87
Elon Musk has stated in an interview a few days ago that he's expecting world economies to enter a recession in spring-summer time this year and he's not the only one tackling this topic. Alessio Rastani, renowned trader, and zerohedge.com have also iterated that we might be on the verge of a recession/depression.
I have friends who were talking about it for years now and it might happen. I am not that good at studying the economy and its key metrics to be able to tell if we are indeed months away from such turmoiled times.
As far as I can remember, I haven't lived a recession or a depression yet, I remember quite vague the 2008 financial crisis, but other than that, I've lived during pretty normal economic times. I can clearly see the signs of inflation reflected in the prices in my country, but nothing severe yet.
Bitcoin was created by Satoshi Nakamoto in the middle of a financial crisis, back in 2008 and according to the date the first block got mined, the blockchain is 13 years old today. The first blockchain ever to be created is over 10 years in existence and it hasn't been down once.
Goldman Sachs shows Bitcoin outperformed all capital markets in 2021Banca Generali, will enable customers to buy/sell and HODL #Bitcoin through their bank accounts in early 2022. Meanwhile Bitcoin is shaking its knees at a bit over $46,000. The fear and greed index shows 29 out of 100 points, which puts the public sentiment regarding Bitcoin to fear territory.
Worth noting is also the fact that, according to Blockworks, "Bitcoin miners have earned +$35 billion since Bitcoin was created", but if you pay attention to what's happening around miners nowadays you will notice that some of the mining companies are going public, some have VCs investing in mining equipment for them while not every Bitcoin is "for sale" anymore.
Miners can do more with their Bitcoin than just selling it these days and we're a bit over 800 days until the next halving. With $883,225,485,989 market cap for Bitcoin, that's not that easily to manipulate as it was back when the price floated at around €5,000 and Michael Saylor accumulating like a mad man, I'd say we're living whole different times than we did four years ago.
So, how will it do in a recession, in case one hits us?
To be honest I don't know, but considering that it was designed in the middle of a financial crisis and that banks are rushing to get things right to be able to deal with it, I'd say it might be the new safe heaven after all. Look at countries like Venezuela, Turkey and Nigeria where Bitcoin is playing an important role in storing value against inflation.
A recession is not only about inflation, or at least not just about inflation. It's more about earning less and spending even lesser due to fear and a constricted economy. Restaurants and traveling agencies are probably the most to suffer from a recession, or the companies selling all sort of gizmos that are not "actually vital". But Bitcoin is looking more like digital diamond.
Moreover, as we can see the case of Hive and other blockchains, especially the ones designed for gaming, these are good investments as you can generate yourself an income based of such investments, which would come at hand during constrictive times. So, is Bitcoin a good option as a store of value during a recession? Probably... and if we're gonna have one in the near future, maybe even more will realize its value as a hedge.
What do you think?
Thanks for attention,
Initially Posted Using LeoFinance Beta
