Daily Afrika News
Advertisement
  • Home
  • News
    • South Africa
    • World
    • Africa
    • Entertainment
    • Green
    • Health
  • Elections 2019
  • Voices
    • Columnists
    • Books
  • Business
    • Markets
    • Personal Finance
    • Economy
    • Opinion
    • Small Business
    • FinWeek
  • Sport
    • News
    • Rugby
    • Cricket
    • Soccer
    • Golf
    • Tennis
    • Formula1
    • Other Sport
    • Super Sport
  • Lifestyle
    • Health
    • Women
    • Motoring
    • Food
    • Entertainment
    • Parent
    • TrueLove
    • Travel
  • Video
    • All Video
    • South Africa
    • Entertainment
  • Focus
    • Underworld Unmasked
    • Mandela100
    • Cyril100
    • Zimbabwe
    • Aids Focus
    • Good News
    • Competitions
  • Jobs
  • Property
No Result
View All Result
Dailyafrika.com
  • Home
  • News
    • South Africa
    • World
    • Africa
    • Entertainment
    • Green
    • Health
  • Elections 2019
  • Voices
    • Columnists
    • Books
  • Business
    • Markets
    • Personal Finance
    • Economy
    • Opinion
    • Small Business
    • FinWeek
  • Sport
    • News
    • Rugby
    • Cricket
    • Soccer
    • Golf
    • Tennis
    • Formula1
    • Other Sport
    • Super Sport
  • Lifestyle
    • Health
    • Women
    • Motoring
    • Food
    • Entertainment
    • Parent
    • TrueLove
    • Travel
  • Video
    • All Video
    • South Africa
    • Entertainment
  • Focus
    • Underworld Unmasked
    • Mandela100
    • Cyril100
    • Zimbabwe
    • Aids Focus
    • Good News
    • Competitions
  • Jobs
  • Property
No Result
View All Result
Dailyafrika.com
No Result
View All Result
 
Home Voices Columnists

Will This looming Recession Sink the Cryptocurrency Market?

With a total market cap that is less than Amazon’s, the cryptocurrency market pales in comparison to global stock markets, which are valued somewhere north of $60 trillion.  

Will This looming Recession Sink the Cryptocurrency Market?
by C'indy Bossmann, contributor August 16, 2019
Related Articles
OPINION: Why Highlands Park can lift the MTN8 trophy against SuperSpor
Mugabe is dead, but old men still run southern Africa
Robert Mugabe: as divisive in death as he was in life
Ethiopia government can no-longer protect its citizens

Recession – In a tumultuous day of trading, the Dow crashed by 800 points, yesterday, as an ominous recession indicator came to life. For the first time since 2007, 10-year bond yields dipped below 2-year bond yields. Will This Looming Recession Sink the Cryptocurrency Market? Crypto Magazine 

For the record, every time that happened in the last 50 years, a recession followed. We’re the first ones to say that past performance doesn’t indicate future results, but hey, you’ve got to admit that’s a pretty rockin’ track record.

It isn’t just the US standing on the cusp of what seems like an impending recession. Bloomberg had this to say in wrapping up the world’s financial woes:

“China reported the weakest growth in industrial output since 2002. Germany’s economy shrank as exports slumped, and euro-area production plunged the most in more than three years as the overall expansion cooled.”

So, yeah, not looking too hot out there. What does it mean for the cryptocurrency market? Yesterday, BTC dropped below $10,200 while ETH, XRP, EOS, TRX, XTZ, and several other blue chips fell off the proverbial cliff. For anyone who is keen to think that crypto markets are decoupled from traditional markets – think again

At a very fundamental level, the fortunes of all markets are tied together by whichever is the true hegemonic power. While we love crypto, it would be an outright lie for us to claim that digital assets assume more importance, economically speaking, than traditional global markets. With a total market cap that is less than Amazon’s, the cryptocurrency market pales in comparison to global stock markets, which are valued somewhere north of $60 trillion.

Bitcoin is just a drop in the bucket compared to the squidzillions at play in the bigger picture around the world. For those of you who, like us, are living and breathing crypto every day, this may be a hard fact to accept. However, being aware of it will strengthen your position and keep your hand steady. There is nothing financially worse than being caught by surprise.

BTC may act as a store of value during a recession

Bitcoin was born along with the last global recession back in 2008. Satoshi understood the ill effects of centralized finance and knew that bankers were sending the world economy straight for the dumpster.

While the Great Recession hit hard in countries around the world, BTC gained notoriety at first, and then real value right around 2013, when signs of relief from the recession first flickered. The rest of the digital asset market as we know it today emerged during a period of economic expansion and rebuilding in the US, Asia, and many European countries.

As such, the cryptocurrency market hasn’t faced a real recession, so predicting how it will react to a global economic downturn is more or less impossible. However, without recession fears at hand for last year and most of this one, altcoins have performed dismally. It’s highly doubtful that a downturn of the kind anticipated will help matters on that score.

Bitcoin, on the other hand, may perform better than expected. Safe-haven assets like gold and bonds have rallied in recent days. In 2008, the USD jumped nearly 20% against other currencies. Can Bitcoin make a safe-haven case?

Well…“Bitcoin is a remarkably stable and reliable store of value” said no one ever. With all due respect to Anthony Pompliano, it’s possible to be bullish on both Bitcoin and reality.

Look, we definitely puff puff pass the crypto hopiu. But believing that people everywhere will suddenly flee for safety into an asset class based on bleeding edge tech defies reason. Then again, if Bitcoin has done anything well over the last decade, it’s defy reason.

