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Will global economic collapse boost crypto?


GDP projections in different countries are the order of the day. Resounding falls are expected, such as that of the Eurozone, which according to estimates will be 8.7% in 2020. The United States at the time of writing falls 5%, which suggests that we are in a scenario of a possible economic collapse world.

Prolonged quarantines in Europe and America are wreaking havoc on the world’s economies. It is very difficult to find someone to save himself, at least in the short term.

In this very adverse scenario, cryptocurrencies can be a great opportunity to safeguard money.

Cryptocurrencies as a lifeguard

At this point it is difficult to doubt that cryptocurrencies are here to stay. Its main advantage is that you are in control of your money at all times, nobody can take it.

Their “downside” is that they are very volatile and can jump in a minute. It can be said that they are not suitable for “nervous” investors. Now there is a low risk solution: Stablecoins.

Returning to the subject of the world economy, where the great powers of the world are going to have double-digit falls, it is a time to reflect on how to preserve our savings.

In the graph below you can see the GDP estimates of the European countries. As you can see Italy will fall 11.2%, followed by Spain with 10.9%. For its part, France expects a fall of 10.6% and the United Kingdom of 9.7%.

Estimates of the GDP of European countries. Source: CincoDías

There is no economy that saves from falling in the euro zone, the same happens in all America, and I dare say almost in the whole world. In this context, it is necessary to be very cautious where to place the money, since few assets seem safe, at least for the rest of 2020.

Undoubtedly in this complex scenario, cryptocurrencies can be a lifesaver.

Are we at the door of a new world order?

Absolutely not. We are already entering the new world order. Everything will be rearranged, whether we like it or not. Reflect on some of the following questions…

  • Do you shop the same way at the supermarket?
  • Can you go to a cinema, theater?
  • Do you turn on the TV and all the time is Coronavirus and bad news?
  • Do you have to wait in line to buy a Coca Cola?

The list can go on and on … Everything has changed, and it won’t be for a short time. At least until there is a vaccine on a global scale, and we are far from that. Nor think of a solution in 2020.

I say goodbye until tomorrow with this phrase by Robert Kiyosaki:

The emotion of winning must be greater than the fear of losing. “

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