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Does anyone think these cryptocoins will hold value during, in, and through the next recession?
by notadoc 9y ago
Does anyone think these cryptocoins will hold value during, in, and through the next recession?
- alyx 9y agoDepends on the recession type.
- notadoc 9y agoImagine a repeat of 2008, what do you think would happen in that scenario?
- nodesocket 9y agoI'm not sure actual economic events will have anything to do with a cryptocurrency crash. The price of bitcoin, ether really has nothing to do with overall economic prosperity. Also, I believe of lot of crypto currency is purchased in China as protection for them, and a truthfully a get rich scheme.
- notadoc 9y ago> The price of bitcoin, ether really has nothing to do with overall economic prosperity. You don't think the same economic policies that have driven all other asset values through the roof is also impacting cryptocurrency?
- zanny 9y agoThe next recession will not be caused by a loss of faith in cryptocurrencies, so probably. But the exchange rates will slip just as much as everything else in said recession because recessions are highlighted by a near uniform withdraw of capital from investment. On the flipside, btc usually goes up when gold goes up, and gold goes up in recessions. They might bounce back as an alternative store of value not dependent on the general economies functioning.
- notadoc 9y ago> On the flipside, btc usually goes up when gold goes up, and gold goes up in recessions. That's why I think a recession will be the defining time for bitcoin and other cryptocurrencies. Do they become more valuable in rocky economic times, like gold? Or do they plummet like any other speculative asset or high flying stock? The answer might depend on the severity of the recession and any associated turmoil.
- pmorici 9y agoIf you go to https://coinmarketcap.com/ https://coinmarketcap.com/ you will see they have info on over 600 individual crypto currencies. 99% of them are going to be worthless long term. Best case scenario a handful of them survive. I'd be extremely skeptical of any coin that distributes coins via an ICO or "pre-sale" instead of via competitive mining like Bitcoin.
- atomical 9y agoMining is a waste of energy. An ICO makes sense if they 1) have a product that benefits from a blockchain, 2) have a great team and a demo of their product.
- SkyMarshal 9y agoMining doesn't waste energy, it's the cost the network pays for security, and it usefully indexes the value of the token rewarded to miners for securing the network to their cost of electricity, grounding the token value in some hard-to-manipulate real-world value.