Appeared after the financial crisis of 2008, bitcoin was conceived by Satoshi Nakamoto and his company as a means to change the global financial system to reduce dependence on national banks.
Ten years have passed and we seem to be on the verge of an economic storm again. Economists and financial experts talk about negative bond yields, low-interest rates, and low Bank equities, and they suggest that this points to a coming downturn that could be regional or global in scale.
The question of how much bitcoin and cryptocurrency, in general, can affect this process becomes relevant. Investors are divided into two camps: those who are ready to wait out the storm in the Safe Harbor of cryptocurrencies and those who are waiting for the imminent depreciation of digital assets.
Meanwhile, even some optimistic representatives of the crypto elite are seriously discussing the possibility of a recession. Among them, the co-founder of Morgan Creek Digital Anthony Pompliano and founder of Global Macro Investor Raoul PAL. The latter wrote in a Twitter post that the European Central Bank and other financial institutions do not have enough funds to prevent the coming recession. There are also those who believe that a possible recession is not catastrophic, but rather cyclical and does not see anything out of the ordinary.
Feedback head of analytical Department TiB fund () Edgar Jansons is quite conservative: “Chiba’s Clients know our position on this matter. Even if we accept the possibility of a formal beginning of the recession, it is not necessarily that it will be comparable to the scale of 2008 or 1929. There are many factors that are part of the economic cycle, so it is possible that we will simply experience another peak and decline.”
The TIB Fund is engaged in crypto-Analytics and experts of the company conduct constant monitoring of the market. As for crypto assets, for them, the world recession is likely to become a supporting factor. Cryptocurrency appeared in response to distrust of existing financial systems, so the lack of positive sentiment in traditional assets can lead to an increase in crypto assets as a viable investment, especially given the recent increase in the market value of a number of large coins. Bitcoin should not be considered a potential panacea, but the trend of growing importance of cryptocurrencies as a means of investment is gaining momentum, and this must be recognized.
Against this background, the history of the dollar looks very interesting, when during the crisis of 2008 the price of US dollar increased by 15.5% against the basket of other international currencies in the period from August 1, 2008, to October 22 of the same year. This suggests that among conservative investors there is still interest in the dollar as a potential “refuge”. However, it should be understood that in the case of depreciation of world currencies and uncontrolled printing of money, the traditional flight into cash may not take place. In this case, the prospects of bitcoin look quite encouraging.
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