- BTC operates independent of governments, central banks
For now...
Agreed on all points so far.
Looking at 2 scenarios, how will BTC react:
1) Massive economic shock / recession / stock market downturn
Would Bitcoin also see a large selloff as the old 'sell what you can, not what you want' meme is lived out?
Are enough people invested in BTC also heavily invested in the stock market, where a stock margin call would lead to a large dumping of BTC?
Would an initial dip be followed by a massive rise in this case (ala gold in 2008)
Would BTC be seen as a safe haven asset and see a tremendous inflow in during this kind of event? (seems possible based on Brexit, Trump).
2) Crack up boom. Dow hits 40,000 etc
Will this see Bitcoin also rise, as in all boats get floated?
Does BTC see its relevance wane, as the good times are here again?
In a shock, yes I see Bitcoin and crypto being liquidated to some extent. High volatility suggests the swings will be greater.
Also yes in regard to aligning with equities - crypto has aspects of both currency and equities, so it seems very likely that it will perform as such.