2018-11-6 19:37 |
Bitcoin has been pretty impressive with its stability recently, especially when you compare it to the currently volatile global stock markets.
Early investors who were skeptical about bitcoin thought that cryptos are highly speculative and will depend on other asset class. However, this month have proved otherwise. Bitcoin along with other major cryptocurrencies held their own.
From the beginning of global trade, people wanted assets that hold value in time of economic turmoil, now Bitcoin can fill the void. Gold was used initially now cryptos can be digital gold. Countries like Venezuela prove that many people are gaining an increasing trust in digital assets when compared to fiat currencies.
Reasons For Bitcoin StabilityThere are several reasons for the top coin’s stability. One reason is the maturing of investors in the space. It was newbie investors who drove the price to be as high as $19,000. Now only hodlers and true believers are present.
Other reasons include failing stablecoins, separation from altcoins, low bitcoin usage and satisfied miners.
What Happens In Economic Crisis?There are several experts that believe that the next economic crisis in the world would happen in the coming years
According to Feldstein, former chairman of the White House Council of Economic Advisors, the scenario may be even bleaker than 2008 and very akin to 1930. According to him, over $15 trillion USD can be wiped off the economy. The professor is also concerned with the fiscal deficits rising and most of Europe and the United States will suffer the crisis.
Some of the issues that specialists take into account are related to unsustainable policies, inflation, trade wars, and slower growth. JP Morgan Chase has also given its opinion about the future crisis. They said that US Stock would slide over 20% and that emerging currencies would also fall over 15%.
In general, during crashes, silver and gold work as the preferred hedge against the crisis. However, people have new options this time, Bitcoin and other cryptocurrencies. This famous virtual currency has been embraced mostly by millennials and younger generations. Older generations may still be stuck to physical gold and other assets.
The fact is that if real-world adaptability improves, we can see more trust in bitcoin. If people hold on to bitcoins, during a financial crash the price of it will be stable. However, bitcoin should provide enough trust for them to do so.
As more and more institutional investors are getting exposed to cryptos, the ripple effect of their crash will certainly influence the crypto ecosystem. The influence of Wall Street on cryptos will only increase from now.
Similar to Notcoin - TapSwap on Solana Airdrops In 2024
Bitcoin (BTC) на Currencies.ru
|
