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This copy is for your personal, non-commercial use only. The chatter surrounding the timing of the next recession is only getting louder , with two-thirds of economists now predicting that we will see some sort of economic downturn by the end of This new, decentralized asset class was born at the tail end of the housing crisis, and has yet to experience the full force of a recession or even lengthy bear market. What I can say with certainty, however, is that few industries will have more to learn and more to teach: because not all 2, cryptocurrencies are alike and, as such, not all 2, cryptocurrencies will respond the same way to market pressure.
For years, digital assets have existed in a period of market expansion in the United States. As a result, many have erroneously assumed all digital assets are functionally interchangeable, and will all react the same way to economic fluctuations.
As is the case with any industry, companies weathering the impact of a severe market correction are, understandably, going to react differently based on their business models, leverage, and market capitalization. Faced with a recession, Bitcoin may serve a market function similar to that of a safe-haven commodity, rather than an equity, due to its inherent scarcity and decentrality.
Bitcoin, by design, is not intended to be used as a foundation on which developers could build a platform or enterprise. By contrast, Ethereum is far more likely to follow market trends.
If the investors suffer, the companies suffer, which causes Ethereum to suffer as a result. Unlike Bitcoin and Ethereum, Ripple digital currency is frequently used for frictionless financial asset transfers, functioning more as a medium of exchange than other digital assets. If Ripple loses usership—either because its issuance was mismanaged or because other projects such as J.
So what does this mean for the long-term future of digital assets? Recessions are evolutionary bottlenecks in the world of modern economics—where weak projects expire, strong projects prevail, and industries become more resilient as a result. Although the surviving pool of companies will be smaller, it will also be less crowded and filled with more substantive projects. Whether or not a recession lurks around the corner, the digital asset industry is overdue for a moment when users begin to recognize projects for their unique value propositions, not just their existence in the larger crypto market.
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Bitcoin during recession. A Global Recession Is Coming How Will It Affect Bitcoin? Between the US China trade war, the Venezuelan hyperinflation crisis, and stock markets crashing, it's obvious that an economic Some people have suggested buying gold and Bitcoin during a recession. However, while the price of gold has proven relatively