You may have noticed that I have been MIA for the past few weeks, but fear not, I am still hanging around although very busy! It is widely accepted that Satoshi was unhappy with the economic situation at the time centralized financial institutions, bank bail-outs, etc.
In a follow-up post, I will discuss what will happen to Cryptocurrencies, as a whole, in such event. A market crash, and subsequently a financial crisis, occurs when piling on this debt is no longer sustainable and everything comes crumbling down like a house of cards. In order to back this post with facts, I would like to list below the different assets, used in the charts that follow, alongside a brief description and the reason behind their selection.
However, not all bonds are made equal. This ETF consists of U. S Treasury Bonds which have a very good credit rating. The 3 charts below with different timeframes , show a snapshot of the asset percentage change over a period of years which I will be referring to in the following sections.
It shares a number of characteristics with gold, such as:. Having the above in mind, one could argue that, Bitcoin could perform, as well as, or even better than gold once we get into murky waters. If I still have your attention, please leave a comment and let me know what else you would like to see me writing about. You can find links to my social media and sign up to my newsletter below. Disclaimer: All information and data on this blog post is for informational purposes only. My opinions are my own.
I do not provide personal investment advice and I am not a qualified licensed investment advisor. I make no representations as to the accuracy, completeness, suitability, or validity, of any information. I will not be liable for any errors, omissions, or any losses, or damages arising from its display or use.
All information is provided as is with no warranties and confers no rights. Ermos Kyriakides ermos. Tweet This. In a financial crisis, asset prices see a steep decline in value, businesses and consumers are unable to pay their debts and financial institutions experience liquidity shortages. A financial crisis is often associated with a panic or a bank run where investors sell off assets or withdraw money from savings accounts because they fear that the value of those assets will drop if they remain in a financial institution.
A financial crisis can occur if institutions or assets are overvalued, and it can be exacerbated by irrational investor behavior.
A rapid string of selloffs can further result in lower asset prices or more savings withdrawals. If left unchecked, a crisis can cause an economy to go into a recession or depression.
Research Data In order to back this post with facts, I would like to list below the different assets, used in the charts that follow, alongside a brief description and the reason behind their selection.
Gold quoted in US Dollars, which is the common yardstick for measuring the value of Gold across the world. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of stocks representing all major industries. The index was developed with a base level of 10 for the —43 base period. It has high potential for growth, but also high risk; share value may swing up and down more than that of stock funds that invest in developed countries, including the United States.
Treasury bonds with remaining maturities greater than twenty years. The charts The 3 charts below with different timeframes , show a snapshot of the asset percentage change over a period of years which I will be referring to in the following sections.
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if stock market crashes, what happens to housing market?
Whenever a person buys a bitcoin or any other cryptocurrency, basically you are investing in a market known as the crypto market. Most of the people think that there must be a relation between the current trend of other markets such as the stock market on the crypto market. And if it so, one must be worried about what will happen to the crypto market if the stock market collapse. Also, before that, one must foresee the chances of the stock market to be crashed in the upcoming years. Well, in this article we will discuss two things which are anyhow interconnected to each. The first phenomenon that we are going to discuss is the collapse of the stock market in Is it going to happen and what are the chances of the stock market crash in ?
Why Bitcoin and Gold prices go up when traditional markets are shaky? Traditional stock markets historically undergo a cycle of climbing and crashing with minor corrections in between, the last major crash being between and More and more people are looking outside of the traditional stock markets to keep their money, turning to crypto as a more reliable investment for the future, but also as a safer alternative to traditional currency. Never the less, how does the stock market behavior, in particular stock market crashes, affect bitcoin and other forms of currency? This seems to be applying to crypto as well.
Is the Bitcoin and Stock Market Crash Related?
Bitcoin & Gold - how people are protecting themselves from stock market crashes
Thank you for reading the article. No more than one email per week. Pricing options : Bear market has killed a million dreams in the crypto space. Big multinational banks repackaged these loans into derivative instruments and sold them to investors, who propagated these sales through different parts of the economy. They also support Adjusted Basis method for Canada taxpayers. A few years ago, lesser number of exchanges were focused around Bitcoin, but the adoption rate has increased with time. Diversifying your investments is one of the key principles of low-risk financial management and the same goes for your retirement plans. Share Tweet. There is also another option to identify specific coins for specific transactions but that requires meticulous documentation. Although this addition may create controversies for some time, these new tools and products are expected to enhance the flow of Bitcoin in the market. That said, it will be some time before their utility is source within mainstream applications.