Bitcoin (BTC) and all other cryptocurrencies in the crypto space have been subject to either support or otherwise, although the enthusiasts of cryptocurrency are optimistic that its system has the ability to save the world from the upcoming global recession.
As global economy pessimists believe that financial crisis is possible any moment from now. International monetary fund (IMF) is at the forefront of the imminent global economic disaster due to the instability of the world’s economy caused by rise in debt level and slow growth of Gross Domestic Product (GDP).
The last global recession was in 2008 and the rate at which money is borrowed from the financial system could fast-track another collapse of macro-economy, even in large proportion than the last the world experienced.
According to a report, the former president of the Federal Reserve’s Minneapolis arm, Narayana Kocherlakota, warned his ex-employee during an opinion session on a popular media to prepare for a possible economic crisis.
Chances of Bitcoin (BTC) saving the world from possible global recession
Erik Voorhees, the CEO of Shapeshift, known to be one of the leading cryptocurrency exchange in the world, recently said in a tweet that Bitcoin (BTC), the largest digital asset by market cap, might be the escape hatch from the imminent global economic crisis.
There has never been a global recession since Bitcoin was created. Next time it happens, there is an escape hatch. https://t.co/XmwcCcuSU9
— Erik Voorhees (@ErikVoorhees) April 16, 2019
The fact that Bitcoin (BTC) is a decentralised currency; this gives it ability to excel without the infiltration of centralised systems and authorities. In a time like this, there are chances for the world to see cryptocurrency as the last resort since it is devoid of the third party (government), giving it absolute control of its financial assets.
Travis Kling’s thought on United States monetary policy
Although the global economy looks stable at present, but there are signs of anomalies within the financial system as United States, the world’s economy heavy-weight reportedly piles up its debt running to 1 trillion dollars for the second successive years.
Travis Kling, Founder & Chief Investment Officer of Ikigai Asset Management, gave his opinion as global economic doom approaches by saying that Bitcoin (BTC) could be seen as a risky asset presently, but its risk asset possesses specific set of investment characteristics, giving the digital asset (Bitcoin) boosts of adoption with the increase in the U.S. & global irresponsible monetary and fiscal policies of centralised system.
In conclusion, Bitcoin (BTC) would rather benefit than being in the losing side as governments (especially U.S.) continues to face financial deficits. BTC and other cryptocurrencies are bound to gain prominence if the predicted global recession occurs as big businesses of the world are expected to make a decentralised system their abode.