Will a Flagging Global Economy Benefit Bitcoin?

 In Technical View
bitcoin
Bitcoin (BTC)
Rank: 1
$
8,172.41
Price (BTC)
Ƀ1.00000000
Marketcap
$
147 B
Volume
$
18 B
24h Change
2%
Total Supply
21,000,000.00 BTC

ethereum
Ethereum (ETH)
Rank: 2
$
180.00
Price (BTC)
Ƀ0.02202500
Marketcap
$
19 B
Volume
$
7 B
24h Change
3.52%
Total Supply
0.00 ETH

ripple
XRP (XRP)
Rank: 3
$
0.286456
Price (BTC)
Ƀ0.00003500
Marketcap
$
12 B
Volume
$
2 B
24h Change
1.14%
Total Supply
100,000,000,000.00 XRP

litecoin
Litecoin (LTC)
Rank: 6
$
54.51
Price (BTC)
Ƀ0.00667000
Marketcap
$
3 B
Volume
$
2 B
24h Change
3.8%
Total Supply
84,000,000.00 LTC

Will a Flagging Global Economy Benefit Bitcoin?

As trade relationships between global powers like the US, China, and Germany trend lower, so too are prospects for the worldwide economy. Safe-haven assets like gold are mooning against major global currencies as other minor currencies begin experiencing devaluation against majors. 

It’s becoming exceedingly fair to wonder whether Bitcoin is the next asset in line to find itself in favor as local currencies like USD, JPY, GBP, EUR, and CNY begin plummeting. 

Bitcoin has been slowly building its case as a safe haven asset. The coming months will be vital for both bolstering that case and BTC value. Sovereign currencies may, as a sign of the times, show relative weakness when compared to Bitcoin, the world’s flagship digital currency.

In lieu of a Libra coin-level protagonist in the digital currency space, Bitcoin is the best shot the world has at weaning itself away from central bank-issued, banker controlled, inflationary currency. 

Just how well global financial players make use of the bitcoin opportunity to keep their heads above water through an impending recession is yet to be seen. However, given the unabating drive of global financial institutions to create the onramps necessary for adopting digital currencies, we think there is a fair chance they’ll be hedging their bets with BTC in the coming years.

Why BTC Will Benefit From a Recession

The case for Bitcoin benefiting during a global recession is rather straightforward. When a recession event affects the economies of most major countries, there generally hasn’t been anywhere to hide. Until recently, investing in a select few assets was the only choice, and most of them require that you’re either an accredited investor, or that you go through an intermediary institution.

However, since the arrival of Bitcoin, that is no longer the case. Instead of jumping through the usual hoops to park your wealth in a safe haven asset, you can simply buy Bitcoin on an exchange of your choosing. No special credentials are required, and you can buy as much (or as little) as you prefer. 

The relative ease of the process of buying BTC, when compared to other assets like gold, means that globally, we may witness a mass migration into Bitcoin. Additionally, because Bitcoin is a global digital currency that has no border restrictions (unlike regional currencies like USD), it may move with less volatility than assets restricted to regional buyers. 

Think of it this way. When you buy a regionally-tied asset, you’re also tying yourself to the fortunes or misfortunes of that region since those fortunes will greatly affect the value of the asset itself. 

Bitcoin, on the other hand, a globally distributed and supported digital asset, isn’t tied to the fortunes or misfortunes of any one economy or region. More distribution and less influence-concentration make for a more stable currency that serves to protect wealth. 

In the event a recession unfolds in light of the ongoing trade war between the US and China, look to Bitcoin to pull through and save the day.

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Will a Flagging Global Economy Benefit Bitcoin?
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