Post
Topic
Board Economics
Re: Financial crisis 2.0 - What will happen to bitcoin in the next crisis?
by
magneto
on 29/09/2019, 05:43:01 UTC
I wonder what will happen to bitcoin and the crypto market if there will be a financial crisis in the world (2008 style)

From one side people will probably look for 'safer' place to put their money in
on the other side, many people see crypto and bitcoin as a risky investment

I would like to hear the community opinions about what might happen to our market in a time of world economic crisis

It depends on the nature of the crisis. If it was to be hyperinflationary, then the answer would be simple - bitcoin, given its decentralised money supply, will hold its value far better than conventional fiat in that period of time. Especially when you consider the increased demand for it as a store of value.

If it was to be recessionary, e.g. a popping of a bubble, it could be hard to tell.

I suspect that people would initially rush to traditionally accepted safe havens, like T-bills, gold, etc. at a period of time where BTC value may dip slightly. But as time goes on, and investors recognise that bitcoin is really one of the best assets in storing value away from the fiat economy, demand will grow.