Topic: How would a global recession affect cryptocurrencies? (Read 942 times)

Every investments option out there works hand in hand with the condition of the global economy and every business, even the volatile ones such as bitcoin thrives only when the world commerce is thriving. When the world is in global recession, it affects the force of demand and supply which controls every market

I'm not sure we ever had a global recession. Perhaps in ww2 as this was a disaster, but since then the world gdp was always positive. This time though we might see it. And everyone has an excuse ready, so there won't even be inquiries and research on what actually happened. All the problematic financial industries as the derivatives won't meet any new regulation restricting their inflation of the bubble and the problems will be passed to the next decade making the effect of a collapse ten times bigger.

Given that crypto is virtually "immune" to events in the mainstream world due to its decentralized design, a global recession will only prove to be beneficial to it than all the other way around. We've seen how Bitcoin quickly recovered in just a month since the downfall in market prices. While people have continued to "hoard" cash, this may not last for long. Governments are printing more money "than they could chew" leading towards massive inflation in the long term. Sooner or later, people will no longer trust the current monetary system paving the way for the exponential growth of crypto and Blockchain technology in general.

Let's face it. Crypto is here to stay no matter what. It's quite resilient enough to withstand negative events in the mainstream world. Bitcoin will be the new "digital Gold" of the world, surpassing real Gold in the not-so-distant future. With each global recession crypto will only become stronger. What crypto needs is massive adoption by merchants and businesses to be used in times of turmoil. Just my opinion

The fact of the matter is the stock market plays a big role in the pricing of cryptocurrencies.  Often the price of bitcoin coincides with the S&P 500 or the Dow Jones.  Bitcoin effects the pricing of alts in a very similar fashion.  A recession and subsequent drop in the markets means more than likely a drop in bitcoin pricing.

I know some people are seemingly rooting for a recession to help crypto, but I doubt it would be a positive. If people have less money in general, they have less money to spend/invest/gamble with.

This will not always be the choice of the people as most of the people will see more value to tangible things that they can trade such as Gold, Silver, and Bronze. Plus, these objects has utility value as it can be used to craft new things that are helpful.

That doesn't mean that bitcoin has no chance over tangible assets, bitcoin has value through its services such as fast transactions all over the world, transaction fees, and security.

It's really hard to transact using physical assets especially if who you are transacting with is outside of your country.

A global recession which seems very imminent upon the entire world will really give a boost into crypto industry and might even be the lighter to the long awaited bitcoin bull run. Traditional markets are failing and investing with them comes with a huge risk. I think people will prefer trying new opportunities and crypto investments will surely be a choice.

 Currently, due to pandemic we are witnessing a period of temporary economic decline during which trade and industrial activity are reduced which is generally generally identified by a fall in GDP. This pandemic has affected economy of the whole world but I think its effect on crypto would be minimal as BTC has already shown stability but cryptocurrencies always remained susceptible.

cryptocurrencies will be surely affected by the global recession and as it is emerging market it will be most affected

I think she has already influenced, but this is only the beginning! In the future, because of this, the cryptocurrency market may change very much, and most likely it will affect precisely altcoins.

I think that bitcoin exceeded the economic recession and proved to be stronger than many people think, many countries suffer from a deteriorating economy as a result of the economic recession, but bitcoin managed to weather the crisis, it is true that the price fell at some time to a low level, but it returned and rose quickly and this proves that the bitcoin is strong And he can withstand and return stronger than it was.
I think Bitcoin has gone through a lot of difficulties and crises in history but it has overcome all of these difficulties, there has often been a collapse of bitcoin and many expected that it will completely collapse but they all failed and Bitcoin returned stronger than it was.

Tensions within the US and China have definitely been positive for crypto. The pandemic had some negative impacts in its very beginnings, but now the tables have turned. All of this shows us that crypto is a resilient type of money that's "immune" to events in the mainstream world. Its decentralized design/model makes this a reality. I think that as more people lose trust in the traditional banking system, the better it'll be for crypto's adoption in the long run. This translates into higher prices across the market like never before. Those who've invested into crypto early, will be the ones that will benefit the most.

