Connect with us
[ccpw id="998"]

News

What Would Happen In Another Recession?

Samantha Mitchell

Published

on

As always in the Financial Industry, there is always the question on the back of everyone’s minds, what happens if there is another recession or financial meltdown And even more so now, this is becoming a big uncertainty in the Cryptocurrency Industry.

As is widely known, there are a few rumblings throughout the world economy at the moment. Europe has its worries with the Italians and debt that has extended to issues within Deutsche Bank. Furthermore, both Turkey and Argentina are facing their problems with their emerging markets. All of this is without even looking at how many countries and central banks are now pulling their money belts tight and putting in place stricter restrictions on policies and financial markets. On top of this, as worldwide financial markets are getting used to this new generation digital economy, some governments are now putting bans on elements (if not all) of the Cryptocurrency industry to allow them to research further into this concept.

All of the above is having an impact on the global economy.

Positives And Negatives

There is, as always in the Cryptocurrency Market, two sides of the story and two very different opinions on what could happen if there was a worldwide recession.

One half is suggesting that it actually could be something amazing for the digital economy. The last crash back in 2008-2009 happened well before Cryptocurrencies were off the ground, so the financial depression had a minimal effect on them. The next time it will be completely different. Those on the positive side are pretty confident that bitcoin would flourish in the downturn. It is easy to obtain, and monetary policy reviews do not have any bearing either. There is also only a small correlation between risk assets and Cryptocurrencies. So the latter may well not be brought down by the reducing mainstream risk assets at all.

However, on the negative side, we would see the prices of Cryptocurrencies going through the roof undoubtedly. Another thought is the fact that these high-risk Cryptocurrencies and tokens will be the first to be cashed in as soon as the market starts to fall over. This is the typical response when a recession hits.

And In Summary

It is another one of those “who knows what the future holds” for the Cryptocurrency Market, but what is sure is that it will be a critical turning point when the first crash does happen. The Digital Economy could go either way, and nobody is sure until the first one takes place.

There could be a two-stage fallout with an initial sell out of Cryptocurrencies and then a return to the market once things have settled down. Alternatively, there could be a tremendous increase in digital activity, and the industry could see huge profits. Whatever happens and whichever way this Cryptocurrency leaf falls, there is one thing that must happen according to industry experts – Cryptocurrencies must be integrated into the rest of the financial market and no longer seen as a separate entity.

Sharing is caring!

Advertisement

Facebook

Copyright © 2016 Bestgpuformining.com.

en English
X
Free Mining Newsletter
We Don't like spam, we will send you only our Mining Cards tests, Mining News and Tricks or Coins to Mine tips!
We respect your privacy.
shares