Topic: How would a global recession affect cryptocurrencies? - page 2. (Read 942 times)

We are going to suffer it even without the corona virus, the economy of european countries and USA is already declining even before the corona virus has discovered and spread. I don't believe that the main reason for us to suffer recession is the pandemic,  the corona virus just make it severe enough that we might suffer it sooner or later, in the next 5 years or so.

The world is facing a great enemy now, we cannot focus on two different matter especially the other one is the cost of lives of many people. Let's just hope for the best for the world, money is worthless without people.

This year there are many factories have reduced their production number, as many workers were laid off for a while until the condition getting better. This makes people phurchasing power decrease, most of investors sell their asset now because the price will continue to drop for long time. Recession for the community is certainly a disaster, bitcoin price will keep drop during the recession but  this condition can be an opportunity for those who want to start or want to continue to develop investment assets, but  dont expect immediate return. Because the recession will happen in long term.  It could be that the assets or bitcoin that we bought during a recession will continue to decline in value. But for long term holder, this is good oportunity.

We are going to suffer a recession in the economy due to the Coronavirus that has already affected all markets, including Bitcoin and all alternative currencies. I also believe that the economies of the countries that do not solve the problem of the epidemic soon may fare worse.
A positive view of the problem is that we can have soon a cure for Covid19.
After Covid19 Leaders of the world will need better ways to finance the global economy.

Global recession affects so much the bitcoin and other cruptocurrency, it has a big negative impact because the price of cryptocurrency goes down so deep, if you are updated to the market before when crisis is not existing, the price of the bitcoin reaches for about 13,000$ then when the pandemic virus exists the price of the bitcoin goes 3900$, as you can see that has so big difference snd the only thing that is responsible for that is the virus.
Even though the cryptocurrencus is decentralized it is still being affected by yhe virus. All are being affected by the virus, hoping that if this has gone all things will back to normal especially our economy.

They do it because they are mostly dumb. Like why would you sell bitcoin or gold to get more fiat money? Fiat money depends on the issuing country. If the country gets hit hard by the recession the money will lose value. They can also come up with something like Cyprus and steal your money from your bank account.

We cannot expect people to do rational things so I also think that if the recession hits us everything including Bitcoin will lose value but only for a short while. As fiat money start to lose value or be stolen by governments people will run back to buy Bitcoin.

Exactly. Fiat is the most accessible form of money unlike cryptocurrencies like Bitcoin and Ethereum. This is largely because most merchants and businesses worldwide accept Fiat, but not crypto itself. It's no wonder why many people have been using Fiat for their daily necessities in these desperate times. I believe that the more governments inflate Fiat currencies, the better it'll be for crypto. Once the world's monetary system collapses, people will lose trust from central banks leading them to use crypto more thoroughly either as a currency or as a store of value.

With how successful Bitcoin has been since inception, I believe that a global recession will be more beneficial to the entire crypto/Blockchain industry than all the other way around. The pandemic will spur innovation in the Fintech sector like never before. Central banks alongside governments worldwide, will start issuing their own digital currencies soon because it'll be no longer safe to use physical cash for mainstream transactions. Blockchain technology will be the forefront of the world's economy, as governments use it for their own benefit.

Nonetheless, it's very likely that a global recession will spur the growth of crypto usage within the mainstream world. After all, Bitcoin was created to be a solution to the global financial crisis of 2008. An alternative system free from the likes of central banks could "live on its own" in times of turmoil. This gives us no doubt that crypto is the future of money as we know it. Just my opinion

People will search the new ways to make money, and if they found crypto can be that way, they will get involved in the crypto world, and they will try to find what kind of jobs that suits with them. They will start to work and earn crypto which they will sell their crypto to fiat, and that will make the market can move better than before because many people are coming to the crypto market. People will try to earn as much coin as they can to make money and convert it into fiat money to buy their daily needs.

Global pandemics often cause recessions. This paralyzed the economic sector broadly, negative curves were everywhere. Most investment products also declined sharply a few weeks ago. It depends on how long this pandemic lasts, if it lasts a long time it will be the beginning of a bad crisis, hopefully it will not happen. Well, cryptocurrency has existed for 10 years, while the pandemic that caused the recession was decades before. So I think we can make a reference from the stock market, where industry activity is weakening, surely many are looking for other alternatives, and the stock market is the best alternative, as well as cryptocurrency.

yes Covid-19 has touched crypto, you see the price has fallen. honestly now i don't know what to expect, keep my fingers crossed the pandemic will be over soon.

Dude, it's not that bad in my opinion. I don't know if the current situation can be called as a global recession or ecnomic crisis but I think bitcoin is doing decently well. Obviously bitcoin had a dip in the beginning due to the panic situation in the market but since then bitcoin has recovered quite well.
Even in the current price at $7300 I would call it decently well since it is at a better stage than the rest of the assets.

During recessions, people tend to sell their holdings, assets and even properties in order to survive economic struggles. Don't forget that crypto enthusiasts are living in various countries. I expect that there will be series of sell-off as people cash-in on their assets in order to cope with the harsh economic effects of a recession. In such cases, I believe only a few cryptocurrencies will make the cut. The rest will be probably get sold off and forgotten. Hopefully we don't experience a global recession anytime soon (during or after COVID-19).

I think you are barking on the wrong reason here. Global recession as explained by many makes all market dive hard. Yeah maybe some will realize that crypto can be a good hedge fund alternative for investment but the probability it would also experience a tragedy that is happening on stock is also huge. Controlled or not by government, still people buying and selling crypto has been affected by the virus and you know cash is badly needed nowadays so there still a chance of huge downfall on crypto market.

