Digital Assets, Bitcoin may be unaffected of recession.
Now days Bitcoin, also called the digital gold, is being compared to Gold. This is because many of the analyst has noted some weird similarities between the current Bitcoin’s and Gold’s trend way back in 2008. Bitcoin’s digital gold and safe haven narratives were questioned when it became correlated with traditional stocks. However after March 15th bitcoin has been recovering good and has reported a growth of 11%, while Gold reported a loss of 2%, and Oil remained down by almost 28%.
During the 2008 financial crisis people sold Gold and other assets in tandem, BTC’s recent sell off was almost similar to the same trend. Later in third quarter of 2008, Gold recovered from the 17% loss and ended the year with 3% profit. The analyst are predicting the similar trend for Bitcoin, with some researchers claiming the digital assets will not be affected if recession sets in.
Many people specially traders and analysts has a say that recession is making its ways. They believe that the recent sell offs of digital assets and high market crashes are the signs of recession setting in. However, the reason behind the selling of different assets was analysed to be for the different reasons. The selling of certain Equities, Gold and Credits were observed to be done under panic situation, while the digital assets were looked as a chance to buy at a lower price.
Token or digital assets can be used by companies with lot of ease. They can be used to raise funds and can even promise a token for future discounts, revenues and claims. This also depend on the location of company and the thought process of customers, means the companies with public equity and debit and bound by their customers and location. This is the reason that the process of digitising the world has been accelerated since the ongoing COVID-19 situation.