Bitcoin will be the best asset to hold in case of a recession, in my opinion. It is anti-inflationary, it is accessible, storing it is easy whether in a cold or a hot wallet. Anyone can afford to buy portions of it.
If Bitcoin is such a great investment, then why:- Is BTC underperforming gold this year?
Does Bitcoin crash by 80% every four years like clockwork?
Imagine what happens if BTC drops to $50K, and then $20K again. Please dont reply with never the chart history of Bitcoin clearly shows a pattern of massive drawdowns.
Being anti-inflationary means little if you're down 70% in a bear market. Let's not pretend it's a magical recession hedge when its still acting like a high-beta tech stock.
Oh gawd. You are living a seeming fantasy Alpen.
The BIG downs usually only happen after a BIG up, and it is also unusual to go far below the 200-WMA.. which is currently at $50.5k. Sure it can happen during a bear season, yet we are currently in a bull season. I will be willing to bet you that bitcoin does not get within 25% of the 200-WMA until at least after this calendar year, and so then the end of the calendar year may well have us with a 200-WMA right around $70k.
In the bear season we have usually not gone below the 200-WMA.. even though we did have from June 2022 until October 2023 with BTC spot prices spending a lot of time below the 200-WMA, and it had touched upon a record 35% below the 200-WMA in November 2022. There might be another bet in there, too, even though from my perspective, you seem to have a lot of fantasy (meaning unrealistic) ideas about downward BTC price possibilities, Alpen. You also seem to have had not enjoyed the greatness of BTC, either... but you have ONLY been registered on the forum since May, but you still seem to supposedly know so much about bitcoin.
Bitcoin will be the best asset to hold in case of a recession, in my opinion.
Bitcoin was created in 2009, which means bitcoin has never experienced a recession similar to the Great Recession of 2008.
When a recession occurs, unemployment increases, production and consumption decrease, GDP growth is negative, the economy stagnates, people's lives become extremely difficult...and history shows that speculative assets will be dumped and suffer heavy losses.
Bitcoin has never experienced a major recession, nor is it a true safe haven. So I'm skeptical to say that bitcoin will be the best asset to hold during a recession.
Hopefully you have some bitcoin, BALIK - especially since you have been around here since March 2016. You should know by now that bitcoin has been quite the performer through the years, and surely there is interest to see how it is going to perform under some kind of an actual recession. I doubt that there is reason to be skeptical, and actually if you had been even buying bitcoin modestly since 2016, you might have actually put yourself in a position to be prepared to have some bitcoin during whatever economic times might be in front of us... but instead, you will just have to suffer since you may well have had spent more than 9 years in bitcoin and still have not figured out how great it has been to hold bitcoin and how likely it is going to continue to be great to hold bitcoin, especially if we prepare in advance rather than just looking at some narrow short term bitcoin related matters that might not even be relevant in the whole scheme of things.
^ Yep, it's good when you have cash stocked up to live through said recession, otherwise - it's a bad time for you.
Good luck with that worthless cash.
Have you ever heard of bitcoin? Hope you got some of that.
Let us highlight the investors part. There are different kinds of assets you can invest in like gold, real estate and cryptocurrencies. Bitcoin will be the best asset to hold in case of a recession, in my opinion. It is anti-inflationary, it is accessible, storing it is easy whether in a cold or a hot wallet. Anyone can afford to buy portions of it.
These are assets you mentioned that are not the only ones available to investors. Gold has also proved to be a viable hedge against inflation. Real estate is also good but it is not a liquid asset. Bitcoin has its own risks, but it has also shown that it is one of the best assets in recent times. It is far better to keep your money in Bitcoin during inflation because fiat keeps on losing value.
In addition to the 3 types of assets that OP mentioned, government bonds are also a good asset that we should not ignore during economic recession.
Gold is definitely the best choice as it has proven its strength over thousands of years. But be careful with real estate, it is the safest investment but whether it performs well and can be a safe haven during a recession depends on the case. If lending rates remain high and people's incomes fall due to inflation during a recession, real estate prices may fall instead of rising like gold.
Finally, Bitcoin has proven its potential in the long term but for crises, recessions...I have never seen it perform well. We can invest for the long term but if we are looking for shelter in a recession, bitcoin is not the perfect choice.
If you look at bitcoin as compared with gold over the last 13-ish years, you should not be getting confused that your shiny rock has much if any chance as compared with bitcoin. Sure, gold has been doing well in the past 6 months, yet you should not be getting distracted by short-term noise when bitcoin is surely around 1,000x better than gold, yet it is merely about 1/9th golds current price (referring to market cap).