Global recession will make the Cryptocurrency market stronger and gain massively over the stock market, this is because the market is not owned or controlled  by the government and its legitimization,

Without a doubt, crypto will stay no matter what happens in the mainstream world. Of course, prices will decline as a result of fear by the pandemic. But 1 coin will always be equal to 1 coin in the crypto/Blockchain world. Measuring crypto against Fiat is nothing, as it was intended to be a independent monetary system in the mainstream world. Crypto will continue to operate 24/7 as long as there is 1 node and miner on respective blockchain networks. The beauty of decentralization allows anyone to continue using crypto for daily payments without censorship, downtime, or fraud.

I'm confident that Bitcoin and other cryptocurrencies will emerge victorious in the next global recession because of their true censorship-resistant properties. The loss of trust within the world's monetary system, will pave the way for crypto and Blockchain tech's success within the mainstream world. I don't think that a global recession will do harm to the entire crypto/Blockchain ecosystem other than the reduction of price per coin across the market. If you're in it for the tech, instead of the money, you'll see great things ahead in the future. Otherwise, crypto is not for you. It's no secret than crypto experiences wild fluctuations in price over time, because of the small liquidity on the market compared to traditional stocks. The more the industry becomes regulated, the more institutional investors will come into play. This translates into stable prices per coin across the market. As long as you hold on tight without panicking, you'll be able to see great results once crypto experiences a whole new level of adoption within the mainstream world.

Nonetheless, all eyes are on Bitcoin right now since it's the reserve currency of the crypto market. If Bitcoin goes down in price, so will other altcoins. With the recent pandemic, Bitcoin has experienced a massive downfall in price as people have been cashing out for Fiat. Other coins have also been negatively affected because of Bitcoin's activity on the market. Once we're deeply in a global recession, prices might go even lower than what they are right now. But crypto will never go to zero as it's largely supported by people worldwide. Just my opinion

Very well said, global recession is now approaching but we are not yet there. There's a lot of impacts or effects of global recessions like high unemployment rates, fall in income, rise of poverty and etc.,. During this pandemic COVID-19, financial crisis are now undeniable, we are lack of supplies, stocks, income and more because of sudden temporary closure of businesses, schools, facilities and factories or even economic activities which may result to possibilities of economy to collapse. For Bitcoin, I could say that the situation of it now is definitely dropped but not totally end. This is not the first time that bitcoin dropped but it is one of those, I believe after this crisis it will back to normal, like to regain itself.  Bitcoin is successful in many ways such as from the people in the market, no bank or government involve, decentralized and more. So once you know the market you are in, you'll definitely understand how it works. But it is true that global recession would affect the cryptocurrencies but not in the point that it would make it end.

I believe that in a global recession, only Bitcoin and a few other altcoins on the top will survive. The rest will simply lose their luster because of their lack of use cases for the mainstream world. It's no doubt that with every pandemic, the economy takes a nosedive. I'd say that Bitcoin has performed quite well despite its recent crash in price. Stock markets and other assets have declined at a greater rate than Bitcoin itself. It shows us how resilient crypto is in times of turmoil.

We have to consider that the people are the ones who determine the price of a Bitcoin or any other cryptocurrency on the market. The limited supply is nothing if there's lack of demand for it. I believe that as more people become online due to social distancing, the more they'll become aware of Bitcoin and use it for their own needs. After all, it's better to use Bitcoin than physical cash since the latter brings many germs with it. Bitcoin is much cleaner to use than physical cash today. Besides that, transactions are faster and cheaper than traditional payment processors (Fiat) of today. Considering all of the benefits Bitcoin has over Fiat, I believe that a global recession will prove to be more beneficial to crypto's mainstream adoption than anything else.

Nonetheless, it's important to know that crypto is much riskier than Fiat because there's no central authority backing it. As I've said before, people are the ones who determine its price. Prices could go all the way to the moon, or down the drain in a blink of an eye. With any worldwide crisis (like the one we're facing right now) we should always be prepared with a "Plan B" just in case. This means diversifying your investment into crypto, Fiat, and precious metals themselves. That way, you don't have to worry if a global recession drains the entire crypto market. After all, prices are nothing when it comes to using crypto independently from Fiat. 1 Bitcoin will always be equal to 1 Bitcoin no matter what. Just my thoughts

Global recession would definitely affect all of the entities existing in the market including cryptocurrencies. If the economy would decline, the lives of people would be devastatingly affected and so their source of income and how the market works, in general. Cryptocurrency is not really independent to sustain itself because it is for a fact dependent t its macro enthronement as well just like any other currencies. The impact of recession to cryptocurrencies is inevitable and is not something to be surprised with. Today, that global recession ha snot yet been taking place but an outbreak of a pandemic disease is a justification of what to expect with cryptocurrencies during future crisis.

People will exchange crypto for fiat for liquidity in traditional investments or just for emergy situations. Not so good for crypto industry

When the global recession was underway, we were sure that cryptocurrencies would go up in price because of high inflation. But now we have bitcoin at $6k. I think most people suppose that crypto is a high risk investment, so it is the first assets to suffer investment retraction in a recession.

When the coronavirus starts and spreads over the world many business, jobs and people are also affected on it. The world is experiencing a difficult crisis it has a large effect in economics because many jobs and business are forced to shutdown temporarily, because of the pandemic, that’s why the price rate of many crypto currencies are go down rapidly. I hope that after this crisis everything will be fine and back to normal lifestyle.