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

Mon, 09/17/2018 - 16:37
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  • Economists think 2020 will be bad for global economy, some name crypto as a way out

Cover image via U.Today

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.

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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.

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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.

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today, can be contacted at

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