How would a global recession affect cryptocurrencies?

  • 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.

    What do you think?

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