What happens to BTC/Alts when stock market crashes? - page 2.

deisik

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Quote from: Zogrd on May 24, 2017, 08:16:48 AM

What is your opinion on the BTC/Alt market in an event of a stock market crash?

1. BTC/Alts rise because these are seen as alternative investment.

2. BTC/Alts fall because these are seen as an even more speculative asset than stocks.

3. Nothing happens

It is hard to answer definitely to your question

If it is ever possible at all. The main reason is that Bitcoin is still a rather niche financial instrument, thus it can come out any way. Indeed, Bitcoin is as speculative as most speculative stocks out there, but I still don't think we can measure it up with the same metric as stocks (i.e. most risky ones will fall the hardest). Basically, Bitcoin is a thing unto itself, and people heavily invested in stocks (like, say, Warren Buffett) are hardly interested in Bitcoin. So it could be the third option, but this is just not possible since everything is so interrelated and intertwined. Personally, I'm more inclined to think that if only the stock markets crash (and nothing beyond that), Bitcoin may actually gain in value (as well as alts)

mk4

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I think the price of BTC will rise, together with some alts. but it wouldnt be a huge raise, just a bit.

European Central Bank

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this is the great unknown. bitcoin has basically existed during a never ending bull market in stocks.

i don't think there are many investors who do both stocks and bitcoin so maybe there isn't much overlap. by the time there is a stock market crash it's possible bitcoin will be on many more radars so more traditional investors will get in.

GreenBits

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Quote from: kolloh on May 24, 2017, 10:29:50 AM

Not all people who invest in the stock market know about Bitcoin or view it as a good investment. I'm sure that we will get some additional investors into Bitcoin if the stock market starts to crash but I'm not sure how much of a noticeable impact it would make.

Even if we saw a significant slump, instead of just a crash; gold is much more popular by magnitudes. I don't think people would be so eager to jump fight back into a volatile asset after getting burned on traditional assets. Also, that three day settlement period on accounts would be the kiss of death for a late investor, by the time your funds cleared, that is, if you weren't already positioned, you'll probably miss out Wink

franky1

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unless 2 events happen

network wide bug
merchant services like coinbase/bitpay move to centre around an altcoin.

then just treat the bitcoin price movements as temporary drama.
if the price goes down due to temporary drama dont treat it like a panic, think of it as a discount day

however dont invest more than you can afford.
if you need your hands on the funds within 6-24 months dont invest that amount because if a speculative temporary drama bubble bursts it may take a coupl years to recover.

in short. dont panic. sell what you 'need' and wait for the discount day to plateau and buy want you can afford using funds you dont 'need'

shinratensei_

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Quote from: Zogrd on May 24, 2017, 08:16:48 AM

What is your opinion on the BTC/Alt market in an event of a stock market crash?

Nothing happen with bitcoin, without a lure to gained the attention by the investors and they will not see bitcoin as an alternative currency. There are some alternative ways such as gold and silver. I may think if they will take a part to buy more gold or silver. This will not be closed the possibility some of the portions will go to the bitcoin.
But the crashes of market stock can be a good opportunity for the big player to buy more cheap stock. If you've even read the story of Napoleon Bonaparte.

kolloh

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Not all people who invest in the stock market know about Bitcoin or view it as a good investment. I'm sure that we will get some additional investors into Bitcoin if the stock market starts to crash but I'm not sure how much of a noticeable impact it would make.

Kprawn

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If the stock markets crash, people will struggle to move their investments to Bitcoin, because these stock markets are usually closed to prevent

massive losses. { I am talking about a full collapse } .... Bitcoin has been seen as a safe haven before, so I reckon some investors will take some

money and shift it to Bitcoin to hedge against these losses. This is coming, because it usually happens in 10 year cycles ... "Housing Bubble" /

"Bank crisis" / " The dot-com bubble " etc... Wink

Nagadota

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Bitcoin rises, alts stabilise.

My logic is that a large number of investors will put their money into gold and there will be a large asset money. In the same way that they're not actually using gold very much, they would view Bitcoin as an alternative asset which has had historically high returns. Since they're out of the mainstream, each investor is basically trying to get before the next one.

With alts this is less likely to happen since cryptocurrencies are seldom used for merchants yet anyway and their "innovation" would not affect where investors put their money for an asset (they want something with higher liquidity already).

ViceOfBTC21

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The price of alts will go down but Bitcoin's price will go up since investors would buy coins and limited supply of 21 million will require deflation to allow all people in the world to use Bitcoin. Ex. 2015 Greece crisis was positive for bitcoin price since it was more stable than Greece monetary system. After Mt.Gox crash in 2014 I was happy from dropping price of Bitcoin. Now exchanges are decentralized enough so there is low risk of Bitcoin crash.

Zogrd

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What is your opinion on the BTC/Alt market in an event of a stock market crash?

1. BTC/Alts rise because these are seen as alternative investment.

2. BTC/Alts fall because these are seen as an even more speculative asset than stocks.

3. Nothing happens

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