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Topic: Worrying Stock Market Drop and Fiat Devaluation - page 2. (Read 449 times)

full member
Activity: 1330
Merit: 147
Indeed the trade war between US and China has gave yuan was overwhelmed behind the incident but I don't have any idea to say that most stock investors (especially) will turn their money into cryptocurrencies. They won't take another risk to store their money into cryptocurrencies because the majority of some countries still remain same to ignore bitcoin in their country and that is an effect the investor still afraid to store their money on it.

Also, you have to know the negative news or some information that still revolve in some media when some newbies searching for an understanding how to invest in bitcoin because they will find first the negative experience from some investor who experienced a huge lost when investing in bitcoin. Moreover if we talk about the price movement of bitcoin, it feels they will be difficult to digest any price movements that occur. But, for those investors who know bitcoin before, I believe they will store a half of their money into bitcoin because there is some factors who will make bitcoin goes to increase especially in the next year.
legendary
Activity: 2282
Merit: 1023
if governments around the world begin to confiscate gold from their legitimate owners
Why would any elected government confiscate gold from their legitimate owners, even if the country is struggling economically they cannot force their citizens to hand over their investment in gold.
Even with gold investment the best form of investment is Sovereign Gold Bond rather than buying physical gold which is hard to secure and move.
stock market is tumbling because of the trade wars and we are seeing a price rise in gold because of that and bitcoin is a good investment as well.
hero member
Activity: 2884
Merit: 794
I am terrible at Fantasy Football!!!
If crypto also did not perform well, then i think people will move to gold again and prices of gold will be sky rocketing at that time.

Even if crypto performs really good, I think the majority of the money will still go to gold. There is still no fundamental changes and gold is still being perceived as the safest investment out there. Real estate investment might give better returns but the barrier of entry is way too big. Most people would buy gold and then forget about it, no anxiety whatsoever.
While I have no doubt that gold will perform well in the case of a crisis, the performance of bitcoin will depend on how big the crisis really is, if governments around the world begin to confiscate gold from their legitimate owners you can be sure that bitcoin will do really well since people will try to buy this currency that does not link your holdings to your identity and that you can carry with you all the time in a piece of paper or in the back of your mind.
legendary
Activity: 3542
Merit: 1965
Leading Crypto Sports Betting & Casino Platform
It is clear that Stock market performance are linked to a increase or decrease in the buying and selling of Crypto currencies. I think some of the investors and traders have a small portion of their portfolio invested in Crypto currencies and when the Stock market takes a dive, they just increase their investment in Crypto currencies to serve as a hedge against potential losses on the Stock market.   Roll Eyes

A day will come when institutional capital would be allowed to be invested in Bitcoin and then we will see a much bigger price swing, when the Stock market gets a beating.  Wink
sr. member
Activity: 882
Merit: 282
Maybe a global crisis is coming. Bitcoin never saw one.

Stock market drop may bring more money to cryptocurrency market, as it may be seen as a non correlate asset, which may work as a hedge against this crisis.

Pure especulation but it makes sense, and it may lead cryptocurrency holders to great profit.
I do agree with this your views, more funds are going to flow into cryptocurrency market as the momentary crisis between yen and USD/others currencies now exist. The stock market has been having bad days for more than three days now, it is a sign that the devaluation is having it deals on the world money and capital. China is a large economy and the interest rate cutting in the USA and the devaluation of yen can only move institutional and micro traders and investors to hedge their holding for bitcoin as I have decided to do now.
member
Activity: 560
Merit: 14
In the future we are Likely to see investors crossing over from stocks to digital currency. let's not push our luck yet the stock market  has history of plummeting and fast rising.
Currency devaluation comes in to service as a way countries check mate their economy to balance with the present time. But when it happens spontaneously then there is an economical hazard
legendary
Activity: 3542
Merit: 1352
Cashback 15%
With the Dow managing to sustain a decade of good run in its hands without a single hint of a massive correction, I'm not even worried on what might happen in the stock market within the next few years or so. A lot of seasoned economists are saying that we are long overdue for a correction and we're heading towards a similar recession like the one that we had in 2008. I'd like to believe on that knowing that the derivatives market is insanely overvalued and needs to somewhat come down. Perhaps by then crypto would be a good hedge and investment when all comes down to the rabbit hole during the recession, and that is already expected by a lot of people bullish or not for crypto.
legendary
Activity: 3654
Merit: 1165
www.Crypto.Games: Multiple coins, multiple games
With the sudden 700+ Point plunge of the Dow Jones and China's sudden devaluation of the Yuan what are some aspects of interest do you have that might reflect upon the current and the future of the Digital Currency Market?
It is really weird that whole world economy is going down all together these days, I mean financial world is trying to handle and not collapse all together but right now its really not looking good because one day eventually they will have to let go and then we will have a huge crisis.

