I think it's important to consider what impact the recession that's upcoming will have on Bitcoin.
Bitcoin has never been through a recession, and so we don't know how owners of and investors in Bitcoin will react.
My thinking is as follows:
1. Retail investors by and large, will need to sell/spend their Bitcoin to pay their expenses and suppor themselves through the recession. So this could cause a dip in the price and a lessening in demand throughout the period.
2. Institutional investors may well choose to sell Bitcoin during the recession, in order to move funds into less volatile assets such as Gold.
3. Wales will likely hold their Bitcoin, and even pick up additional Bitcoin during any dips in the price, believing that Bitcoin will outlast the recession and will be far more valuable within the next 5, 10, and 15 years.
4. There won't be any parabolic rises seen in Bitcoin as a result of FOMO after the halving. This requires retail investors who have excess cash, or access to cheap credit, both of which are lacking during recessions.
How do you think the recession will affect Bitcoin?
Bitcoin has never been through a recession, and so we don't know how owners of and investors in Bitcoin will react.
My thinking is as follows:
1. Retail investors by and large, will need to sell/spend their Bitcoin to pay their expenses and suppor themselves through the recession. So this could cause a dip in the price and a lessening in demand throughout the period.
2. Institutional investors may well choose to sell Bitcoin during the recession, in order to move funds into less volatile assets such as Gold.
3. Wales will likely hold their Bitcoin, and even pick up additional Bitcoin during any dips in the price, believing that Bitcoin will outlast the recession and will be far more valuable within the next 5, 10, and 15 years.
4. There won't be any parabolic rises seen in Bitcoin as a result of FOMO after the halving. This requires retail investors who have excess cash, or access to cheap credit, both of which are lacking during recessions.
How do you think the recession will affect Bitcoin?
Dude, I think you are at correct path. I think you draw those scenarios and they are really close to what might happen with bitcoin. What path would be chosen, depend on God only
I think how strong recession would be, depends how investors and ordinary citizens would do with their investments in bitcoin.
The powerful recession would be, the smaller amount of bitcoins on hands remains.. and lower the price would be .. imo.