So if ECONOMIC DEPRESSION happened again in the world, will it affect bitcoin with it fellow digital currencies? Because economy is the back bone of everything in the world. What affect economy affect all other things. And bitcoin is the father of digital currency.
What is your say.
Of course, it will have a significant impact on the value of Bitcoin and other cryptocurrencies. Even a local economic crisis might have an impact on stocks and cryptocurrency. How much more if the economic depression which is a global crisis. I understand how difficult it is to live in such a circumstances, yet traders and investors profit from it. This is the perfect time to invest large sums of money because when our situation returns to normal, the value of the stock will return to healthy price movement. You can check the chart of a stock or Bitcoin before and after a crisis to see whether the price does not increase.
Stocks are different than cryptocurrencies, stocks are from physical companies that exist in the world and are affected by an economic crisis because their sales and stuff get disturbed because there is inflation and people don't have a lot of money to spend, thus those companies face losses and that causes their stocks to go down, but for Bitcoin or cryptocurrencies, it's a different story because they are not physical entities but they exist digitally.
When there is an economic crisis or there is extreme inflation, people tend to look for ways to invest their money so that they are safe from high inflation and devaluation, and a lot of people will choose Bitcoin and cryptocurrencies as an escape which might impact them positively in such a situation.