I would totally understand if american economy is bad or Chinese economy is bad whatever but right now USA, Europe, Asia all are looking bad, middle east is the only one handling well because they have shit ton of oil and that allows them to make a ton of money and they use that money to invest into many things, even though things they invest into will not make a lot of money because of the crisis it is still a ton of money combined going into middle east which makes them the safest bet right now.
full member
Activity: 1134
Merit: 105
New financical crisis is coming unfortunately. And all of us should be ready for it. I dont sure that crypto is the best variant it may be affected too

We all know that financial crisis is just around the corner but we need to know what are our options in this crisis and what is the most safest investment. If crypto also did not perform well, then i think people will move to gold again and prices of gold will be sky rocketing at that time.
legendary
Activity: 2170
Merit: 1789
If crypto also did not perform well, then i think people will move to gold again and prices of gold will be sky rocketing at that time.

Even if crypto performs really good, I think the majority of the money will still go to gold. There is still no fundamental changes and gold is still being perceived as the safest investment out there. Real estate investment might give better returns but the barrier of entry is way too big. Most people would buy gold and then forget about it, no anxiety whatsoever.
legendary
Activity: 2968
Merit: 3684
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With the sudden 700+ Point plunge of the Dow Jones and China's sudden devaluation of the Yuan what are some aspects of interest do you have that might reflect upon the current and the future of the Digital Currency Market?

Make up your mind. Is a global economic crisis -- and this is generally reflected by both stock markets everywhere shedding points, plus currency devaluations -- bad or good for Bitcoin?

So funny to see analysts talk up the potential for Bitcoin when traditional vehicles fail, and then next to say that the negative sentiment is spilling over to digital assets.

Bitcoin was born from the ashes of a shattered global financial and banking system. I'm sure it could do with a few more batterings.
legendary
Activity: 2702
Merit: 4002
There is much evidence that the global financial crisis is possible, but currency fluctuations do not mean the flow of money to cryptocurrencies.
Many investments are still individual and the lack of organizational clarity makes institutional money unwilling to gamble on these future investments.
So the simple answer: Yes with very limited effect.
hero member
Activity: 2366
Merit: 793
Bitcoin = Financial freedom
With the sudden 700+ Point plunge of the Dow Jones and China's sudden devaluation of the Yuan what are some aspects of interest do you have that might reflect upon the current and the future of the Digital Currency Market?
I though deflation will occur on most of the countries due to price fall on USD value in the recent times and also they were printing more USD than actual rate which I read on an article on my local magazine.But 700 points is not huge to be considered as crisis this might due to some problem on China's economy surely it will get stable soon.
legendary
Activity: 2170
Merit: 1427
New financical crisis is coming unfortunately. And all of us should be ready for it. I dont sure that crypto is the best variant it may be affected too

It has been coming for years now according to people. It's impossible to know beforehand how long it will take before the house of cards collapses. It could easily take another 5-10 years with all the stimulations going on. The thing that we do know is that the longer they buy time with low interest rates and easing, the harder the world economy will be hit when the crisis finally commences.

