A few months ago I assumed that once covid was gone, which it pretty much is in most of USA then the world would get back to normal. No more printing and stock markets and crypto would pullback. However not really seeing that yet. Stock market keeps making new highs. People not wanting to work. Everything being expensive like cars and houses. Even luxury clothes or handbags having lines full of people. When will this end?
I don’t see it going on forever. Market needs a correction. Maybe when Fall comes and we are a massive correction in the stock markets we will finally see some pain. But right now markets keep going up and up and nobody knows when it will get in with reality of how the world works.
Topic: Will the next economic crisis in the world instead cause financial inflows into - page 2. (Read 512 times)
July 11, 2021, 10:42:44 PM
July 11, 2021, 04:38:28 PM
Such circumstance when an economical crash or a world scale financial crisis happens is not that out of proportion. Even with just a few months of being immersed in the covid-19 pandemic, lots of people have already been looking for other alternatives to earn money or save their assets from the effects being made by the global pandemic. Even more so as the duration of the pandemic got longer and longer. I say this since lots of people I know personally have started venturing into this industry and even going as far as investing in crypto related games. Their reasons? They need an alternative, can't stay idle and unable to provide for the people relying on me and so on. Still though, we cannot be sure about anything yet since when jobs or other ways to earn money are scarce, how the leaders of a country react to such phenomenon would be the only thing that can give an insight to everyone on what may happen next.
July 11, 2021, 01:44:23 PM
What is likley to happen to BTC in the imidiate aftermath of a global economic crash, and what will a recovery look like in comparison to the economy?
In my opinion if global economy will crash definitely Bitcoin and other crypto will crash too, and i think it would be hard for Bitcoin to recover cause will priorities their basic need rather than digital assets.
July 10, 2021, 03:07:08 PM
What is likley to happen to BTC in the imidiate aftermath of a global economic crash, and what will a recovery look like in comparison to the economy?
In my opinion if global economy will crash definitely Bitcoin and other crypto will crash too, and i think it would be hard for Bitcoin to recover cause will priorities their basic need rather than digital assets.
July 10, 2021, 08:48:31 AM
What is likley to happen to BTC in the imidiate aftermath of a global economic crash, and what will a recovery look like in comparison to the economy?
I would assume that just like in the pandemic crash of 2020 march, we will probably see bitcoin crash with everything else for the immediate reaction, however afterwards we will slowly grow bigger and bigger, that looks like a possibility to me.I understand that it doesn't really sound like something that will happen very easily, but the idea that we should see bitcoin rising after a crash is something everyone agrees with, bitcoin is anti-inflation and crashes usually cause governments to print more money and when that money is printed then it becomes less valuable causing bitcoin to go up a lot bigger. That is just what I "assume" will happen but it is not something that we faced all that much, so far we only had one crash since bitcoins creation and it happened this way, doesn't mean that it will happen that way at all times neither.
Didn't all the markets grow that impressively because of all that quantitative easing? That is why everything right now feels a little bit (or even a lot) bubble like. All the money the people received seems to be flowing into markets as everyone wants/needs to make a quick buck and the greenish markets looked like the perfect opportunity for that. If there is no such quantitative easing after another crash, do you think Bitcoin would go up again the same way it did this time after/during the crisis?
July 10, 2021, 05:28:09 AM
What is likley to happen to BTC in the imidiate aftermath of a global economic crash, and what will a recovery look like in comparison to the economy?
I would assume that just like in the pandemic crash of 2020 march, we will probably see bitcoin crash with everything else for the immediate reaction, however afterwards we will slowly grow bigger and bigger, that looks like a possibility to me.I understand that it doesn't really sound like something that will happen very easily, but the idea that we should see bitcoin rising after a crash is something everyone agrees with, bitcoin is anti-inflation and crashes usually cause governments to print more money and when that money is printed then it becomes less valuable causing bitcoin to go up a lot bigger. That is just what I "assume" will happen but it is not something that we faced all that much, so far we only had one crash since bitcoins creation and it happened this way, doesn't mean that it will happen that way at all times neither.
