We have not seen this situation. Since Bitcoin was born, the markets have taken off. Introduced during the last financial crisis, the life of Bitcoin has only known the upward direction.
In this video I discuss how we are likely seeing tougher economic times ahead. How will Bitcoin and other cryptocurrencies perform?
▶️ 3Speak
What do you consider a bear market exactly? We did see it during some crashes this last year or so. And BTC has seemed to correlate with the markets more often than not. Especially since they're becoming more and more intertwined.
However, I do expect this to change eventually.
That is true it did. However, we saw it short lived which is always possible. But a bear that I am thinking is a drop of more than 20%, in a few different markets.
I do too especially as it becomes evident that inflation is not causing the recession, but deflation.
This is where I think the narrative for BTC changes but the results are upward.
It could then serve as a safe haven.
Posted Using LeoFinance Beta
Yeah we will see. We already see it happening in smaller 3rd world countries. Where people would rather put their money into BTC to avoid the devaluing of their currencies.
I think that's where we will see a large transition first. It will be in these smaller economies with unstable money.
I think the world economy may come out of the recession faster i.e. the economy will reorganize itself faster than previously because we live in a more connected and automated world where information moves much more quickly than ever before.
Posted Using LeoFinance Beta
That is true. The challenge is we have debt levels we never saw before. Plus with the concerted effort to close down the global economy...PLUS the lack of debt clearing the last decade.
It will be interesting to see.
Posted Using LeoFinance Beta
The lack of debt clearing is quite concerning. The possibility of endless money printing makes it possible to kick the can endlessly with structural problems mounting without bound.
Posted Using LeoFinance Beta
Basically I've never shilled BTC because of the inflation, i tend to tell my Nigerian friends that they can store Money in BTC to beat the constant devaluation of our nation's currency by excessive inflation and that's something that's tend to thrill them. Having a way off the mess of our currency
Posted Using LeoFinance Beta
In your country, as well as Venezuela, the inflation aspects is extremely valid. Hard to argue what you all deal with concerning your native currency.
Posted Using LeoFinance Beta
It's extremely crazy, I mean people wouldn't even hear that btc is volatile they just want to buy it to escape from the madness of the naira, it's something that scares people, having their money become worthless to them .
Posted Using LeoFinance Beta
Bitcoin will do great in the bear market. Everyone tries to say that Bitcoin is correlated to the legacy economy because they're looking at it on the short term. Given one or more years of bear market will show the true hedge that Bitcoin and crypto truly are.
Of course as soon as the legacy economy realizes this is likely when we see the biggest bubble in human history. Such small market caps could never stabilize fast enough to accommodate all those rats trying to abandon the sinking ship. The scaling/liquidity problem is real.
Posted Using LeoFinance Beta
Congratulations @taskmaster4450! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPTo support your work, I also upvoted your post!
Do not miss the last post from @hivebuzz:
Go Bitcoin! And hoping that hive goes up too!!!
All the shit being done by the FED and other people with power, desperate need for new ways of organizing our socio-economical life. The old system is just rotten to its core and it takes some time to see that and dismantle. In the long term, I'm super bullish on crypto assets. It'll start soon.
Posted Using LeoFinance Beta
I guess bear market will damp all sentiments and Bitcoin is also a financial tool will be tanked with it. It will survive and gain more userbase too.
Posted Using LeoFinance Beta
Summary:
In this video, Task delves into the topic of cryptocurrency in a bear market, specifically focusing on the effects of the global economic downturn on digital currencies. Task highlights the changing financial landscape, the impact of central bank digital currencies (CBDCs) on traditional banking systems, and the potential role of cryptocurrency as a disruptive force during economic crises. He discusses the historical correlations between Bitcoin and traditional markets like the S&P, as well as the increasing institutional interest in Bitcoin. Task predicts that cryptocurrency, particularly Bitcoin, may thrive in the face of economic turmoil due to its disruptive nature and potential advantages over traditional financial systems.
Detailed Article:
Task starts by emphasizing the unprecedented circumstances of a global bear market that extends beyond just cryptocurrencies, pointing out the unknown territory that digital assets face in such an environment. Drawing parallels to the birth of Bitcoin amidst the last financial collapse, he reflects on the missed opportunity for "cleansing" back then due to massive money printing and bailouts.
The discussion shifts to the role of CBDCs and their potential to disrupt traditional banking systems. Task predicts that CBDCs could significantly reduce the need for local banks, leading to challenges for the commercial banking sector. He also mentions the impact of FinTech and online lenders on traditional banking services like loans and mortgage origination.
Task brings attention to the increasing global debt, the dominance of information technology in the economy, and the demographic shifts affecting different regions. He narrates how the COVID-19 pandemic acted as a wake-up call, causing economic slowdowns and subsequent rebounds through massive stimulus measures.
The conversation then focuses on Bitcoin's resilience amidst market turbulence, institutional interest in Bitcoin, and the possible future scenarios for cryptocurrency. Task explores the potential for Bitcoin to act as a safe haven asset and discusses the differences between Bitcoin and gold's performance during market crises. He underlines the entry of significant institutions like MicroStrategy into the cryptocurrency space and the likelihood of wealthy investors following suit.
Task speculates on the future of cryptocurrency during market downturns, highlighting its disruptive potential compared to traditional financial systems. He indicates that during recessions, disruptive technologies like cryptocurrency often gain market share by offering cost-efficiency and better products. Task anticipates increased adoption of cryptocurrency and blockchain technology during economic crises, as they present alternatives to legacy systems struggling to survive.
In conclusion, Task asserts his belief in the resilience and growth potential of cryptocurrency during economic downturns, citing the disruptive nature and inherent advantages of digital assets over traditional financial systems. He ends on an optimistic note, implying that cryptocurrency, particularly Bitcoin, may thrive and establish itself further in the face of global economic challenges.