Are cryptocurrencies destined to fail with the next financial crisis?

One question that I am continuously asked is: if there is another financial crisis and the stock market crashes, will cryptocurrencies be affected?

As Bitcoin continues to rise, is seems that sceptics are running out of new ways to condemn cryptos. We are all too familiar with arguments that Bitcoin is a scam and Jamie Dimon likening the recent boom to the tulip mania 400 years ago that led to an almighty crash. Now a prevailing rhetoric has emerged that cryptocurrencies, and Bitcoin in particular, will fall alongside the impending market crash.

However, in a recent article in RT, eToro analyst Mikhail Mashchenko provides an alternative perspective. He believes that Bitcoin (and other cryptocurrencies) would be a relatively safe-bet amongst an economic downturn.

“The demand for Bitcoin is growing as the crypto market has become less volatile, and an increasing number of professional investors see it as insurance.”

The reason why this is such an important and topical issue, is because of the length of the current bull market. We are almost part of the longest bull market in history. This market has lasted 104 months and is fast approaching the longest ever market of 113 months that came to an end in 2000. We all know how that ended!

Cryptocurrencies were of course born amongst the rubble of the 2008/09 financial crisis and it is only natural that people will look to them again when the downturn comes.

There does appear to be a general shift towards decentralisation (as discussed in my previous blog: https://steemit.com/cryptocurrency/@alexmavor/time-for-decentralisation-the-tide-is-changing-in-silicon-valley). This is a result of people's disillusion with manipulative banks, governments and centralised big businesses.

The mood seems ripe for cryptocurrencies to take centre stage. Whilst I do not think the transition will be smooth or immediate, it does seem inevitable.

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