July 09, 2021, 05:06:48 AM
I don't actually think so, or it'll be possible only in countries with a viable economy pre-pandemic, I think for countries that were already experiencing inflation and hyperinflation, coupled with a struggling economic situation, the pandemic only made their case worse and they would not be getting out of this mess anytime soon, for countries like the U.S or China, they would experience inflation no doubt, but I expect measures to be put in place to curtail it sooner rather than later, but the same can't be said of some developing and underdeveloped countries.
Which should negate most of the world's economies (which is why the majority of developing economies chose to ignore it because if they had just stopped imagine how bad their systems would crash).
It's unbelievable to see mega corporations and MNCs just go bankrupt after one month of not producing or working. Imagine how much more worse for poorer economies with less resilient structures?
July 09, 2021, 04:02:05 AM
Your guess is just as good as ours. Bitcoin has never been through an actual economic crisis in the past so all we can really do right now is speculate.
There are only 2 scenarios that could happen in the top of my head:
1. People flock to so-called "safe haven" assets such as gold and bitcoin.
2. Bitcoin holders sell their bitcoin just so they have enough funds to survive.
Make your pick.
There are only 2 scenarios that could happen in the top of my head:
1. People flock to so-called "safe haven" assets such as gold and bitcoin.
2. Bitcoin holders sell their bitcoin just so they have enough funds to survive.
Make your pick.
On point and a wrong belief that many have. Bitcoin won't just rise because we have a crisis. A crisis is a crisis and it deserves its name for a reason. Assets decrease in value, people lose their jobs and are out of cash. The last idea you are most likely to get during a severe crisis is putting the last pennies you have left into Bitcoin. You would rather be happy to have Bitcoin and sell it.
July 09, 2021, 02:28:06 AM
The economic crisis should be good for Bitcoin. The economic crisis is caused by the government messing up monetary and fiscal policies. Economic crises often lead to inflation, paper currency will depreciate, and Bitcoin will not be affected by state control, and its value will rise. To solve the economic crisis, it is necessary to return the monetary power to the market. Bitcoin has the characteristics of decentralization and is not controlled by the government and the state.
July 09, 2021, 01:57:34 AM
Bitcoin itself depends on the market, and the market determines that it is greatly affected by funds. When liquidity dries up, no economy or finance can easily get out of it. But I don't think the global economy will collapse completely and easily.
July 09, 2021, 01:51:45 AM
I think that when the next economic crisis occurs, Bitcoin should have more advantages than disadvantages, because during an economic crisis, money will depreciate and no longer be valuable, but Bitcoin will not. The more legal currency depreciates, the more Bitcoin rises. The space will be higher, thus reflecting the value as a safe-haven asset.
July 08, 2021, 03:35:17 PM
I actually expect the global economy to recover pretty fast after the pandemic is over.There will be high levels of inflation,but sometimes inflation can a serve as a booster of the economic activity.I'm sure that the central banks will find a way to put inflation under control.
I don't actually think so, or it'll be possible only in countries with a viable economy pre-pandemic, I think for countries that were already experiencing inflation and hyperinflation, coupled with a struggling economic situation, the pandemic only made their case worse and they would not be getting out of this mess anytime soon, for countries like the U.S or China, they would experience inflation no doubt, but I expect measures to be put in place to curtail it sooner rather than later, but the same can't be said of some developing and underdeveloped countries. July 08, 2021, 03:05:55 PM
What is likley to happen to BTC in the imidiate aftermath of a global economic crash, and what will a recovery look like in comparison to the economy?
I think we saw what could it happen with the economic crisis that we saw that was caused by covid during last year, at the beginning there was a panic and people sold their coins creating a crash, but then after the people began to think clearly again they realized that bitcoin was their best option and we saw a huge deal of money coming to the market, this is more or less what I would expect on an economic crisis except that it will be even more extreme if such crisis happens because fiat currencies became unstable. 