Thanks to COVID-19, the world is gradually shifting from the "physical era" to the "digital era". Jobs that used to require physical interaction, are now going online. On the other hand, e-commerce has been growing at an unprecedented rate. Since crypto is "digital money" it can be easily used by anyone in the online world without the need to comply with KYC/AML laws (ID verification). Credit/debit cards will still be in play. But since they're tied to the existing monetary system, they could go down the drain as governments debase the value of Fiat currencies. With more people becoming interested in crypto during these times of need, it's becoming evident that a global recession is more beneficial to crypto's mainstream adoption than anything else. Just my thoughts

Global recession is alot more defined as short term economic  meltdown, experienced and impacted to all over the world than depression. In particular, cryptocurrencies perhaps are very succeptible to any price changes in correlation to what happened lately during the first week of March after stocks and indexes historic price decrease. Consequently, bitcoin plummeted in behalf of the economy's  general market movement.

However, we are not always entitled to our own belief that it will always be the rest of the crypto industry be affected with recession. Take a look a the trade war between US and China, cryptocurrency benefited from it. It cast more volumes of traders transferring their holdings on bitcoin and their cryptos than stacking low price stocks.

In a recession, I believe most people agree that in the long term cryptocurrencies will go up in relation to fiat currencies. The problem is what is going to happen in the short term, once the recession kicks in. Crypto is regarded as a high risk investment, this type of assets are the first to suffer investment retraction in a recession. When fear settles in, there is no confidence in the market to allocate funds to high risk investments so they fall.

With every pandemic, comes a global recession. This is normal, as a result of fear among people in the mainstream world. Stocks, precious metals, and even crypto have experienced a massive decline in price across the market like never before. It's common for anyone to cash out their assets for Fiat in times of need. No matter how rare an asset is, if people are selling it more than what they're buying, prices will go down the drain. I'd expect crypto to be different though, since it's decentralized and free from the grasp of governments and central banks worldwide. It's a "safe-haven" asset in the sense, that your money is yours forever on crypto. That's not the case with Fiat, or even Gold. The latter can be easily confiscated by a government, or manipulated at will. In the case of crypto, it's almost impossible to take over the entire system depending on how strong its network is. Bitcoin is known to be the most secure cryptocurrency to-date, so it'll be very costly to disrupt the entire blockchain network anytime soon.

As governments worldwide continue to inflate their currencies, people will begin to lose trust in the world's banking system. It'll be a matter of time before people flock into crypto because of its decentralized and censorship-resistant properties. A global recession could be more beneficial than harmful for the adoption of crypto, as it's entirely independent from third-party manipulation. This gives crypto a neutral stance relative to other types of currencies and commodities, making it the top choice for conducting transactions when all else fails. But who knows? We're still in a period of certainty both in crypto land and in the mainstream world. Crypto could either experience a boost in adoption from everyday people or all the other way around. The best you could do is diversify into both Fiat and crypto to protect yourself against a massive downfall in the entire market. Just my opinion

Half of the cryptocurrencies will get wiped out if the market continues to perform like this. Only few will survive. I am sure that the firs 100 listed on CMC will easily make it through.

I do not think the market will rise anytime soon. An answer to this virus needs to come out fast I mean a vaccine.

Now we can slowly answer this question because we are on a market recession but the cryptomarket is not moving significantly and we are still retesting the support and resistance level. Many believes that bitcoin will be the best option during the market recession, this is gonna be the first time for bitcoin and hopefully to see a positive effect to bitcoin.

I do not believe this your statement to be true. bitcoin price now and before the global COVID19 pandemic started is relatively not a wide gap. In fact, at the end of 2019, the price of bitcoin was around 6k and presently it is above this. people have been coming with different theories on how the pandemic has affected the price but very few are talking about what propels the current rise in BTC price

As the crisis continue to emerge, we have not seen the worst of scenario yet. Pandemics could really trigger the recession that will make most of us suffer, however the high recovery from the origin place of outbreak gives every one a hope to cure the virus as soon as possible. The economy is seen declining even last year, about June, what the covid19 did is to make it more complicated to handle.

Referring to great recession that we had in 2008, it was not cause by a pandemic but a poor money management unseen by the leaders. But I must agree, if we are looking for alternative, the best one to have is the cryptocurrency.

The only running here on our country is the company who offers essential goods but the other are totally close down and its really hard for our economy to get back in shape and for sure this will take long years to recover. But actually what good thing is happening right now is we see the price of bitcoin fighting up so meaning this is a good sign for bitcoins to rise up even if it suffer from major dump due to the economic recession happened this year.

And its really a good time for long term holder to avail cheap bitcoins since when the pandemic ends and all lockdowns will be lifted for sure we can see a good pumps.