like with what happened in Cyprus.
sr. member
Activity: 280
Merit: 250
August 26, 2014, 12:47:05 PM
#23
It's like the others currency, recession of currency is normally that happen to currency, almost all of the currency in the world has the recession
So, hopefully it is not longstanding ... So we can collect bitcoin more and more
full member
Activity: 653
Merit: 217
August 25, 2014, 04:10:01 PM
#22
It depends on the kind of recession and its consequences.

If it is able to create another sovereign debt threat in Europe or another banking crisis on small countries, that can indeed promote bitcoin.

A stagflation crisis could also promote bitcoin, since any serious inflation would do.
legendary
Activity: 2590
Merit: 1022
Leading Crypto Sports Betting & Casino Platform
August 22, 2014, 01:36:11 PM
#21
up for sure, from now, the mini dump ended, no more obstacles

I would think if there is Recession, bitcoin price would go up since USD down?

but this mean that the marketcap will go down, if usd go down i mean
jr. member
Activity: 52
Merit: 50
August 22, 2014, 05:20:57 AM
#20
everything bad for fiat = good for cryptos Grin
sr. member
Activity: 392
Merit: 250
August 21, 2014, 09:10:46 AM
#19
Economic recession will definitely be beneficial to bitcoin
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