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When the next recession strikes, people will attempt to liquidate their Bitcoin to pay their bills and find out that no one really wants to buy them.
by fnovd 9y ago
When the next recession strikes, people will attempt to liquidate their Bitcoin to pay their bills and find out that no one really wants to buy them.
- etr-strike 9y agoThere's two unknowns in this statement. 1) How does bitcoin behave during a recession and 2) What will the next recession look like? If the next recession takes the form of significant inflation -- resulting in effectively negative interest rates -- you will see flow into bitcoin. If the next recession is caused by significant defaults on debt, well, bitcoin is also the safe haven asset there. Bitcoin came into existence as a response to 2008. It's primary purpose is to protect peoples savings from central banks foolishness. I agree no one knows for sure what will happen. IMO, bitcoin is a reasonable hedge against the monetary policy we have today.