Post
Topic
Board Speculation
Re: Is Bitcoin the ultimate hedge against the upcoming financial crisis?
by
jackg
on 16/12/2018, 19:35:42 UTC
but bitcoin being what it is, has always been acting separate from any other market. for example when other markets are falling bitcoin has been rising in the past or vice versa. it always moves on its own and on top of  that being a global asset it doesn't take effects from local incidents that much.
so in my opinion in case of a financial crisis bitcoin would either not be affected at all or rise at least a little.

Bitcoin has existed only during a time when the overall markets were very bullish. Real estate, stocks, gold, and others have been in raging bull market ever since the recovery from the 2008 crash.

That's why I think it's dangerous to assume Bitcoin won't be affected by global market trends or financial crises. It's never experienced a major global downturn before.

This is what I've been thinking recently. We've never had Bitcoin in a financial crisis, companies dealing in Bitcoin still file for bankruptcy like all other companies. I think at some point we might end up with a gold/stocks sort of system when things are considered too huge to fail and then artificially proped up by a government somewhere.

Gold doesn't have inflation but when it leaves the vaults, it's inflated because its owner is no longer hodling if in its value and it becomes available to the open market. The same can happen to Bitcoin.