Bitcoin’s drop yesterday was understandable. If someone says recession, everyone jumps back. The coming weeks and months will be crucial, though. Do we trend higher as hopes for the global economy sink further? That’s for time to tell.

AmazonBitcoinCryptocrypto currenciesCrypto MagazineCrypto MarketCryptocurrenciesRecession
Previous Post

Zimbabwe police beat protesters defying ban

Next Post

Botswana’s Dr Matshidiso Moeti to be re-elected WHO Africa regional director

C'indy Bossmann, contributor

C'indy Bossmann, contributor

Related Posts

UMEH Group Limited Completes Merger with DafriGroup PLC 

UMEH Group Limited Completes Merger with DafriGroup PLC 
Africa
by Deepankita Gujrey
28 June, 2021

JOHANNESBURG -  UMEH Group Limited, a household name in the media and hospitality sector announced that it has signed a...

DafriGroup Plc Announced Its Digital Banking Ambition; DafriBank, A su

DafriGroup Plc Announced Its Digital Banking Ambition; DafriBank, A sustainable platform for all digital problems.
Africa
by C'indy Bossmann, contributor
12 July, 2020

JOHANNESBURG -  With entrepreneurs and businesses bleeding technology the DafriGroup stirred up mixture of tech and resource to present to...

Jeff Bezos loses his crown as the world’s richest man, but gains it

Jeff Bezos loses his crown as the world’s richest man, but gains it back
Business
by Suvajit Banerjee
28 October, 2019

The dismal Q3 results from Amazon, resulted in founder Jeff Bezos slipping for a brief period from his position as...

Ramaphosa in London for Financial Times Africa Summit

Ramaphosa in London for Financial Times Africa Summit
Africa
by Takemore Chikwesa
14 October, 2019

President Cyril Ramaphosa on Sunday, October 13th arrived in London, United Kingdom, for the starting of a two-day working visit....

Zimbabwe increases electricity prices by 320 %

Zimbabwe increases electricity prices by 320 %
Economy
by Takemore Chikwesa
10 October, 2019

HARARE-Zimbabwe has raised its average electricity tariff by 320 % to allow it to ramp up production and improve supplies...

Buhari presents 2020 budget to Nigeria’s lawmakers

Donald Trump celebrates Nigeria's independence as it celebrates 59 years of independence
Business
by Onibiyo Bola Olajuwon
09 October, 2019

ABUJA: NIGERIA’S President Muhammadu Buhari has presented the 2020 budget proposal to a joint session of the country’s National Assembly...

Next Post
Botswana’s Dr Matshidiso Moeti to be re-elected WHO Africa regional director

Botswana’s Dr Matshidiso Moeti to be re-elected WHO Africa regional director

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Quick news

UMEH Group Limited Completes Merger with DafriGroup PLC ...

UMEH Group Limited Completes Merger with DafriGroup PLC 

DafriBank Saves The Day on Twitter...

DafriBank Saves The Day on Twitter

The Word’s First Coronavirus Vaccine Is Here...

The Word’s First Coronavirus Vaccine Is Here

DafriGroup Plc Announced Its Digital Banking Ambition; DafriBank, A su...

DafriGroup Plc Announced Its Digital Banking Ambition; DafriBank, A sustainable platform for all digital problems.

Most Popular

UMEH Group Limited Completes Merger with DafriGroup PLC ...

UMEH Group Limited Completes Merger with DafriGroup PLC 

DafriBank Saves The Day on Twitter...

DafriBank Saves The Day on Twitter

The Word’s First Coronavirus Vaccine Is Here...

The Word’s First Coronavirus Vaccine Is Here

DafriGroup Plc Announced Its Digital Banking Ambition; DafriBank, A su...

DafriGroup Plc Announced Its Digital Banking Ambition; DafriBank, A sustainable platform for all digital problems.
https://www.valr.com/invite/VAG38ZL3
  • About
    • Contact us
    • Privacy Policy
    • About Us
  • Useful Links
    • Markets
    • Personal Finance
    • Economy
    • Opinion
    • Small Business
    • Fin Week
  • Sister Brands
    • FX Magazine
    • MLM Magazine
    • Crypto Magazine
    • PlusSize Africa
    • Women With Class
    • DJ Mag Africa
  • Affluent Series
    • Affluent
    • Affluent Africa
    • Affluent TV
    • Affluent Radio
    • Affluent Sport

Published by UMEH Media All right reserved.

News, analysis, opinions, sports, question and discussion – as a people and as a continent – with the rest of the world, especially the Western world, in ways cultural, economic, political, social, psychological or historical. Daily Afrika is managed by an African crew, with a network of mostly African writers across the continent and in the diaspora. Developed By: DeDevelopers
  • Home
  • News
    • South Africa
    • World
    • Africa
    • Entertainment
    • Green
    • Health
  • Elections 2019
  • Voices
    • Columnists
    • Books
  • Business
    • Markets
    • Personal Finance
    • Economy
    • Opinion
    • Small Business
    • FinWeek
  • Sport
    • News
    • Rugby
    • Cricket
    • Soccer
    • Golf
    • Tennis
    • Formula1
    • Other Sport
    • Super Sport
  • Lifestyle
    • Health
    • Women
    • Motoring
    • Food
    • Entertainment
    • Parent
    • TrueLove
    • Travel
  • Video
    • All Video
    • South Africa
    • Entertainment
  • Focus
    • Underworld Unmasked
    • Mandela100
    • Cyril100
    • Zimbabwe
    • Aids Focus
    • Good News
    • Competitions
  • Jobs
  • Property