Hi Everyone,
There has been something on my mind for last couple of weeks and that is:
Is Bitcoin going to be the best hedge in the upcoming financial crisis?
Let's assume for a while that the financial crisis will break wide open in either late 2019 or at latest early 2020 - we live in everything bubble era.
What do you believe will be the ultimate hedge and why do you think that?
In 2008 crisis it was US treasuries and gold as it rose sharply in 2009, 2010 up to 2011 I don't think that would be the case this time as the mobility matters more and more.
I can't speak for US treasuries as I don't understand them that much let alone understand why would anyone invest in anything that does not even cover (real) inflation which in my opinion is about 7 - 10 % per year depending on where you live and things you buy.
In my opinion it will be Bitcoin (BTC) as it's the oldest, largest crypto with the largest hashing power behind it.
I would appreciate your comments and opinions.
I believe that people do consider it to be a good hedge, let's take the example of the Asian country India. Two years ago there was demonitisation in their country, and suddenly everyone bought bitcoins to hedge their looses and it's pertinent to note that bitcoins began to sell at a premium there. I believe bitcoins has become popular all over the globe, and gold shine has worn off as it's illiquid at times, hence I believe bitcoins can be used to hedge against the finicial crisis if it happens.