Topic: Would people pour their cash into bitcoin given a stock market crash? - page 6. (Read 8895 times)

In nominal values yes the us stocks will go up and some us companies are going to do well in the new world but the USD will collapse, Yellen is going to increase QE when it gets tough

Stock market crash will drive investors into gold, bonds, debentures... because they want a safe and liquid investment. Bitcoin is too volatile to qualify as a save investment. Besides they are so many other global equities to choose from, even if they would consider bitcoin, it is way down the list.

Next crash won't be epic. It will be a minor dip. And then the market will recover and go on its merry way again. There's too much money, too much liquidity being put into reserves in the banks, at least in the US. Where the US goes, the world will follow. You can't deny it.

Your're writing like a witness of the apocalypse...

But I couldn't agree more. The next crash will be of epic proportions. But I still think life will go on after the dust has settled (years or decades).

^martingale the dog jones! LOLOLOLLL =)

"Stockmarket crash" is a nice tidy term that public can fathom but doesn't even scratch the surface when describing most financial crises.

Autumn 2007 was when the market for MBS, CDO's and other exotic housing derivatives froze up (remember the "credit crunch" is well contained propaganda ~ H. Paulson?). That precipitated a general crisis of confidence in all money markets that felled Bear Stearns in Spring '08 and crisis festered on until the stockmarkets finally collapsed, money markets funds stopped paying $1-$1 and ATM's were rumoured to have been hours away from shutting down in Autumn '08 ... whilst Lehman Brothers bellied up and all the major banks were basically shown to be trading whilst insolvent (they changed the laws around GAAP to stop them being criminally prosecuted for doing so).

Long story short, the next crisis will not be just a simple "stock market" crash. The entire global monetary system is so intertwined now with the risk being more concentrated, with centralisation of debt and leverage on the central bank balance sheets and consolidation of assets into fewer mega trading banks, that the monetary system as a whole will just freeze up in its entirety. The state of the stock market will be an addendum to the whole sorry saga. It may take a few days, weeks or maybe it will struggle on for a month or so, but if this puppy goes down now, it is not getting back up. The Martingale game being played out by the banksters since Greenspan begun the run by doubling down in 1987 has reached the ultimate conclusion ... the next bet is for all the marbles, the global monetary system has been bet on red, and it is only a matter of time before fate throws up a black.

I'd agree with that, but saying cryptocurrency wouldn't "survive" is an overstatement.   Cryptocurrency's value depends on utility in commerce, and it would suffer during an economic downturn, but to assume that the need for it would disappear entirely doesn't seem probable.

Could you offer a bit more "proof?"
Cryptocurrency won't survive.
Why not?

pobably yes, same as gold price crash

This is reasonable.


This is reasonable - at least temporarily, because stocks are sold against cash. Longer term I'm not so sure because of inflationary monetary policy.


This seems not reasonable. I mean, why? Cryptocurrencies will not die without a reason that affects them. A stock market crash does not affect them, because cryptocurrencies are a totally different asset class.

A stock market crash is not the end of the world (only for some people that lose more funds than they can cope with).

If the stock market crashes, gold and US$ will be king. There will be massive rush to convert everything into gold and cash. Cryptocurrency won't survive.

These crash predictions based on hypothetical chart analogy are plain BS. I'm not saying there won't be a crash - indeed stock valuations are high - but this has nothing to do with selectively picking a single time period (out of a ton of periods that would fit equally well) just to justify a crash prediction. Every uptrend will end someday.

So will people pour their cash into bitcoin if there is a stock market crash? I'd say it's possible, but most of them will do it after they already have lost most of their investment so it won't matter much.

My present strategy is to short IWM, and roll the gains into BTC.
It's working well so far, and I expect it work incredibly well in the future.

SF Fed report tells me that PEs go to 8 by 2024.
BTC ETPs go live in 2015.

I think there would be some people that would buy bitcoin in a stock market crash assuming it's not crashing also. This would bring the price up, which might excite people bringing the price even higher.

This brings up the more relevant question - will bitcoin follow the stock market, or act as a commodity similar to gold and go in the opposite direction?

If you regularly predict something's going to crash , you are bound to be correct sometimes.

The two graphs are dissimilar; two bubbles are clearly visible in the 1982 line before it dipped back to pre-bubble levels. A crash would be sub-bear market levels.

However, Bitcoin actually does resemble the nasdaq composite only repeated many times over, each iteration 10 times bigger than the last. A terrace effect if you will.

The market hit 420 USD/BTC and the bears wondered off in search of food and sleep.

10k USD/BTC (~1/10th of a % of the global currency cap.) in August without the USD crashing is my bullish prediction.

Then, a horrendous "crash" "the end of Bitcoin" they'll say as it dips back to 4.5K USD/BTC.

Edit 10 April 2014:

Looks like I fail at predicting the market

BTC @ $350 and continuing fall. The bears are out in force today.

I guess 1987 get very popular now thanks to Wolf of wallstreet

You should probably not look to USA today for your business news. Or any news, really.

Everything gets sold off in a market crash. Even profitable investments. People liquidate their winners to pay for losses on other investments.

sell stocks at the high and buy bitcoins at 50% discount