How would a global recession affect cryptocurrencies?

[johnyj]

Government will print trillions of dollars of money and try to rescue, so no worry. It is a fact that any business that has something to do with physical personal contact will get much less customer, but the virtual economy like online gaming or cryptocurrency basically unaffected, can even get a boost in number of customer, since now everyone must stay at home and go on internet

[FanatMonet]

Government will print trillions of dollars of money and try to rescue, so no worry. It is a fact that any business that has something to do with physical personal contact will get much less customer, but the virtual economy like online gaming or cryptocurrency basically unaffected, can even get a boost in number of customer, since now everyone must stay at home and go on internet

This is true, for the time of quarantine, people will sit at home and surf the Internet. But I would not expect a large increase in the number in the cryptocurrency community, people can look at the history of bitcoin, and see several serious drops, and this is repulsive.

[kooboat]

We are already seeing the impact on the market. Should the world not recover early enough from the spread of the corona virus, we are in for a bad economic down turn this year. Many businesses are likely not to meet production demands and this would greatly affect  overall productivity in the long run.

[Sadlife]

This is just a theory from The moon from youtube but according to him in the initial stages of the global economic crisis Bitcoin will do bad and will dump because some investors are cashing out to cover their losses in the stock market. And this prediction we're proven in this initial stage of the crisis, after this we should expect investors to appreciate the value of Bitcoin.

[Meowth05]

Every market will plummet and things will go south for cryptocurrency but we should not be worried because things will go smooth-sailing once this crisis is over. Many asian indexes is recovering right now and I take that and you also should take that as a good news.

[Eugenar]

When global recession happens in the world, there will be so much people that will be affected, there are so many people who will be unemployed, there are so many businesses that will go down, there are so many companies and banks that may go bankrupt, but only bitcoin will remain the same as what it is as before, that is the good thing about the bitcoin, if calamities happen in our country or even in the world, it may be affected but it wont be bankrupt, it may goes down, but for sure, it will still goes high because of being decentralized of it.

If bitcoin gets affected by the global recession, on which it is going down, the good thing that we may do on it, is to invest and hold it because we may use that to earn money, let us wait for the bitcoin to goes high again then we may now withdraw it and convert it on our fiat currency.

[Gladiator25]

How would a global recession affect cryptocurrencies?

It will reduce the price of bitcoin and other coins in the marketplace. Like for now, we are in the midst of crisis because of the virus and it really affects the price of bitcoin. As you can see on the past few days the decrease in price of bitcoin is obvious. Though bitcoin and other coins are decentralized, the price is always hard to predict.

[Pronzegirl]

Of course, this does not look good for the global economy. However, the occurrence of this recession does not mean that it is a catastrophe, so analysts cannot know whether this situation is periodic or continuous. It also indicates that the dollar was affected by these bad conditions as well and not relying on it as a reserve currency in the world. A lack of positive sentiment in traditional assets can lead to an increase in crypto assets as a viable investment, especially given recent increases in market value in a number of major currencies.

[Abiky]

Government will print trillions of dollars of money and try to rescue, so no worry. It is a fact that any business that has something to do with physical personal contact will get much less customer, but the virtual economy like online gaming or cryptocurrency basically unaffected, can even get a boost in number of customer, since now everyone must stay at home and go on internet

That's certainly true, mate. I believe that the current situation of the coronavirus pandemic will promote the adoption of the virtual economy as we know it. Everything that lives on cyberspace will gain traction like never before. This might be the end of physical cash as we know it, leading to a rise in crypto's demand within the mainstream world. Governments will have no choice but to launch their own digital currencies issued by central banks worldwide.

This makes me believe that a global recession will be more beneficial to crypto than harmful in every way. After all, Satoshi invented Bitcoin as an alternative to Fiat in times where there was an economic crisis. This is the perfect time for Bitcoin and other cryptocurrencies to shine as they're resilient against undesired events in the mainstream world. Of course, prices declined sharply across the market in terms of Fiat a week ago. But what matters is that crypto is still functional, alive, and running, without any censorship or downtime whatsoever. It's always available 24/7 giving you peace of mind. With crypto, you don't need to trust a Bank since you're your own Bank.

Right now, people are still using Fiat for daily payments. But sooner or later, they'll migrate to crypto once the financial system collapses in its entirety. And if you've managed to grab your stake in crypto now, you'll become an early adopter of the monetary revolution that's bound to change the world for the better. Just my opinion

[princerepon]

How would a global recession affect cryptocurrencies?

Not just crypto currency i think there is nothing that didn't affect by global recession. People do everything for living a life no matter what are you talking about. So if somehow your life in danger you'll try to safe your life, not your occupation or what ever you do for living. Crypto currency is a part of global economy and global economy down because of corna virus crisis (which are global recession). So it's simple that crypto currency affect by because of global economy crisis.

[just_Alice]

I think it's a bit early to call what's happening at the moment an economic recession (if you're referring to that). Call me optimistic, but according to various economy theorists, e.g. Kondratiev, with his theory of long waves or, more acknowledged economist - Joseph Schumpeter and his theory of development - such disasters, like pandemics or wars, they call for technological development and innovations which, in turns, trigger economical development too. That means, after this is over, there will be a rise in cryptocurrencies value too. Recessions don't occur, when something bad happens, they occur when nothing has been happening for a long time. Yes, in a short-term perspective there obviously will be a decline, however, instead of panicking and selling out, I would rather see it as a great opportunity to buy some more cryptocurrencies.

