on the crypto
Over the past few weeks, some negative signs have re-launched the hypothesis of one new recession. A hypothesis that, in light of what happened in the years following 2008, or the bursting of the Subprime mortgage bubble and the consequent freeze of the world economy, literally terrifies political institutions all over the world. The discussion that arose also affects the cryptocurrency, as many people consider them one possible answer to the lack of confidence in traditional financial systems.
The bomb represented by Deutsche Bank
If in 2008 the earthquake spread from the United States to the rest of the world, leaving it on the ground among others Lehman Brothers, the country's fourth largest investment bank, this time Germany could be the epicenter of a new earthquake. In particular, many indicate in Deutsche Bank a real mine placed in the heart of the global financial system. To make this hypothesis concrete is a simple fact: the German banking institution is burdened by the holding of derivatives equivalent to 15 times the GDP of Germany.
If it is true that other banks are also overburdened by one large amount of toxic titers, starting from Barclays (40,48 trillion dollars), JPMorgan with 40,34 e Citigroup (38,4), it is also true that the United States and Great Britain can proceed with counter-moves, in the form of restructuring and nationalization, capable of neutralizing the danger that Germany is absolutely prohibited, unless completely rewrite EU rules. Precisely for this reason the global financial circles look with open terror at the heart of Europe, even after the restructuring plan presented by the Teutonic bank ..
What would happen to Bitcoin and Altcoin in the event of a recession?
The question that many analysts ask themselves, contemplating the hypothesis of a new recession, can only be the following: what would happen to digital assets where the economic and financial cycle creates such a confusion as to push savers and speculators to look for alternatives to invest in?
An initial response in this regard provides it Jemma green, co-founder and president of Power Ledger, stating that a current of mistrust towards current accounts, stocks and other traditional financial instruments could push many towards those cryptocurrency which are now considered to be a fairly safe haven, naturally starting from Bitcoin see how to buy bitcoins.
However, this thesis is not convincing Leigh Travers, the CEO of DigitalX, according to which in times of recession all assets, including those considered safe-haven assets, are subject to massive sales. As indeed happened to gold, in the period between March and November 2008, when its price dropped from 31,633 to 23,802 dollars.
The role of the dollar
Another factor to take is the one represented by dollar, which could be an attractive alternative. Also in this case it is what happened in 2008, in the period between August and October, which constitutes a reason for reflection. During that time, in fact, the greenback revalued itself Present in several = 15,5%, demonstrating that in the end not all scenarios, in the event of a global crisis, are actually predictable.
