CoronaVirus good for crypto?
Please, don't misinterpret my title. I am not saying in any way that this health emergency is a good thing. The loss of human life is tragic no matter how you look at it for the most part.
I (and a lot of other people smarter than me) have been saying for a long time that a recession is potentially coming in 2020.
It also hasn't escaped my notice that when the stock markets are doing well cryptocurrencies tend to go negative. Likewise when the stock market takes a down turn, then crypto's seem to experience some gains.
I saw a headline just this morning that the Chinese stock market is taking a very large hit due to the recent issues in the country.
Trust me, I don't pretend to be an expert on any of this, but it seems to me that fiscal issues seem to have a ripple effect especially across the major economic powers in the world. Random fluctuations in the market are not uncommon, I think we all know that.
It isn't very surprising to us anymore when we hear or see that stocks had the largest gain one day and then they suffer their biggest loss the next. Things always seem to equal out in the end. That is part of the reason that so many people trust these markets for the majority of their retirement investments.
With the overall sustained gains that the US markets had been seeing for much of the past two years, is it impossible to think that this health crisis could have a far reaching impact on the markets of the world?
And, as I said, it always seems that when the traditional markets are suffering losses, crypto markets are seeing gains. I know there are a large number of economists, and economy enthusiasts on here. Heck, if you took a finance course in college you are probably more knowledgeable about this subject than I am.
What do you think? Will the Corona Virus be the catalyst that triggers a recession? Do you think the downturn in the Chinese market will boost cryptocurrency? Do you agree that a recession is even imminent? Given the last one in 2008 part of my finds it hard to believe anyone would let that happen again, but I also know that even in bad times someone stands to benefit...
Let me know what you think in the comments.
I am not an expert, and none of this by any means should be taken as financial advice.
