Quote from: kryptqnick on March 28, 2020, 07:01:30 PM

The global recession has started, and we know what it means for the global economy and the majority of people. However, I believe that we still genuinely don't know what's going to happen to cryptos. To be honest, at this point I care only about Bitcoin, so I won't mention other coins in this post. So, I am pretty sure that the recession will affect Bitcoin. What we've already seen is how the price fell drastically 3 weeks ago, but then it recovered a bit lately. It seems natural to expect Bitcoin to go down along with everything else at least for a while. Then, however, people might try to make it a safe haven, and Bitcoin can grow, but it largely depends on what people who'll start losing other assets they currently possess will decide to do.

I believe that in a global recession, only Bitcoin and a few other altcoins on the top will survive. The rest will simply lose their luster because of their lack of use cases for the mainstream world. It's no doubt that with every pandemic, the economy takes a nosedive. I'd say that Bitcoin has performed quite well despite its recent crash in price. Stock markets and other assets have declined at a greater rate than Bitcoin itself. It shows us how resilient crypto is in times of turmoil.

We have to consider that the people are the ones who determine the price of a Bitcoin or any other cryptocurrency on the market. The limited supply is nothing if there's lack of demand for it. I believe that as more people become online due to social distancing, the more they'll become aware of Bitcoin and use it for their own needs. After all, it's better to use Bitcoin than physical cash since the latter brings many germs with it. Bitcoin is much cleaner to use than physical cash today. Besides that, transactions are faster and cheaper than traditional payment processors (Fiat) of today. Considering all of the benefits Bitcoin has over Fiat, I believe that a global recession will prove to be more beneficial to crypto's mainstream adoption than anything else.

Nonetheless, it's important to know that crypto is much riskier than Fiat because there's no central authority backing it. As I've said before, people are the ones who determine its price. Prices could go all the way to the moon, or down the drain in a blink of an eye. With any worldwide crisis (like the one we're facing right now) we should always be prepared with a "Plan B" just in case. This means diversifying your investment into crypto, Fiat, and precious metals themselves. That way, you don't have to worry if a global recession drains the entire crypto market. After all, prices are nothing when it comes to using crypto independently from Fiat. 1 Bitcoin will always be equal to 1 Bitcoin no matter what. Just my thoughts Grin