Post
Topic
Board Speculation
Merits 1 from 1 user
Re: How will the next big recession affect the BTC price?
by
vit05
on 26/10/2018, 23:16:07 UTC
⭐ Merited by JungleOnion (1)
I believe the big question will be: How global Bitcoin is, in an eventual major crisis.

The crises are always originated in some local fact and spread to different markets. The reason is trust. The entire financial market is based on gentlemen's agreements with some legal security. In major crises, these securities are few. Since the current money is virtual and backed by securitization.

If Bitcoin is a global asset, used on a large scale both in the financial market and to buy local goods and services. With great volume negotiated. Easy access for ordinary people and for big investors. The crisis could be an opportunity and many could buy Bitcoin as a store of value.

In most countries, it is very difficult for an average person to buy an asset and keep it away from the banking system. With what asset could I do this? Maybe with the gold. But not every country has a retail market that can provide that. Many people buy jewelry, objects of art and real estate for this purpose. We are in a new generation that does not care so much about investing in real estate. We use less and less jewelry. The object of value that most people carry is a cell phone, which loses value in a year. And investing in art is still for very rich people.

So in countries with volatile economies, whose currency can be greatly devalued. If you have Bitcoin, this can mean that you could have the only thing that makes you stay with some valuable commodity worldwide. And that you can use during a crisis. We are seeing this in countries like Venezuela.