Crypto in general? Drop most likely. Not only crypto, everything would literally crash down. Now if the gold acted like how it acted to the virus right now, you can expect that banks and the government would have no way to remedy the problem quickly. Safe havens were made assuming that their values retain the same value even in dire situations, but with it also going down, you can expect a lot to go haywire.
As for Crytpto being a possible safe haven, I have doubts but I initially thought of it as one actually, Bitcoin specifically. But sadly, Panic holds a huge factor in recessions and it seems like Bitcoin doesn't sit quite well in temrs of panic. Just look at how the panic over the virus has caused the current price.
Topic: How would a global recession affect cryptocurrencies? - page 4. (Read 942 times)
Crypto will drop but I think it will be a better investment that stocks investing.
yes, we saw how this market dump in the past few days, but I like to believe that this is just an initial reaction for the panic, and what I am seeing now is that bitcoin is holding at $5000 level, there are no big down trend anymore, so we can say some people have already found that bitcoin is a good alternative to invest with when the economy is struggling, in crypto.
yes, we saw how this market dump in the past few days, but I like to believe that this is just an initial reaction for the panic, and what I am seeing now is that bitcoin is holding at $5000 level, there are no big down trend anymore, so we can say some people have already found that bitcoin is a good alternative to invest with when the economy is struggling, in crypto.
All of the same markets experienced the same thing because they were stranded because of the significant decline made by the people that made the whole world market plummet in a short time.
Bitcoin is good in investment conditions as it could be an alternative for other investments but it also needs to be seen because right now the whole is not good in any investment because the world economy is in crisis right now, but after everything has recovered I think bitcoin and the stock market will increase again.
Crypto will drop but I think it will be a better investment that stocks investing.
yes, we saw how this market dump in the past few days, but I like to believe that this is just an initial reaction for the panic, and what I am seeing now is that bitcoin is holding at $5000 level, there are no big down trend anymore, so we can say some people have already found that bitcoin is a good alternative to invest with when the economy is struggling, in crypto.
yes, we saw how this market dump in the past few days, but I like to believe that this is just an initial reaction for the panic, and what I am seeing now is that bitcoin is holding at $5000 level, there are no big down trend anymore, so we can say some people have already found that bitcoin is a good alternative to invest with when the economy is struggling, in crypto.
A global meltdown could be because of the Coronavirus which has slowed down most economic activities around the world and people have been told to stay home which is even hurting many industries maybe China being the worst affected country a reason people suspect this is a biowar/trade war but that's all speculation.
In terms of affecting cryptocurrencies I think demand for crypto should go up as fiat will be less accessible as banks will also be closed in this trying times leaving digital currencies open for use 24/7.
In terms of affecting cryptocurrencies I think demand for crypto should go up as fiat will be less accessible as banks will also be closed in this trying times leaving digital currencies open for use 24/7.
As the recent crash has shown, cryptocurrencies are very susceptible to various threats. If exchanges fell by 8-12%, then cryptocurrency lost all 40%. Especially not in favor of cryptocurrency is a comparison with gold, which has lost about 8%.
How would a global recession affect cryptocurrencies?
What is happening right now isn't called a global recession by the media but we know that it already is as we saw the global markets going down because of the virus.Every asset right now has been battered by what is happening right now. Stock markets, gold and even cryptocurrency. We saw already how crypto is affected right now as the global recession occurred. It went down very hard and it is the for me the fastest drop in a short amount of time although this is not the worst drop that Bitcoin has made. We saw Bitcoin went to up $20,000 from around November-December 2017 and 1 year after, it went down from $20,000 to almost $3,000. Now in less than a month, we saw Bitcoin went from $10,000 all the way down to the $4,000 price. Not the worst one but the fastest drop I've ever seen.
How would a global recession affect cryptocurrencies?
CNN stated that global recession is starting to become inevitable. This is because of the fear among financial markets and investors of today. Due to lockdowns, normal operations on businesses, factories, industries, hotels and many more are temporarily stopped, but definitely in a long period of time. We have seen how SARS-coV and MERS-coV affected the economy big time, in China and Saudi Arabia respectively, and other affected countries. I really think crypto would fall back big time also, since people would start to be more doubtful with it. Especially those investors who do not trust the unstability of Bitcoin and other forms of cryptocurrencies. However, we all know that in time, crypto would start rising again in relative to fiat when the time comes that the globe is able to survive this pandemic. There is no need for panic and overthinking. What one need is a critical and rational mind. To be able to play and go with the flow that won't let you go bankrupt and waste the efforts you've put from the very start.