July 08, 2021, 07:43:47 AM
What is likley to happen to BTC in the imidiate aftermath of a global economic crash, and what will a recovery look like in comparison to the economy?
Are you talking about the post-pandemic era?
I actually expect the global economy to recover pretty fast after the pandemic is over.There will be high levels of inflation,but sometimes inflation can a serve as a booster of the economic activity.I'm sure that the central banks will find a way to put inflation under control.
What will happen to Bitcoin?Well,I think that Bitcoin is still bullish in the long term.It doesn't matter if the global economy begins a new era of rapid economic growth or we face a sudden economic collapse after the pandemic.
In both cases Bitcoin will be a desirable financial asset.
July 07, 2021, 10:55:16 PM
Bitcoins first recession was during the covid stock market crash of March 2020. People were assuming that everybody would sell stocks and all their possessions for Bitcoin and the reverse happened. Basically for a long time Bitcoin was highly correlated with stock indices.
So Dow Jones goes down.... Bitcoin follows.
Dow Jones goes up... Bitcoin follows.
So if there is another recession, most likely the same will follow suite. Everybody will want to be in cash. So if it happens stocks will drop, and Bitcoin will follow.
Will there be a recession? Very hard to say since the last one happened about a year ago. Seems too close however the markets always have surprises.
So Dow Jones goes down.... Bitcoin follows.
Dow Jones goes up... Bitcoin follows.
So if there is another recession, most likely the same will follow suite. Everybody will want to be in cash. So if it happens stocks will drop, and Bitcoin will follow.
Will there be a recession? Very hard to say since the last one happened about a year ago. Seems too close however the markets always have surprises.
July 07, 2021, 08:15:20 PM
As other have said, this is hard to predict. The last covid crisis, we have seen bitcoin going down very hard as well and so is the other assets. That might be the initial reaction though as after everything has settled down, the price of bitcoin recovered and bounce back and hit another all time high.
But we can't say that bitcoin is designed to be a hedge against economic crisis, it is very volatile, investors or at least the rich prefer assets that are steady and a good store of value such as gold.
But we can't say that bitcoin is designed to be a hedge against economic crisis, it is very volatile, investors or at least the rich prefer assets that are steady and a good store of value such as gold.
July 07, 2021, 05:44:43 AM
A lot of fiat based investments are going to collapse and the prices of crypto are going to plummet because some people will try and evacuate their money not knowing that their money is much safer in there since it's being hedged in inflation. I don't think that it will be beneficial to crypto that there's an economic collapse that's going to happen.
July 07, 2021, 12:59:20 AM
I believe that if the next economic crisis comes soon, the same thing that happened in March 2020 with the COVID would happen: people got scared and started selling massively to obtain liquidity. This affected all assets, Bitcoin included, and I think that's what would happen now. Another thing would be if it takes a bit longer to happen and Bitcoin is more clearly established as a store of value. In that case I think it would happen like it used to happen in the old days during economic crises with gold, people would buy gold to protect their wealth.
July 06, 2021, 10:59:25 PM
I can only guess. There are only two scenarios though. One is that Bitcoin will soar high given that the global economy is primarily based on the traditional system of which Bitcoin is not a part. Or two, it will also crash along with the economy given the possibility that a global economic crash would mean people are losing jobs, other sources of income, money, etc that they need to sell their precious Bitcoin to continue keeping their ability to purchase goods and services.
July 06, 2021, 06:56:06 PM
Covid was a big event but the monetary base was diluted during that also which has inflated all prices. Thats not the full cycle or a proper downturn, inflation and weak monetary standards ultimately lead to reset and deflation which can be destructive to various sectors and the economy generally. The current policy thinking is that its better to continually provide cheap money via debt and avoid any pull back in pricing but its likely wrong long term as the debt loses value vs real world costs. It will collapse or reset eventually, that will be the big test for crypto to experience the ending of a major FIAT standard or debt default of a country a bit like Greece but likely a far larger one perhaps Italy etc.
Jump to: