Can Bitcoin Become a World Currency in a Predicted Impending Global Recession?

  • Jack Thomas
    🤷 Opinions

    The word is that a global recession is around the corner, but could this be a perfect time for Bitcoin to make it big and come to the rescue?


Can Bitcoin Become a World Currency in a Predicted Impending Global Recession?
Contents

Currently, the tensions surrounding America and China’s relations have started to escalate fears that their coming together could spark off a global recession. President Donald Trump has said he wants to increase tariffs on Chinese goods, and China is not happy about this.

Based on Trump’s comments, a 10 percent tariff on another $325 billion dollars worth of imported Chinese goods could be increased to 25 percent by the first of June. Chief Economist Chetan Ahya of Morgan Stanley warns that this action could catalyze a global recession.

If this is to be the case, it would be interesting to see just how Bitcoin fits into the picture as a global, borderless and digital currency that is unaffected by any geopolitical events going on.

In fact, it could push a lot more people towards the cryptocurrency and thus, it could have a big effect on its price and the use of cryptocurrencies in general.

Using the economy as a weapon

The issue as its stands is that the dollar is considered a global currency with its value being tied to many areas that fall outside of its borders. This means that the dollar is extremely powerful across the globe, but also highly susceptible to changes.

If this war with China escalates further, the power of the dollar will start to feel the pinch, and for the first time in a long time, there is another global currency alternative – Bitcoin. Already there is evidence in China of an uptick in the buying of Bitcoin interpretation, but it could go global.

A new alternative

Bitcoin is a type of digital currency that, on a global level, is far more attractive and beneficial in times of geopolitical strife. A trade war with China is bound to have an effect on the economy, and as Chetan Ahya of Morgan Stanley warns, it could lead to a recession.

However, Bitcoin is removed from the general economy and its price would more than likely move in the other direction as people look to escape the economic downturn by snapping up as much Bitcoin as they can, and using it as a borderless currency.

There have been fears lodged that Bitcoin is a threat to the global sovereignty of the US dollar and could detract from its power. But, if the globe is forced into taking up Bitcoin because of a dollar that is under pressure, there can be no argument as to why this happened.

Cover image via 123rf.com
In this Telegram channel you’ll find fresh news, interviews, infographics, forecasts & other helpful stuff. Join U.Today's channel.

About the author

Jack Thomas is a journalist from Australia who has had a long career writing about finance and technology. He has combined his enthusiasm for these two subjects and applied his writing to covering blockchain and cryptocurrencies in the past few years.

👓 Recommended articles

Ripple’s XRP Price Struggling — Is This the End as Max Keiser Predicts Facebook Coin Will Take Over?

  • Darryn Pollock
    🤷 Opinions

    ❌👊 XRP’s price has failed to kick on — is there too much competition as Max Keiser predicts Facebook Coin to make it obsolete?💁‍♂️⚒


Ripple’s XRP Price Struggling — Is This the End as Max Keiser Predicts Facebook Coin Will Take Over?
Contents

While the cryptocurrency markets have been down of late, there has been very little to be excited about from a Ripple point of view. The company’s XRP token has failed to kick on during the cryptocurrency spring, and maybe it is down to losing its niche.

There is a bigger and bigger drive for coins that accomplish what XRP does, and despite being one of the first, there is major competition emerging from big companies like JPMorgan, as well as now Facebook.

Max Keiser, a well-known cryptocurrency commentator, has said he believes Facebook’s hugely hyped GlobalCoin will do away with the need for hundreds of altcoins, including XRP. It remains to be seen if GlobalCoin will hit the same niche, but it does feel like it has a chance.

A cryptocurrency killer

There are hundreds of cryptocurrencies currently on the market, and not many would argue against the fact that many are not needed and a bit of a waste of space. There are niches which have a lot of competition, like the smart contract blockchains of Ethereum, Cardano, NEO, etc.

Ripple’s XRP solution to cross-border banking payments is a well known cryptocurrency, but is still just a startup and a minnow in the eyes of JPMorgan and Facebook.

Keiser is a big believer in Bitcoin, but not as fond of the massive altcoin market behind it.

Should XRP be worried?

Keiser has a point about the power of a coin backed a company of the magnitude of Facebook, but he may be stretching things a little with GlobalCoin’s reach.

XRP’s niche is, and always has been, towards banks and making partnerships there. On the other hand, GlobalCoin will be a broad token, but one targeted at individuals rather than businesses.

Questions continue to be asked about the interoperability of blockchains, and perhaps that is where this arms race will be headed. XRP can be a banking solution, and GlobalCoin one for the people, but there should be a drive to be able to get them to work seamlessly together.

Cover image via www.freepik.com
Subscribe to the official U.Today Telegram channel. Get news first!

About the author

Darryn Pollock is an award winning  journalist from Durban, South Africa. He picked up Vodacom’s Regional Sports Journalist Award in 2017 while expanding his Blockchain and cryptocurrency reach.  He is a contributor to Forbes, Cointelegraph, Binary District, and of course, U.Today. Darryn’s belief is that Blockchain technology will be the driving force of the next technological wave and it is the obligation of journalists and writers to tell its emerging story with integrity and pride.

👓 Recommended articles