Correlation between Economic Downturn and Cryptocurrency Upturn
It does not take an expert to tell us that the world is going through economic recession due to Covid-19 that has crippled almost every business under the sun with the need for lockdown to prevent the spread of the virus.
The Washington Post had shared about over 22 million in U.S. were unemployed.
https://www.washingtonpost.com/business/2020/04/16/unemployment-claims-coronavirus/
Many governments have given out Covid-19 relief fund to help everyone to cope with the financial situation but it is definitely not a long-term support.
Without the generation of income for everyone including the governments, world economy is effectively on a standstill.
Just imagine that more money is going out than coming in so it is really bad.
The New York Times shared about Global Recession would not go away so soon in the article below.
https://www.nytimes.com/2020/04/01/business/economy/coronavirus-recession.html
With all the bad news around and many currencies in depreciation, there are many people starting to grow interest in the potential and value of cryptocurrency.
The world governments and banks are able to control the finance and currency but cryptocurrency is not within their direct control.
Nick Chong from NewsBTC shared about The ‘Golden Era’ for Bitcoin in one of his articles recently.
https://www.newsbtc.com/2020/05/18/golden-era-bitcoin-price-coming-weekly-close/
The popular author of ‘Rich Dad Poor Dad’, Robert Kiyosaki, had shared openly about the death of dollar so he is in favour of buying gold, silver and bitcoin as investment rather than storing money in the bank with its value destined to go down.
https://www.newsbtc.com/2020/04/05/the-us-dollar-is-dying-buy-bitcoin-prominent-financial-educator/
JP Morgan is accepting Gemini and Coinbase as customers for its banking service in April 2020.
https://www.newsbtc.com/2020/05/12/jp-morgan-accepts-major-bitcoin-clients-hours-after-halving/
Video Source
The above is a big news as its CEO, Jamie Dimon, was extremely negative about Bitcoin in the past during an interview in 2017.
Video Source
With many big names that are starting to shoutout for Bitcoin and the value of it, cryptocurrency is definitely getting good attention.
In short, many are indicating that investing in cryptocurrency would be able to help us financially during our economic crisis.
Nevertheless, those who have been trading cryptocurrency would know that nothing is 100% guaranteed since the price of cryptocurrency can change easily within hours.
We are seeing signs of recovery for cryptocurrency these few days and more people are starting to believe how cryptocurrency is a way to avoid the value of their money being controlled by the banks or governments.
I am not a financial expert but I can see how this economic downturn has increased the positivity of many in cryptocurrency as a future financial investment due to the uncertainty of economic recovery.
Disclaimer: This is my personal reflection and I am not in any position to instruct anyone what they should do. I am not responsible for any action taken as a result of this post. My post can only be a reference for your further research and growth. By reading this post, you acknowledge and accept that. All images and pictures were taken from google images that are free from copyright under labelled for reuse.
I do agree with your points that the global economy is going through really a bad situations and even in my country there are more than 14 Cr people lost their jobs. Not only this there are so many employees who is not getting paid for their work just because of Covid-19 including me. lol...
But I am glad to be a part of Crypto Space as I have started showing interest in crypto world when I was in my college and started investing a small amount in it. The best thing is for us is that every market is going down where Crypto is going up and they're so many people showing interest in crypto and it could be a reason for the next Bull run.
Thank You and I really enjoyed your post :-)
Nice to know that my article makes sense. I created this out of inspiration actually. Thanks for your positive comment and your personal sharing.
Keep it up Man!
Crypto currency has provided people with a good earning option especially during this period of crises, I also believe the adoption of crypto currency will provide transparency to the governmental system.
Thanks! It may be a way that we can avoid being affected when currency price goes down. The positive side is some countries are adopting crypto. Japan had shops accepting their Japanese Crypto, Monacoin, many years back.
Saving in banks reduces value of money, cryptocurrency is a sure way to increase the value of the funds and so many people are waking up to the awareness of crypto which is a good thing for everyone.
Yes. It is good that many are starting to be aware of crypto when Covid-19 is causing world recess.
Keeping funds in bank savings right now is not really a cool thing to do as the value will keep depreciating, but what about if investments are made and the value just goes too low beyond what we can handle, everything is risky in my own opinion.
Indeed. Investment has its own risk so good research is important before putting in our money.
@tipu curate
Upvoted 👌 (Mana: 12/20 - need recharge?)
Thank you very much for your support!
From what I have been reading and hearing, some new millionaire will emerge after the pandemic and majority of them will come from the crypto space, reading so many crypto news just makes me wish I had done some extra fund to put away but I am certain there will always be a next time.
I guess we miss the train and need to wait. When Bitcoin was around 3k not too long ago, many of us did not think of investing. It is like a big revival of crypto and hopefully it is as big as the year 2017 that can increase the price of our alt coins too.