Correlation between Economic Downturn and Cryptocurrency Upturn

in hive-175254 •  11 days ago 

It does not take an expert to tell us that the world is going through economic recession due to Covid-19 that has crippled almost every business under the sun with the need for lockdown to prevent the spread of the virus.

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The Washington Post had shared about over 22 million in U.S. were unemployed.
https://www.washingtonpost.com/business/2020/04/16/unemployment-claims-coronavirus/

Many governments have given out Covid-19 relief fund to help everyone to cope with the financial situation but it is definitely not a long-term support.

Without the generation of income for everyone including the governments, world economy is effectively on a standstill.

Just imagine that more money is going out than coming in so it is really bad.


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The New York Times shared about Global Recession would not go away so soon in the article below.
https://www.nytimes.com/2020/04/01/business/economy/coronavirus-recession.html

With all the bad news around and many currencies in depreciation, there are many people starting to grow interest in the potential and value of cryptocurrency.


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The world governments and banks are able to control the finance and currency but cryptocurrency is not within their direct control.

Nick Chong from NewsBTC shared about The ‘Golden Era’ for Bitcoin in one of his articles recently.
https://www.newsbtc.com/2020/05/18/golden-era-bitcoin-price-coming-weekly-close/

The popular author of ‘Rich Dad Poor Dad’, Robert Kiyosaki, had shared openly about the death of dollar so he is in favour of buying gold, silver and bitcoin as investment rather than storing money in the bank with its value destined to go down.
https://www.newsbtc.com/2020/04/05/the-us-dollar-is-dying-buy-bitcoin-prominent-financial-educator/

JP Morgan is accepting Gemini and Coinbase as customers for its banking service in April 2020.
https://www.newsbtc.com/2020/05/12/jp-morgan-accepts-major-bitcoin-clients-hours-after-halving/


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The above is a big news as its CEO, Jamie Dimon, was extremely negative about Bitcoin in the past during an interview in 2017.


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With many big names that are starting to shoutout for Bitcoin and the value of it, cryptocurrency is definitely getting good attention.

In short, many are indicating that investing in cryptocurrency would be able to help us financially during our economic crisis.

Nevertheless, those who have been trading cryptocurrency would know that nothing is 100% guaranteed since the price of cryptocurrency can change easily within hours.

We are seeing signs of recovery for cryptocurrency these few days and more people are starting to believe how cryptocurrency is a way to avoid the value of their money being controlled by the banks or governments.

I am not a financial expert but I can see how this economic downturn has increased the positivity of many in cryptocurrency as a future financial investment due to the uncertainty of economic recovery.

Disclaimer: This is my personal reflection and I am not in any position to instruct anyone what they should do. I am not responsible for any action taken as a result of this post. My post can only be a reference for your further research and growth. By reading this post, you acknowledge and accept that. All images and pictures were taken from google images that are free from copyright under labelled for reuse.

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I think Bitcoin is a good hedge against failure of fiat currencies (usually a result of hyperinflation or extended period of high inflation). It used to be gold which played the role, but now we have Bitcoin. Just imagine if 1% of global wealth is put into Bitcoin (or cryptocurrencies in general), it will be a multi-trillion market cap asset class.

Thank you for your quality comment related to this topic. Your analysis is often great insight with many statistics to back your opinion. 👍

Dear @Fun2learn, you won't be wrong in your assertions, the world is shifting and the new "normal" way of life has placed demands for a shift in priorities. It is time that digital assets would be more valuable and that means a pump.

Posted Using LeoFinance

Thank you for your positive support for what I was thinking about when I was writing this article especially so many positive news are popping out everywhere.

@tipu curate

Upvoted 👌 (Mana: 6/30)