Why the Bitcoin Crowd Misjudges the Impact of the Coming Recession

by | Sep 22, 2023 | Recession News | 31 comments

Why the Bitcoin Crowd Misjudges the Impact of the Coming Recession




#bitcoin #crypto #cryptocurrencies
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00:00 – Intro
00:50 – Bitcoin Price Analysis
01:49 – The Biggest Event In September Happens Today…
02:20 – Ethereum & Altcoins Continue To Weaken
03:40 – Apple & The VIX Sends Major Warning Signal
05:00 – Many Have Ignored The Reality…
08:18 – Don’t Bet On QE5 Coming Soon
09:58 – Unemployment Is On The Rise
14:21- Yield Curve Is Continuing It’s Rise
16:53 – What Many Don’t Realize About The CPI
19:20 – Closing Remarks

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Why The Crowd Is Wrong About Bitcoin & The Coming Recession

Bitcoin, the world’s first and largest cryptocurrency, has been the topic of much debate and criticism since its inception. Detractors often argue that Bitcoin is a bubble waiting to burst, while skeptics claim it is only a tool for criminals and money launderers. However, as we approach what some experts predict to be a global recession, it is time to shed some light on why the crowd may be wrong about Bitcoin’s potential role in the upcoming economic downturn.

First and foremost, it’s important to understand the unique characteristics that make Bitcoin different from traditional forms of currency. Bitcoin is decentralized, meaning it operates without the need for a central authority, such as a government or financial institution. This decentralized nature ensures that Bitcoin is not affected by the same economic and political factors that impact traditional currencies. As a result, it has the potential to thrive in recessionary environments where central authorities may struggle to maintain stability.

Another reason why Bitcoin may benefit from an economic downturn is its limited supply. Unlike fiat currencies that can be endlessly printed, there will only ever be 21 million Bitcoins in existence. This scarcity effectively protects Bitcoin from inflation, a common problem during recessions when governments tend to print money to stimulate economic growth. As people lose faith in traditional currencies, they may turn to Bitcoin as a store of value and a hedge against the devaluation of their assets.

Additionally, Bitcoin’s utility extends beyond a mere medium of exchange. Its underlying technology, blockchain, offers significant potential for improving efficiency and reducing transaction costs across various industries. During a recession, businesses are more likely to seek cost-saving measures, and blockchain adoption could become increasingly appealing. This increased adoption would further solidify Bitcoin’s position as a viable alternative to traditional financial systems.

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However, it is important to acknowledge that Bitcoin is not entirely immune to recessions and market volatility. Its price can also be subject to fluctuations, driven by speculation and market sentiment. Nevertheless, the underlying value and potential of Bitcoin remain intact despite short-term price movements. By focusing on the long-term benefits and fundamentals of the cryptocurrency, investors can see beyond the noise generated by the crowd and make informed decisions based on its unique qualities.

In conclusion, the crowd may be wrong about Bitcoin’s potential during the coming recession. As global economic uncertainties and currency devaluation loom, Bitcoin’s decentralized nature, limited supply, and utility in cost-saving blockchain solutions make it an attractive option for individuals and businesses seeking refuge from traditional financial systems. While Bitcoin is not without its risks, its potential to thrive in a recessionary environment cannot be denied. As the world braces for the oncoming storm, it might be time to rethink the crowd’s negative stance on Bitcoin.

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31 Comments

  1. radicalprolapse

    Nick, there are other ways to take money out of the economy and halt inflation. Rising interest rates is a blunt tool that as always will be used to discipline and decimate the middle and working classes. Tax capital gains, banks, energy companies, tax the wealth of those with obscene amounts of wealth, let's say above 50 mill. There are other ways if you're willing to think outside the neoliberal box we've been conditioned to believe is the only possibility.

  2. zlomki

    No pain, no gain!

  3. Carol Sun

    SEC should give the ETF applicants a question list. The applicants will definitely find solutions to those questions. Problem solved. Then approve!

  4. YesIndeed

    YesIndeed

  5. fleshpistol

    Appreciate this channel, I get sad seeing all the people that are bullish and think money printing will happen not realizing that if that happens and the market keeps going up that the middle and lower classes will get destroyed. The only way we go up is by destroying middle class. That could be the goal to destroy small businesses and people but it makes me sad when people are bullish in these environments. This feels like right before the dotcom bubble when everyone was being dumbos.

  6. Hugh Markwick

    Nick, George from CryptosRUs said you were sad and angry and probably lost a lot of money, which is why you are so bearish. Your response?

  7. Louie de Pointe

    I consider your opinions more honest and well educated, than contrarian, and thanks!

  8. Bucky

    What are ur thoughts on Harry Dent’s recommendations of long term bonds (TLT) as a great investment during this time.

  9. mike2208

    How much of the oil inflation is down to the recent limitation of production

  10. Manmauji

    So we are doomed

  11. Niels Jacobs

    Hi Nick, been following you since 2018. Could you make a video on how to protect your money/assets during a recession and being able to use that funds again when the recession is over and the macros are more positive?

  12. CougarLove

    If the FED reverses that means something big has broken and everything will dump. Look at the past charts and compare what really happened when the FED pivots. This could very well happen this year. Feels like a black swan because the US and Europe and China are a bigger mess than ever. We will see, be prepared.

  13. Pinhead650

    With regards to interest rates continuing to rise long-term. Do you think the Fed will allow the US government to default? The fiscal crisis is building exponentially due to the rapidly rising interest rates. More than $7 TRILLION US government debt will mature in the next 12 months and with interest payments on the debt already being the largest line-item on the federal budget, I have a stinking suspicion there will be quite a bit of political pressure to lower rates…

  14. Menni

    2020 wasnt an anomalie. Yield curve was inverted, so a recession was predicted already, Covid just triggered it. So you aren't right on this one!

  15. fadwa B.

    I believe the FED is fighting "the fed put", so I agree with you, we can't expect the FED to rescue us any time soon.

  16. Bóris Couto

    In a perfect world the FED does not exist and that is why DCA in Bitcoin is the only solution left to small and invisible people. 61% of americans living paycheck to paycheck… We must DCA in Bitcoin with OUR FOOD MONEY – The FED forces us to the PERFECT DIET.

  17. mthnsrk

    Day by day I am addicted to your analysis… keep updating us… good job bro

  18. JA. Digital

    take care pal!

  19. Ronbo Omega

    Last month the cpi numbers were better than expected, yet crypto didn’t do anything. It’s all manipulated.

  20. 420Hezzi

    Ah man I hope there's still a short opportunity somewhere

  21. Marco

    But, i say the fed have to lower the rates because we will see an big Accident (banks)

  22. Terept

    Appreciate the honest analysis as always brother! Is it time to short Bitcoin?

  23. Mr Bud

    Great video.

  24. Tim H

    You’re on the right track but are about 2-3 years early. Second half of decade is what to watch out for. Once everyone is all-in during this next phase of the bullrun. We haven’t lost support since 2009.

  25. Royal Crypto

    Nick you are the best analyst

  26. Eric Natapradja

    You're calling it too early. The macro is still too the upside. No recession until this cycle keeps moving higher and you'll get your major recession in a few more years. I remain bull.

  27. Philippe Colin

    Excellent as always, all this makes good sense, thank you Nick

  28. John Milton

    The effect of bricks, is to be taken into account. The dollars defence is to become expensive so that developing economies sink under the strain.

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