How Bitcoin reacts to the fall of the US stock market
It has long been flying in the society of economists that the new financial crisis will soon come, which will be larger than the crisis of 2008. Which will hook everyone living on the earth, as everyone is connected with finances. I can assume that it will start with the collapse of all other currencies, not including the dollar - first. Then he will begin to become cheaper, but already relatively more stable goods. And of course, in times of instability, investors seek refuge for their investments, from the history of recent crises, gold was such an instrument. And as you know, history repeats itself in the market like nowhere else.
About the crisis and crypto-market in simple language for dummies.
Below, I dare to briefly write my thoughts on what exactly will happen to the cryptocurrency market in case of a possible financial crisis, but I remembered, absorbed and rebuilt my DNA about what I saw during crises with my own eyes so that trading remains one of my types of earnings.
Why short? Because, first of all, I don’t like to talk on this topic, because all crises are the same, and their process in the textbooks are described in detail (the essence is the same, the forms are different). Secondly, if the reader does not understand how money, business and financial models live, then let others explain.
Nobody knows how to start the collapse. It has always been this way and that is absolutely true. The information will become clear in a few days, when the whole market is filled with tomato sauce. The catalyst can be anything: act of terrorism; the beginning of a military conflict; attempt; the inability of any one of the major world players to repay their debts, or to confirm their solvency; adjudication in a dispute between some large corporations; a sharp statement by the head of state from the G20, or the head of the Central Bank, useless reporting for the quarter or last year, etc. etc. Options - the mass. Only a little kick will be needed.
Venture capital is capital used for private equity investment, which is usually provided by external investors to finance new, growing companies, or companies on the verge of bankruptcy. Venture investments are, as a rule, risky investments that have a higher than average return.
Cryptocurrency is a venture capital. With a decrease in world indices, the situation will worsen. His first withdraw to repay debts.
Therefore, I am confident that when the global crisis hits, the venture capital market will get a kick in the ass first of all. And I can say that I will certainly be saddened by this, because progressive ideas must win. But the crisis is uncompromising than us. It will clear the market of the weak and keep sprouts reasonable. My task is to be ready for this development of events, to realize the whole amount of tin that may occur and not build air castles. It's me. And you?