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Here’s why Bitcoin might be safe from a global stock market crisis

Here’s why Bitcoin might be safe from a global stock market crisis



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9 Comments

  1. If the markets melt down btc and crypto will fall fast. Ppl move to safety in economic crisis and highly volatile luxury assets are first to go imo. I don’t see stocks and market crashing and people running to Bitcoin. I think it’s too early most ppl wouldn’t entertain that idea imo. Maybe in the future however a banking or market crisis could lead the transition to btc as a world currency. I just feel not yet bc most ppl aren’t there yet. I’m done. Lol

  2. Hmmm I see the authors point. But in a collapse everything falls. Margin calls need to be covered by selling anything they have. Bitcoin probably will too. But like gold it’s recovery will be quicker than the other markets.

  3. tldr; Bitcoin’s lack of integration with traditional finance and its inability to be forcefully sold to cover financial losses mean the price might not ‘collapse’ if there is a global stock market meltdown. However, the cryptocurrency has an edge over traditional markets like commercial real estate, stocks, and bonds. Until Bitcoin becomes fully entrenched in financial markets and accepted as collateral, the mid-term systemic risk for the cryptocurrency is lower than the traditional market.

    *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

  4. A different thought experiment…

    Scenario A) market rapid 20% “crash” (over weeks, in nominal price)

    Scenario B) market steady 20% devaluation (over years, in real price) half of which is inflationary

    In scenario B, Bitcoin remains robust… because the psychological shock doesnt scare hodlers into cash

    I think Scenario B is occurring as we speak… and does not require Scenario A to occur

What do you think?

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