Cryptos as a hedge against the Stock Market

in cryptocurrency •  7 years ago 

Recently volatility in the stock market seems to indicate a risk of stocks heading to a bear market. What impact might that have on Crypto. I think outside of mass adoption something that would allow Cryptos to grow from this point is a reputation as a store of value that exits outside the mainstream financial system.

2008 wiped out many people's retirement plans and created a mistrust of the financial system on main st, the current volatility could see a repeat of that, with one exception - the existence of cryptocurrencies as a hedge against the market.

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People gotta look at history. There are many significant drops in the stock market but it ALWAYS rebounds. We have been in one of the longest bull streaks ever. Cryptos are younger, but subject to the same stresses the stock market has cause the investors are still people. It will be interesting to see if there is an inverse correlation between the two that grows over time or whether they will just mirror each other. Cryptos just gives me more acid reflux cause it never has any down time :D

that's a good point, wondering if the relationship between the two will de-couple or continue to move along the same lines

bumping this as I feel this post and idea is still relevant if not more relevant on a day like today