I believe we'd get some percentage of residual money from a stock market crash.
When the stock market goes down, there is a strengthening of the USD which economists call a "flight to quality."
Bitcoin is an alternative to the dollar.
Topic: Would people pour their cash into bitcoin given a stock market crash? - page 2. (Read 8876 times)
June 30, 2014, 12:09:38 AM
June 29, 2014, 09:40:22 PM
A market crash is a destruction of wealth. In those times, most assets, especially volatile ones, will see a net outflow.
I keep hearing that term "destruction of wealth" like it's a real thing. It's more like a realization of actual wealth.
June 28, 2014, 09:28:43 PM
A market crash is a destruction of wealth. In those times, most assets, especially volatile ones, will see a net outflow.
I keep hearing that term "destruction of wealth" like it's a real thing. It's more like a realization of actual wealth.If the production cost is higher than market price, then the widget will slowly disappear.
June 28, 2014, 08:30:44 PM
A market crash is a destruction of wealth. In those times, most assets, especially volatile ones, will see a net outflow.
I keep hearing that term "destruction of wealth" like it's a real thing. It's more like a realization of actual wealth.
June 22, 2014, 09:37:27 AM
Deflation is not destruction anymore then creating inflation makes a nation richer. IF you really believe that you should have framed picture of Bernake and greenspan on your desk because they believe its real, they are the saviours of country just by expanding the monetary base.
A stock market crash unwinds values, mostly its a reflection of slower growth and possible earnings returns in future. Often you may find a company selling for 20 or 40 years earnings not because its expensive but they believe in just a few years the company might double its production so the real PE extrapolated out to five years might actually be 10PE.
If that process of estimation is incorrect then share prices come down but the value was never destroyed nor was it there created already, its an investment with multiple outcomes
The answer to the OP is yes. Share prices could over estimate company growth, bitcoin price could underestimate the worth of an online transaction system so on balance money could flow from one to the other.
Dollars themselves are the usual result of a share trade however with interest rates on trillions of debt nearing zero already, with the Federal reserve the main holder and returning that interest right back to government then dollar is easily overvalued possibly. Again on balance we can expect over-valuation to unwind, the sum total could be crash and a boom for bitcoin - if its useful
A stock market crash unwinds values, mostly its a reflection of slower growth and possible earnings returns in future. Often you may find a company selling for 20 or 40 years earnings not because its expensive but they believe in just a few years the company might double its production so the real PE extrapolated out to five years might actually be 10PE.
If that process of estimation is incorrect then share prices come down but the value was never destroyed nor was it there created already, its an investment with multiple outcomes
The answer to the OP is yes. Share prices could over estimate company growth, bitcoin price could underestimate the worth of an online transaction system so on balance money could flow from one to the other.
Dollars themselves are the usual result of a share trade however with interest rates on trillions of debt nearing zero already, with the Federal reserve the main holder and returning that interest right back to government then dollar is easily overvalued possibly. Again on balance we can expect over-valuation to unwind, the sum total could be crash and a boom for bitcoin - if its useful
June 21, 2014, 02:19:40 PM
A market crash is a destruction of wealth. In those times, most assets, especially volatile ones, will see a net outflow.
I keep hearing that term "destruction of wealth" like it's a real thing. It's more like a realization of actual wealth. June 21, 2014, 02:11:17 PM
A market crash is a destruction of wealth. In those times, most assets, especially volatile ones, will see a net outflow.
June 21, 2014, 01:36:02 PM
I think it's more likely that the cash would pour into bitcoin then people pouring all their money into Bitcoin. If things get that bad the average person will not have Bitcoin on the mine at all. Most likely will be looking for the bear necessitates I suppose.
Can you please clarify your post? It sounds like that you said two opposite things in terms of what would happen in the event of a stock market crash.
He wanted to say : I think it's more likely that the cash would pour into (OTHER THING THAN BITCOIN=exemple food) then people pouring all their money into Bitcoin. If things get that bad the average person will not have Bitcoin on the mine at all. Most likely will be looking for the bear necessitates I suppose.
I guess that would be true. People would likely not wish to take additional risks when they just lot a lot from taking risks
June 20, 2014, 04:04:03 AM
I think it's more likely that the cash would pour into bitcoin then people pouring all their money into Bitcoin. If things get that bad the average person will not have Bitcoin on the mine at all. Most likely will be looking for the bear necessitates I suppose.
Can you please clarify your post? It sounds like that you said two opposite things in terms of what would happen in the event of a stock market crash.
He wanted to say : I think it's more likely that the cash would pour into (OTHER THING THAN BITCOIN=exemple food) then people pouring all their money into Bitcoin. If things get that bad the average person will not have Bitcoin on the mine at all. Most likely will be looking for the bear necessitates I suppose.
