When saything price crash, people are still unconsiously using fiat money as a standard to measure value, this is the major reason that bitcoin can not become a safe-haven asset
Now some people even say that the machine that makes surgical masks has become the money printing machine, means that medical supplies has become the safe-haven asset, but they still use fiat money to measure value
So I think the key is to let people to use bitcoin to measure value, that will make quite big difference, otherwise, always a slave of fiat currency
Now some people even say that the machine that makes surgical masks has become the money printing machine, means that medical supplies has become the safe-haven asset, but they still use fiat money to measure value
So I think the key is to let people to use bitcoin to measure value, that will make quite big difference, otherwise, always a slave of fiat currency
Exactly. As long as Bitcoin is measured against Fiat, it'll never be able to achieve independency from the existent monetary system. By design, Bitcoin is deflationary so it's meant to be used as a store of value. But in a world where people are focused on the money than anything else, selling Bitcoin for Fiat has been the usual trend since it became traded on exchanges worldwide. It's no secret that the number of merchants and businesses accepting Fiat are far greater than those who accept Bitcoin as payment. In a world of chaos, people will simply resort to using what's widely accepted in the mainstream world. It's clear that Fiat is the true winner when it comes to sending/receiving payments in times of need. Physical cash proves to be convenient for emergency situations like the ones we're experiencing right now.
Despite this, the crypto market is still small compared to other markets on the mainstream world. The small liquidity, lack of regulation, among other factors negatively affect Bitcoin's price across the market once undesired events happen worldwide. The pioneer cryptocurrency is still in its infancy so it may take quite a long time before we'll be able to see people using it as a "safe-haven" asset in the mainstream world. Sooner or later, the banking system might collapse leading many people towards decentralized finance. It's the way of the future, where people can put their trust on a system backed by mathematics and cryptography instead of a central authority prone to corruption, fraud, and instability. But ultimately, time will tell us what lies ahead for Bitcoin as people either use it as a store of value or all the other way around.
people still have overwhelming confidence in fiat currencies. this confidence was temporarily shaken in 2008 but liquidity injections managed to sustain the system.
it's gonna take something drastic like a full blown USD default to break that confidence and change the current paradigm. when that finally happens (could be decades from now), assets like gold and bitcoin could become units of account, which would reinforce them as stores of value.
until that day comes..... Recession Rule #1: Cash Is King
it's gonna take something drastic like a full blown USD default to break that confidence and change the current paradigm. when that finally happens (could be decades from now), assets like gold and bitcoin could become units of account, which would reinforce them as stores of value.
until that day comes..... Recession Rule #1: Cash Is King
Agree. We should give Bitcoin some time, as it's still not mature enough for mainstream use. The crypto market is still small compared to other markets, as the space is still at an ever-growing rate. Once the traditional banking system collapses (the Fed), you could expect people to use Bitcoin and even Gold more thoroughly as a store of value. As long as people trust Fiat more than anything else, I don't see Bitcoin or other cryptocurrencies going anywhere. We all know that crypto provides more benefits than Fiat itself. While prices are still volatile, I believe the market will stabilize once it's able to achieve ample regulation (and greater liquidity) worldwide.
Despite the dip in price, Bitcoin has still managed to retain its value after all these years. It hasn't gone to zero, so that's a good sign. With the upcoming halving event, it's expected that people would buy more BTC than they'll ever sell across the market. But no one can ultimately predict what Bitcoin's price will be in the future. Hopefully, Bitcoin would prove to be a great safe-haven asset as more people become aware of it over time. Just my thoughts