It's going to be an interesting stress test for Bitcoin because we can't confidently assert that Bitcoin will benefit when everything goes down at the same time. Gold might not provide any help either. It may sound weird and a bit contradicting, but I do believe that the us dollar will be one of the more in-demand assets because of our bills, daily spending, taxes, debts, etc.
legendary
Activity: 3234
Merit: 5637
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It is bad times for stocks and fiat, but did you see any effect on Bitcoin price because of that? In my opinion the reason is very simple, people who lost money on stocks still consider Bitcoin a risky investment, and some of them just don't understand how Bitcoin is working, how and where to buy or how to keep it safe. Otherwise, they would not miss the opportunity to invest in something that is start 10 years ago, with no value at all, and today is worth over $10k per coin.

In time when we can read how Bitcoin is very risky investment, and that people should not invest in things like that - stock market is lost 1.4 trillion in just 4 days of trading which is 7 times more then Bitcoin market cap or 4 times more then whole cryptocurrency market cap.

So where does money end up in a time like this?

The monster bloodbath in stocks sparked a major flight-to-safety move. The 10-year Treasury yield plunged below 1.74% on Monday, its lowest level since November 2016 as investors flooded into Treasurys. In the meantime, gold hit its highest level since 2013.
sr. member
Activity: 2030
Merit: 356
With the sudden 700+ Point plunge of the Dow Jones and China's sudden devaluation of the Yuan what are some aspects of interest do you have that might reflect upon the current and the future of the Digital Currency Market?

The answer is very simple.
What do you do when the stock market is crashing and fiat currency is devalued with every passing day. You will invest in something which is stable and constantly grwoing. Bitcoin is the best investment. Its time Chinese sell the stocks and sell their Yuan to grab the bitcoins.
jr. member
Activity: 194
Merit: 8
New financical crisis is coming unfortunately. And all of us should be ready for it. I dont sure that crypto is the best variant it may be affected too
legendary
Activity: 3808
Merit: 1723
This has been discussed many times and since BTC was never active thru a global recession (it was actually created as a result of a recession) its hard to tell what will happen.

Yes you are correct that many will be buying Gold and they might also buy Bitcoin to hedge their money but keep in mind that generally in a recession people are risk-off. What risk-off means is that they buy stocks, indicies, which are a safe haven but produce low % rate of returns. So people might buy metals such as Gold and they might buy blue chip stocks instead of penny stocks. Bitcoin is considered a risk-on investment due to its volatility and might turn off most investors.

Especially since it took around a year for it to peak $20K and go down all the way to $3K. Many rather hold stocks thru a recession in that case.
legendary
Activity: 3080
Merit: 1500
With the sudden 700+ Point plunge of the Dow Jones and China's sudden devaluation of the Yuan what are some aspects of interest do you have that might reflect upon the current and the future of the Digital Currency Market?

There are major impacts in the crypto markets, I believe! Also there are major impacts on the precious metals market like Gold and Silver.because we are seeing an economic slowdown since the beginning of 2019 and traditional investors are slowly moving their money into precious metals like Gold and Silver For example, look at the below chart,



It shows the price of Gold per Kg since last 6 months and the trend is very clear. We will get similar kind of trend in the crypto market if we analyse because the mood for bitcoin and other cryptos are usually upward since 2019 beginning. But traditional investors will usually stay away from the crypto market because of the fluctuation in the price.

So the interest area for digital market is somewhat different when we compare it to the global slowdown or the devaluation of the currencies. In such scenario, people invest in gold because of capital protection. But at the same time, people invest in cryptos to make some aggressive profit who knows how to ride the tide! The same is happening here!

Aggressive investor + willingness to make some quick money amid global slowdown = Crypto investment flowing in
hero member
Activity: 2912
Merit: 541
Leading Crypto Sports Betting & Casino Platform
Sell your stock after raised profit only 10% or 5% and it enough for take back your money and invest on another altcoin kinds, doing my tips if not you lost chance get profit and lost your money.

Yeah, that will be a good solution to your money so you can invest in cryptocurrency and in the cryptocurrency, you can choose so many altcoins that will grow your money in another investment, and you can be able to make another money too. Soon, every people will open their eyes about the cryptocurrency, and they will realize that they can invest in cryptocurrency too besides of stock.
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