June 17, 2014, 10:07:31 PM
I think it's more likely that the cash would pour into bitcoin then people pouring all their money into Bitcoin. If things get that bad the average person will not have Bitcoin on the mine at all. Most likely will be looking for the bear necessitates I suppose.
Can you please clarify your post? It sounds like that you said two opposite things in terms of what would happen in the event of a stock market crash.
June 17, 2014, 08:13:47 PM
I think it's more likely that the cash would pour into bitcoin then people pouring all their money into Bitcoin. If things get that bad the average person will not have Bitcoin on the mine at all. Most likely will be looking for the bear necessitates I suppose.
sr. member
Activity: 448
Merit: 250
It's Money 2.0| It’s gold for nerds | It's Bitcoin
June 16, 2014, 01:53:08 PM
Investors would have been burn so badly they will be not likely to trust someone else with their money.
Hard asset and cash on hand would be more likely asset investors want to hang onto.
Hard asset and cash on hand would be more likely asset investors want to hang onto.
Exactly!
After a stock market crash, investors will be very risk adverse and would not want to risk what funds they have left in something that is more risky then stocks.
People who will buy bitcoins or hold to them bitcoins would be people already interested by bitcoins
Gold is risky and volatile but in case of market crash or hyper inflation it is a safer asset for some so the price raises
People who buy bitcoin sometimes see it's potential as a possible currency but may have little interest in it.
Gold has long been a vehicle to hedge against inflation of any kind.
June 16, 2014, 07:33:13 AM
Investors would have been burn so badly they will be not likely to trust someone else with their money.
Hard asset and cash on hand would be more likely asset investors want to hang onto.
Hard asset and cash on hand would be more likely asset investors want to hang onto.
Exactly!
After a stock market crash, investors will be very risk adverse and would not want to risk what funds they have left in something that is more risky then stocks.
People who will buy bitcoins or hold to them bitcoins would be people already interested by bitcoins
Gold is risky and volatile but in case of market crash or hyper inflation it is a safer asset for some so the price raises
June 15, 2014, 10:33:08 PM
not at all. They would invest in gold if anything rather than Bitcoin. It's a better alt.
Bitcoin would likely suffer in the event of a stock market crash.
Maybe in 10 years when bitcoin is less risky will it's price rise when markets crash
sr. member
Activity: 448
Merit: 250
It's Money 2.0| It’s gold for nerds | It's Bitcoin
June 12, 2014, 10:58:12 PM
Investors would have been burn so badly they will be not likely to trust someone else with their money.
Hard asset and cash on hand would be more likely asset investors want to hang onto.
Hard asset and cash on hand would be more likely asset investors want to hang onto.
Exactly!
After a stock market crash, investors will be very risk adverse and would not want to risk what funds they have left in something that is more risky then stocks.
June 12, 2014, 01:36:37 PM
not at all. They would invest in gold if anything rather than Bitcoin. It's a better alt.
An asset going up doesn't mean an other one won't go up as well for similar reasons or other reasons
Bitcoin will look pretty good when the USD tanks and the US&UE debt are totally unstainable
June 12, 2014, 11:46:45 AM
not at all. They would invest in gold if anything rather than Bitcoin. It's a better alt.
June 12, 2014, 10:52:06 AM
It prett ymuch depends on how many stock owners know and understand bitcoin. If they all would understand it, than yes i think they would flock to bitcoin. But i really doubdt.
June 12, 2014, 09:31:19 AM
After a crash, it is too late, you've lost everything.
Whist a crash is happening though, it's possible but still not easy.
If you have no money in an exchange that sell bitcoin, the price point would be rather high.
I still think people would trust bitcoin more than a dead fiat or a dead stock even if bitcoin was $10 a piece, 100 years ago, $10 could buy you everything in a grocery store
Whist a crash is happening though, it's possible but still not easy.
If you have no money in an exchange that sell bitcoin, the price point would be rather high.
I still think people would trust bitcoin more than a dead fiat or a dead stock even if bitcoin was $10 a piece, 100 years ago, $10 could buy you everything in a grocery store
June 12, 2014, 07:28:01 AM
I'm a Gold miner and dealer, I came to Bitcoin, why?
Go back to November 2013 - The SCARE of a US Government shutdown is what was the main catalyst in that price rise. There's actually some hedge funds that work on the same level as Gold and many IRA sellers now offer Bitcoin to their client's portfolio. The death of the USD will affect the USA first and foremost. The Chinese Yuan or Euro which will likely replace the USD as world reserve is also one of the currencies most traded in Bitcoin; this means that if the USD loses its status, Bitcoin will use the next world reserve to price itself and related assets.
