If such a thing happens the price will take the shit of the century. Anyone who thinks it's a store of value or any type of safe haven is deluded. For most it's a pure bet and when your belt is tightening your bets will be the first to go.
Those with a genuine use for it such as people trying to move money out of shithole economies or druggists don't drive the price and will still find it entirely usable still at lower values.
Topic: What will be the effect of 2019-2020 financial crisis on Bitcoin's price? (Read 181 times)
December 05, 2018, 06:07:50 PM
December 05, 2018, 06:03:20 PM
Yes, I heard this before in early 2018, people said the reason why Bitcoin moved up crazily due to upcoming 'global crisis' other than CME listing. But personally, I think, Bitcoin will be used as a tool for people to store their wealth. And the reason why Bitcoin price got dumped to this level before because of this, other than it will be used as a tool to store it, they are using it too as a tool to make a profit from their wealth when the crisis happens.
but everything is possible,
but everything is possible,
December 05, 2018, 05:47:47 PM
It could be really anything.
The big players who have started to get in could dump their Bitcoin to stay in cash, keeping the price very low and giving crypto a positive correlation to stocks and the broader economy.
The big players and the retail market could dump the market that is at the top (stocks) and buy into the market that is at the bottom (crypto) thus giving a negative correlation so we perhaps get an early bull run this cycle.
Or Bitcoin could keep operating on its own timescale and institutional investors and retail investors could keep judging investments in crypto purely by the crypto market and not having anything to do with the economy as a whole.
I have no idea which will happen, but I would lean towards the later two. I don't think people would get out of a market thats at the bottom just because another market at the top is crashing. If anything it would make sense for investors to move money from the high stock market to the low Bitcoin market to make gains while traditional-only investors are taking losses.
The big players who have started to get in could dump their Bitcoin to stay in cash, keeping the price very low and giving crypto a positive correlation to stocks and the broader economy.
The big players and the retail market could dump the market that is at the top (stocks) and buy into the market that is at the bottom (crypto) thus giving a negative correlation so we perhaps get an early bull run this cycle.
Or Bitcoin could keep operating on its own timescale and institutional investors and retail investors could keep judging investments in crypto purely by the crypto market and not having anything to do with the economy as a whole.
I have no idea which will happen, but I would lean towards the later two. I don't think people would get out of a market thats at the bottom just because another market at the top is crashing. If anything it would make sense for investors to move money from the high stock market to the low Bitcoin market to make gains while traditional-only investors are taking losses.
December 05, 2018, 02:19:02 PM
Maybe "financial crisis" is a strong term, but all indicators are pointing towards at least some sort of recession...
It would be a first time for the cryptocurrency market so I'm wondering what things will we see; maybe some resemblance to the bond market? I seriously have no idea.
The chart of the week
It would be a first time for the cryptocurrency market so I'm wondering what things will we see; maybe some resemblance to the bond market? I seriously have no idea.
The chart of the week
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