CoronaVirus good for crypto?
Please, don't misinterpret my title. I am not saying in any way that this health emergency is a good thing. The loss of human life is tragic no matter how you look at it for the most part.
I (and a lot of other people smarter than me) have been saying for a long time that a recession is potentially coming in 2020.
It also hasn't escaped my notice that when the stock markets are doing well cryptocurrencies tend to go negative. Likewise when the stock market takes a down turn, then crypto's seem to experience some gains.
I saw a headline just this morning that the Chinese stock market is taking a very large hit due to the recent issues in the country.
Trust me, I don't pretend to be an expert on any of this, but it seems to me that fiscal issues seem to have a ripple effect especially across the major economic powers in the world. Random fluctuations in the market are not uncommon, I think we all know that.
It isn't very surprising to us anymore when we hear or see that stocks had the largest gain one day and then they suffer their biggest loss the next. Things always seem to equal out in the end. That is part of the reason that so many people trust these markets for the majority of their retirement investments.
With the overall sustained gains that the US markets had been seeing for much of the past two years, is it impossible to think that this health crisis could have a far reaching impact on the markets of the world?
And, as I said, it always seems that when the traditional markets are suffering losses, crypto markets are seeing gains. I know there are a large number of economists, and economy enthusiasts on here. Heck, if you took a finance course in college you are probably more knowledgeable about this subject than I am.
What do you think? Will the Corona Virus be the catalyst that triggers a recession? Do you think the downturn in the Chinese market will boost cryptocurrency? Do you agree that a recession is even imminent? Given the last one in 2008 part of my finds it hard to believe anyone would let that happen again, but I also know that even in bad times someone stands to benefit...
Let me know what you think in the comments.
I am not an expert, and none of this by any means should be taken as financial advice.
One good thing about Trump is the performance of the Stock Market. But it cannot keep going up and up.
I think we're do for a Correction which in turn might help Crypto has you noted
Hi @robertandrew
I may be wrong, but my impression is that Stock markets can go up as long as more money is being printed and pumped into system via REPO market or another QE. That will most likely cause inflation, but majority of those money will end up bringing stock markets to another ALTs.
ps.
Crypto needs more regulations before investors will flood this market again. Wouldn't you agree?
Cheers,
Piotr
We just never seem to get out of the downward spiral, hopefully this virus doesn't run riot. No matter what the currencies around the world will still take a knock with current events.
Good idea to spread your investments out into different spheres, cryptocurrency may be swings and slides, so is fiat.
Hi @joanstewart
Indeed. Our downward spiral movement is just picking up the speed :/
ps.
Crypto needs more regulations before investors will flood this market again. Wouldn't you agree?
Cheers,
Piotr
In our countries it really is the lion eating it's self, hopefully people will stand up against ruling parties.
Crypto started off being an amazing project, as soon as greed arrived at end of 2017 within the market, excitement subsided and heavy rulings appeared from governments, new laws imposed which wiped out the original drive felt. This was anticipated since the idea is about going global, now it is security along with a tug of war between all, literally still a free for all wild west show out there.
It's me again @joanstewart
I just realized that I never actually thanked you for your comment. Big thx.
ps.
I would need to ask you for little favour. Recently I've decided to join small contest called "Community of the week" and I desribed our project.hope hive/community. Would you mind helping me out and RESTEEM this post - just to get some extra exposure? Your valuable comment would be also appreciated.
Link to my post: on steemit or on steempeak
Thanks :)
Yours, Piotr
Hi, @bozz!
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I believe that this virus is man made and that they are exagerating about the gravity of the situation. From what I heard on radio there are about 200 people who died from it, in China, and there are about 80 people that died in Romania this year from flu. We are 20 million, they're one billion, do the math. What they don't tell is that most of the ones that have died in both cases are people with other health conditions. The gravity is just media manipulation and there's always a reasoning behind that. Regarding crypto I believe that the halving this year plays an important role in taking the prices high.
Good points. I am not usually much of a conspiracy theorist, but part of me was wondering if it might be a manufactured emergency as well. The media sure does a good job of sensationalizing things as much as possible!
Very true @steevcainz
Crypto needs more regulations before investors will flood this market again. Wouldn't you agree?
Cheers,
Piotr
For Mass adopters yes. I think that some regulations might be a good thing as opposed to the whole idea of crypto as they are.
I dont have a lot of thought on this but your post and the comments so far are interesting to read and ponder
Thanks!
Dear @bozz
Your title worked so well as a click-bait :) At least it worked on me.
I've been worried whenever I thought about 2020. I believe that it was kind of miracle, that world economy managed to avoid serious trouble just last year.
Surely I think that we will all experience huge wealth movement. And investors will be trying to find "safe heavens" for their assets. Most likely crypto will attract many of them.
yours, Piotr
I think people should have seen this coming when the markets kept gaining and gaining. Sadly, it going to be too late when many people realize what they should have done.