I sell gold and Bitcoin is more wanted than Gold because it can't be seized and large amounts can easily be hidden. One ton of gold is about 14 inches cubed but weighs about 1 ton (2,000 LBS). Yeah, try dragging that around with you. Even if Gold is a physical store of value, it's not efficient if you keep it at home because Gold is VERY heavy, one of the heaviest elements on the table (19.2x heavier than water). Even that ton is a mere $40M... Not necessarily a whole lot of money today. You can hide that same amount of money in your shoe on a SD card with bitcoin if you want.
During the $1,000 times people were flocking to Bitcoin because it was more readily available than anything else. Gold requires shipping and in times like those, vaults run dry quickly. During that same time, Gold was losing in value, Gold went up and went back down as fast as the government re-opened its doors but Bitcoin remained high until the Gox incident.
I own little Gold anymore (I have a claim anyways) other than a few nice nuggets but everything else I have is in Bitcoin. I know it will be easier to sell Bitcoin than it will be to sell gold; Bitcoin doesn't require shipping and is traded within an hour. When the Dollar dies, it will mean the big break for bitcoin because it will be the only readily available form of value transfer. There is too many "virtual" gold that if everyone cashed out at once, there would be a crash in the price of Gold itself... because if your gold is in a vault that won't ship it to you or you need to wait months, it's not worth anything.
There's a saying in Gold mining: If your Gold isn't in your pocket, your Gold is worthless.
The world isn't going to end when the dollar dies. People will find the most accessible way to exchange money. Bitcoin will be that readily available source of exchange because Gold reserves will be dry within an hour, cash withdrawals will either come to a halt or be shutdown.
What's you're looking at is a much harder to digest Cyprus, mostly for Americans who live the USD because most of the world no longer uses the USD to trade.... Pretty much, it's gonna suck for you if you live breath and sleep the USD and are unprepared. I'd be willing to bet the rest of the world will barely break a sweat. Most of the ASD death fear out there is driven from large Gold dealers. America is heading for a re-birth --> #Kondratiev Wave
Save your coin!
PS: During the last US governmental Gold confiscation, it wasn't even forced, only a few schmucks willingly surrendered their gold. For those who want to make sure, coins minted prior to 1933 cannot be confiscated but tyrants don't follow the rules to begin with.
Go back to November 2013 - The SCARE of a US Government shutdown is what was the main catalyst in that price rise. There's actually some hedge funds that work on the same level as Gold and many IRA sellers now offer Bitcoin to their client's portfolio. The death of the USD will affect the USA first and foremost. The Chinese Yuan or Euro which will likely replace the USD as world reserve is also one of the currencies most traded in Bitcoin; this means that if the USD loses its status, Bitcoin will use the next world reserve to price itself and related assets.
I sell gold and Bitcoin is more wanted than Gold because it can't be seized and large amounts can easily be hidden. One ton of gold is about 14 inches cubed but weighs about 1 ton (2,000 LBS). Yeah, try dragging that around with you. Even if Gold is a physical store of value, it's not efficient if you keep it at home because Gold is VERY heavy, one of the heaviest elements on the table (19.2x heavier than water). Even that ton is a mere $40M... Not necessarily a whole lot of money today. You can hide that same amount of money in your shoe on a SD card with bitcoin if you want.
During the $1,000 times people were flocking to Bitcoin because it was more readily available than anything else. Gold requires shipping and in times like those, vaults run dry quickly. During that same time, Gold was losing in value, Gold went up and went back down as fast as the government re-opened its doors but Bitcoin remained high until the Gox incident.
I own little Gold anymore (I have a claim anyways) other than a few nice nuggets but everything else I have is in Bitcoin. I know it will be easier to sell Bitcoin than it will be to sell gold; Bitcoin doesn't require shipping and is traded within an hour. When the Dollar dies, it will mean the big break for bitcoin because it will be the only readily available form of value transfer. There is too many "virtual" gold that if everyone cashed out at once, there would be a crash in the price of Gold itself... because if your gold is in a vault that won't ship it to you or you need to wait months, it's not worth anything.
There's a saying in Gold mining: If your Gold isn't in your pocket, your Gold is worthless.
The world isn't going to end when the dollar dies. People will find the most accessible way to exchange money. Bitcoin will be that readily available source of exchange because Gold reserves will be dry within an hour, cash withdrawals will either come to a halt or be shutdown.
What's you're looking at is a much harder to digest Cyprus, mostly for Americans who live the USD because most of the world no longer uses the USD to trade.... Pretty much, it's gonna suck for you if you live breath and sleep the USD and are unprepared. I'd be willing to bet the rest of the world will barely break a sweat. Most of the ASD death fear out there is driven from large Gold dealers. America is heading for a re-birth --> #Kondratiev Wave
Save your coin!
PS: During the last US governmental Gold confiscation, it wasn't even forced, only a few schmucks willingly surrendered their gold. For those who want to make sure, coins minted prior to 1933 cannot be confiscated but tyrants don't follow the rules to begin with.
Jump to: