Hi, Up to now, Bitcoin hasn't gone through financial crisis. Maybe one financial crisis is near (look at financial market overvaluation) in case of financial crisis, bitcoin price could:
-collapse as big money people will withdraw from any investment,
-surge as BTC could be seen as an escape to current financial system
-remain stable
Do you think that in case of a major financial crisis like in 2008, bitcoin price will collapse, surge or remain stable? Thanks.
Last 2008, there was almost a catastrophic collapse of the global financial order due to the banking crisis in America (USA) and it could have spread to other countries had there been no remedies made via the costly bailouts of huge firms using taxpayers' money. The problem was highlighted and it was due to mismanagement and overexposure to risky investments.
Now, had Bitcoin been already existing at that time we could know for sure how the cryptocurrency could behave. Right now, an economic meltdown can be possible and if the main reason can be the same as in 2008, am sure that Bitcoin can stand as the best currency alternative to the fiat money backed by the government as there would be a clear contrast between the two.
A great financial crisis can make Bitcoin more mainstream because there would be a deluge of new investors into it knowing that Bitcoin is now considered to be the digital counterpart of the physical gold. And if the government would be using the same technique of quantitative easing (printing of more paper money) then we can see the big difference between the two and this is an area where Bitcoin can be winning and the fiat money waning.