In the long term cryptocurrencies will go up in relation to fiat currencies. As CBs start to print money, fiat goes down in value making crypto going up in price.
Earlier on this forum, the prevailing opinion was that in the event of a global economic crisis and various disasters, bitcoin and other decentralized cryptocurrencies will be a reliable refuge that will protect our savings from inflation. However, the reality was different. It is impossible to live in this world and be independent of it. Cryptocurrency was no exception. Whatever the reasons for the fall of these days of the cryptocurrency market, however, the fact remains: bitcoin has actually fallen in price by half.
A small economic meltdown has already shown its effect in the present crypto market. Considering a global meltdown its effect will be the same for cryptocurrency market too.
I definitely do not want this to happen but when it happens I will sell everything and reserve fiat.
I definitely do not want this to happen but when it happens I will sell everything and reserve fiat.
How would a global recession affect cryptocurrencies?
It will affect crypto too, whether it's direct or indirect, although cryptocurrencies are not part of commodities in all countries. But the global recession means every country will have a big problem in each country, so each government needs to solve the problem. It could impact too much with every people in all countries, they will get the same thing, but the portion will not be the same. But the market might be collapse, especially the stock market because people buying and selling in that market.
How would a global recession affect cryptocurrencies
Because bitcoin is also a part of global economy. It's not out of economy that wouldn't affect. It's like when you have pain on your teeth then it will affect on your all body. I have noticed even gold price is dumped as well. It's normal behavior during global recession, some product will dump which isn't compulsory for our daily life like gold, and some product price would be more higher which compulsory for our daily life like foods. So bitcoin isn't compulsory for our daily life, we can live without btc but we can't alive without foods. So most of people sold btc for real cash and they like to hold some cash for emergency situations. That's how global recession affect on bitcoin. How would a global recession affect cryptocurrencies?
We have seen the effects already, not just crypto but the rest of traditional global market also crashed.
I'm not saying the crypto is not a good hedge, but the panic that corona virus scare has cause is too much for all the market to go into it's knees. I guess recession really affects everyone, from simply investors to those who have tons of money as well.
It doesn't really feel like there will be recession though. Markets may be crashing but to regular people who doesn't have access to investments like stock or crypto, its just like regular year. But for those of us who lare aware of the markets, it made us panic. Selling your coins today would make sense than keeping it when it can't be spent to buy what you need in times of reccession.
How would a global recession affect cryptocurrencies?
Everything is gonna go on a nosedive. We aren't even in a recession yet and everything(including gold, the de facto "safe haven") dropped. We really don't know, but it's pretty safe to assume that it will be a lot worse when a recession really happens.
In a global recession, nothing might be safe. In a time when economic activities are at its lowest, the people badly need money. And money can hardly be found, or perhaps even nowhere to be found to a lot of people, when production of goods is reduced to the minimum, investment is drained, unemployment rate is very high, trade is not moving, and people are losing the capacity to purchase and consume. In a state like this, it does not surprise us that people will not buy Bitcoin. As a matter of fact, they will sell it if they have it. Would that be unbelievable? Of course, not. That is expected and it is inevitable that Bitcoin's value will also plummet in that state. Bitcoin's market is not absolutely independent from what is happening to the world. It is very much part of it.
But Bitcoin will not go bankrupt. It does not happen. Companies may go bankrupt. Even countries may reach a state of crisis and be buried in debts. But Bitcoin does not reach that state. Bitcoin will eventually bounce back. Why? Because despite what is happening to the world, Bitcoin does not lose its features which make it as successful as it is now. Bitcoin remains to be decentralized, transparent, global, unseizable, and so on.
But Bitcoin will not go bankrupt. It does not happen. Companies may go bankrupt. Even countries may reach a state of crisis and be buried in debts. But Bitcoin does not reach that state. Bitcoin will eventually bounce back. Why? Because despite what is happening to the world, Bitcoin does not lose its features which make it as successful as it is now. Bitcoin remains to be decentralized, transparent, global, unseizable, and so on.
How would a global recession affect cryptocurrencies?
WE ALREADY KNOW !!!
BitCoin is CRASHING in price since the economic crisis started, and Alt Coins are doing even worse. This is just getting started, there is no price floor for BitCoin, it could be virtually worthless in a short time.
It will not be a global recession, it will be an ECONOMIC CRASH and GLOBAL DEPRESSION. Those that bought into the BitCoin as a safe haven asset lie are going to get wiped out.
Hard Facts
How would a global recession affect cryptocurrencies?
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