Recession into Depression – An Inevitable Reality?
Although being one of the most volatile asset classes in the world over the past month, cryptocurrency as an asset class has not been alone.
Although being one of the most volatile asset classes in the world over the past month, cryptocurrency as an asset class has not been alone in seeing erratic jumps and dumps in price.
Wall Street has seen its worst nosedive since 1987, oil prices are tanking, gold is on the rise, and billions of dollars are being evaporated from the global economy each day – almost as fast as it’s being printed.
US companies are seeing landmark sell-offs, global supply chain networks are seeing cracks and Covid-19 is seeing sure that global industry grinds to a halt.
Since January, Bloomberg’s 12-month recession probability tracker has risen to 100%.
What is an Economic Recession?
Most of you would have already experienced multiple recessions in your lifetime, but with the past 11 years being the largest economic expansion in modern history, many fear the crash will be just as powerful.
When individuals collectively lose confidence in the economy, they often choose to save their money instead of spending it. This means less money ends up in the hands of businesses, meaning less money for businesses to spend on expanding operations and paying employees.
This, as history has shown many times, can have disastrous effects on global supply chain and business infrastructure, as well as on local governments and global markets.
In saying this, recessions are a normal part of any economy, and all overreaching growth must be curbed by correction – as we see daily in the cryptocurrency market.
But what about the Good News?
Every financial crisis is followed by opportunity, and history can confirm this to be true.
What we can’t look back on in history, however, is how decentralised assets like Bitcoin will respond in the face of global recession or depression.
Bitcoin, the world’s first cryptocurrency, was forged and published on the final stretch of the global financial crisis of 2008 – with the intention to prevent an event of that scale happening ever again.
12 years on and the ball is undoubtedly rolling – but will this impending recession be the catalyst that truly sends crypto to the moon?
Gold can be mined from space, money can be printed from thin air, but there will only ever be 21 million Bitcoin in existence – and its utility and value are becoming more and more recognised each day.
The world is changing fast and the world of cryptocurrency is too.
Regardless of how global markets see on over the foreseeable future, Easy Crypto NZ will be here to help you buy and sell cryptocurrency on your own command – 24 hours a day, 7 days a week.