0
📰 News
84 views

2020 Can Be Harsher Than 2008 Crisis, Banks Will Have to Grab Bitcoin or Suffer: Economists

  • Yuri Molchan
    📰 News

    Economists think 2020 will be bad for global economy, some name crypto as a way out


2020 Can Be Harsher Than 2008 Crisis, Banks Will Have to Grab Bitcoin or Suffer: Economists

Several prominent economists, including Nouriel Roubini from Stern School, predict a large recession to crash US markets within two years. However, some of them see crypto as a store of value that could soften the blow.

Trump administration will push it

In a recent interview, Roubini gave about ten primary reasons that may cause the coming crisis of the banking system and the financial markets. One of them is the growing FED inflation rate and lack of understanding between President Trump with China, Canada and other major trading partners of the US.

The current situation may get worse

Even though several countries like Venezuela, Argentina, and Turkey are suffering a hyperinflation and deep monetary crises, crypto coins are currently what their residents are using at the moment. This is in spite of the current bearish crypto market which has lost over 80 percent of its value in 2018.

👉MUST READ

Zimbabwe’s Broken Economy Forces Country to be a Cryptocurrency World Leader?

Zimbabwe’s Broken Economy Forces Country to be a Cryptocurrency World Leader?

The major economies and their fiat currencies, like the US dollar, Chinese Yuan, etc, are still stable. They are backed and controlled by the central banks. However, a quick inflation surge and economy overheating could make their stable currencies lose their value and plummet.

Roubini believes that the situation may get worse due to US financial debt which keeps growing and this is now can be seen in the rise in basic economic figures, like mortgage and student loans, debts on credit cards. This could make the 2008 crisis seem kids’ stuff next to what makes a break out in 2020.

How crypto can be useful

Judging by the rate at which major banks, like Morgan Stanley, etc, are exploring digital assets, it seems that institutional investors are trying to find financial tools that may help them avoid any big recessions in the future.

👉MUST READ

Can China Fully Crush Cryptocurrency?

Can China Fully Crush Cryptocurrency?

Anthony Pomplano, a founder of Morgan Creek Digital, reckons that big institutional investors will have no option by invest in electronic coins to get an alternative to conventional financial tools, which are tightly interconnected with global financial markets and may suffer once the latter collapse.

He believes that the threat of one more global finance recession will accelerate institutional funds flow from traditional markets into the crypto industry.

Cover image via u.today
Subscribe to U.Today on Twitter,and get involved in all top daily crypto news, stories and price predictions!

About the author

Yuri loves technology and gadgets. He has worked in crypto since 2017. Was quickly ‘converted’ into the ‘faith’ of crypto, believing that blockchain and cryptocurrencies will transform the world in the future. ‘Hodls’ Bitcoin and several altcoins.
He has worked for several Telegram channels, writing about DLT and cryptocurrencies. Currently is a news writer, covering crypto and blockchain-related topics.

👓 Recommended articles

This site uses cookies for different purposes. Please set your preferences in Cookie Settings and visit our Cookie policy for more information on how and why cookies are used on this site. Click here for cookie policy

Cookie settings