[camito]

How would a global recession affect cryptocurrencies?

We have enough knowledge on how a recession can affect the world economy, market, and trading civilization. It is hard for market analysts, strategist, and experts to actually prevent this. Stating globally, it involves the whole world be it a large economy or not. Some countries may rise again at a pace, but for others it will be a rocky ground.
Fiat or any tangible currency may experience the same but in terms of Bitcoin and other forms of cryptocurrency, it won't be at a state of zero. Bitcoin is volatile and decentralized as we know it so it won't be hard for it to bounce back again knowing its decline in the present. Only a matter of time until users could again rejoice for healthy trading and earning coins.

[Arkann]

I think it's a bit early to call what's happening at the moment an economic recession (if you're referring to that). Call me optimistic, but according to various economy theorists, e.g. Kondratiev, with his theory of long waves or, more acknowledged economist - Joseph Schumpeter and his theory of development - such disasters, like pandemics or wars, they call for technological development and innovations which, in turns, trigger economical development too. That means, after this is over, there will be a rise in cryptocurrencies value too. Recessions don't occur, when something bad happens, they occur when nothing has been happening for a long time. Yes, in a short-term perspective there obviously will be a decline, however, instead of panicking and selling out, I would rather see it as a great opportunity to buy some more cryptocurrencies.

I don’t know what to really expect in the near future, since any forecasts are just thoughts and assumptions, but until recently, many analysts and experts have already talked about the impending environmental crisis around the world.  The current situation with the coronavirus epidemic makes this problem closer and more relevant.  I believe that the global economic problem around the world in 2008 was the impetus for the creation of bitcoin, so I am sure that the next economic crisis will make the cryptocurrency market more popular among investors, as well as among ordinary users of the cryptocurrency, where Bitcoin and other cryptocurrencies will be really used not only  as digital assets for investment, but also as a legal tender.

[madhavsinghrajput]

The global recession has already affected the bitcoin.The liquidity in the market is next to none and that is all due to lock down because of covid-19.People are first thinking of surviving rather than investing.As there is shortage of money people are converting BTC into fiat and that is hampering the market.This recession is not only affecting fiat or btc but also affecting gold and many other medium of investment.But This is also the best time to buy as people can get good return in short time span.

[kryptqnick]

How would a global recession affect cryptocurrencies?

The global recession has started, and we know what it means for the global economy and the majority of people. However, I believe that we still genuinely don't know what's going to happen to cryptos. To be honest, at this point I care only about Bitcoin, so I won't mention other coins in this post. So, I am pretty sure that the recession will affect Bitcoin. What we've already seen is how the price fell drastically 3 weeks ago, but then it recovered a bit lately. It seems natural to expect Bitcoin to go down along with everything else at least for a while. Then, however, people might try to make it a safe haven, and Bitcoin can grow, but it largely depends on what people who'll start losing other assets they currently possess will decide to do.

[Gozie51]

How would a global recession affect cryptocurrencies?

Everything is gonna go on a nosedive. We aren't even in a recession yet and everything(including gold, the de facto "safe haven") dropped. We really don't know, but it's pretty safe to assume that it will be a lot worse when a recession really happens.

Really ? I think the world is even experiencing what is more than recession. Recession is about the economy and not necessarily direct health issue that is threatening life. Covid-19 is life threatening and everybody is indoors, no economic activity going on. Fear is written on peoples faces even as government officials who are suppose to provide ideas, policies and government support are getting affected. This is a serious issue that the world is facing at this time.

[Sendoku]

We'll never know for sure, nobody knows. If BTC continues to follow what happens across other industries, oncoming future doesn't look so good for us

[rexxarofmoknathal]

Government will print trillions of dollars of money and try to rescue, so no worry. It is a fact that any business that has something to do with physical personal contact will get much less customer, but the virtual economy like online gaming or cryptocurrency basically unaffected, can even get a boost in number of customer, since now everyone must stay at home and go on internet

Kinda true, I can't agree with everything but some aspects such as the strength of the crypto community should keep improving though it is still yet to be determined by people's reaction to the fiat crunching economy. The fact that more money will be printed it's not going to solve the problem since inflation will rise to offset that, so people won't be gaining much at all. This is almost the perfect situation where crypto can stand out as a much reliable alternative of currency than fiat.

[Kurokonobasuke]

How would a global recession affect cryptocurrencies?

When the coronavirus starts and spreads over the world many business, jobs and people are also affected on it. The world is experiencing a difficult crisis it has a large effect in economics because many jobs and business are forced to shutdown temporarily, because of the pandemic, that’s why the price rate of many crypto currencies are go down rapidly. I hope that after this crisis everything will be fine and back to normal lifestyle.

[abuya55]

When the global recession was underway, we were sure that cryptocurrencies would go up in price because of high inflation. But now we have bitcoin at $6k. I think most people suppose that crypto is a high risk investment, so it is the first assets to suffer investment retraction in a recession.