Will Cryptocurrencies Be the Savior of the World in the Economic Crisis?

Last Modified:12 May 2020 14:43:53
Will Cryptocurrencies Be the Savior of the World in the Economic Crisis?

There are different views on cryptocurrencies. Some regard them as a method for online commercial games and do not look upon them seriously. Some are waiting for an opportunity to make profits off of the turbulences of the crypto world, and some believe that cryptocurrencies can be the savior of the world in the economic crisis. There are rumors about the possibility of a recession and economic crisis in the world. However, can cryptocurrencies guide the world to safety in during such storms? The proponents of cryptocurrencies think that electronic money has a solution for most of the economic and commercial problems. However, is this really the case?

Governments and Guiding the Market

The phenomena known as loan and debt avoid the newer generations to step in a path called investment. With the development of the use of decentralized economic systems, the problem of debt will no longer exist, and the economic policymakers of the world cannot have an important role in guiding the markets. Currently, it is the large private institutes and governments that by controlling economic resources and making people make use of economic resources and go into debt and develop the debtor making a machine in the world. Governments, by increasing the loan giving system and creating debt among people and by increasing the taxes, gain income for themselves and have taken the real and free opportunity to invest from the world. Many problems in the world increase the possibility of another financial crisis the likes of which we saw in 2008. Different political tensions between U.S. and China, etc., the relationship of U.S. with other Middle Eastern countries, the possibility of inflation in different regions of the world, and many other things indicate a high possibility of another crisis.

Cryptocurrencies to the Rescue

The presence of a source of money and asset that is only available to the investor and its owner is the possibility that cryptocurrencies offer. There will no longer be supervision by institutes and governments on the control and management of cryptocurrencies. With respect to the possibility of a global economic crisis, more investors are thinking about entering the crypto market, and this will lead to the booming of cryptocurrencies such as Bitcoin more than before. The boom in this market is like the market of gold and precious metals and can protect people’s assets greatly in times of crisis.

Something that should not be neglected is the unstable turbulences of cryptocurrencies. Even though by showing enthusiasm toward the crypto market, the price and value of Bitcoin and similar cryptocurrencies will increase, but the lack of continuous stability means that in times of economic crises, investors still won’t have a safe margin. Anyway, investors and those who get caught in the tides of economic crisis should know that a percentage of their asset will have a sharp fall. Now, by evaluating the pros and cons of investment methods, investors should choose to invest in Bitcoin or precious metals.