Just like gold, in fact, during a recession and bank failures Bitcoin may just perform very well, because it has limited quantity, it is decentralized, and it is relatively decorrelating from traditional financial markets.
This question is not appropriate because Bitcoin was created and has proven itself in the midst of extraordinary economic problems that made people distrust the existing system at that time and until now Bitcoin still holds its value unchanged. What people fear about economic collapse is the decline in the value of the currency and again I say Bitcoin is able to maintain that which we call the best hedge.
Agreed. The statement is not quite right, even if we look again bitcoin was born because of the economic uncertainty at that time. On the other hand, we have seen during the pandemic a few years ago, all other assets experienced a decline but not bitcoin, in fact at that time bitcoin actually increased. And yes, as you said now bitcoin is a good hedge, so no matter how turbulent the global economy is, bitcoin will survive.
In the short term there may be a little impact, but only for a while, but after that bitcoin will stabilize and even increase. This has happened to bitcoin several times when the economy was not doing well, but it did not have a bad impact on bitcoin. In fact, every economic downturn/collapse brings with it the same market opportunities if you have the right information and equipment, so you should take advantage of the opportunity to accumulate bitcoin in the midst of an economic crisis, and if you do it easily. Obviously a bubble/collapse will take you to a rich place.