Re: Financial crisis 2.0 - What will happen to bitcoin in the next crisis?
I think people will sell the coins and use the money to buy gold. When a crisis or recession comes, people tend to buy more gold and hoard it for a few years. Because the price of gold is always stable and always increases when the economies of some big countries have problems.
As for bitcoin, I don't think so many investors believe it.
Although Bitcoin has a deflationary mechanism, its value is being decided by the market. And when the crisis came, you knew what was going to happen
The reason why bitcoin will be better than gold when it comes to profit is that dollar will lose value, and when dollar loses value, it will make the fiat cost of purchasing one bitcoin to be very cheap, which people can accumulate ahead of when the financial crisis will be over, when the financial crisis is over, definitely the value of dollar will appreciate also, and this means there will be enough profit for those that purchases bitcoin during the financial crisis. As for bitcoin, I don't think so many investors believe it.
Although Bitcoin has a deflationary mechanism, its value is being decided by the market. And when the crisis came, you knew what was going to happen
Gold is also good but, the increase in gold can never be as high as the increase that you will get from bitcoin, the volatility of bitcoin create a very huge gap for people to be able to make huge profit while gold does not give that chance. The only difference between bitcoin and the gold is that gold is less risky.