How Would a Global Depression Affect Cryptocurrencies?
With the continued meltdown of markets, many people are discussing the possibility of the world falling into a global depression.
In this video, I wanted to discuss how such an event might affect the adoption and valuations of cryptocurrencies such as Bitcoin and Ethereum.
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▶️ 3Speak
It will do very well, I think!
But will it be crushed by the elite! As you say, many might have to liquidate due to other liabilities.
I just love your analyses!
Yes, Bitcoin is a technology. If it dumps as a result of the market crash, a lot of people will question it. But I don't think Bitcoin will be going anywhere if you look at it from a time perspective longer than market cycles. Why would interest in censorship resistant, permissionless Internet-of-Value disappear because of normal market cycles? The price may temporarily dip below what is predicted by the s2f model. But I don't think the technology is doomed. Decentralization is a much broader trend in tech than just crypto. Consider the massive computing power our hand held or wearable devices have. There are billions of these devices. The computing power these devices have is ridiculous. A smart phone can run a go playing AI that will crush any professional. With miniatyrization, edge computing will gain in power and proliferation. There is a similar trend in energy. The price of solar panels is dropping while the cost of power transmission is constant or rising.
Thank you for the kind words 🙏 And I'm totally with you! Thanks for sharing your thoughts
If no one has money to burn, online transactions will be reduced.