Hi! Today from London! Today we will talk about how will crypto market behave in the global financial crisis. See you in the next part.
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When you watch the predictions I gave some time ago (I will connect them here and below this video).
You will know that I predicted a global financial crisis this year.
And in comments / via email I got questions how the crypto market / Bitcoin would behave in global financial crisis?
What would be the effect / impact on the crypto world / crypto market of this crisis?
And in this video I will answer these questions and tell you what aspects do we need to look at, what aspects do we need to consider.
First of all, historically, in times of uncertainty people flee from risky assets into safe assets.
Historically they were fleeing into real estates, gold from the stock market, from maybe cash because they were seeing it as more safe and stablee.
And there is this conception that Bitcoin gold like. Actually I have shown to you that Bitcoin is much harder money than gold is.
In the video "Bitcoin vs Gold" that I will attach here and you will find the link below this video
You will find the explanation why it is so. Bitcoin has zero production elasticity in comparison to gold that has very low production elasticity
But still has a positive production elasticity and you will know what it means when you will watch this other video.
But generally, economically Bitcoin is much harder money than gold.
So, actually when you take it rationally, in times of uncertainty, in times of financial crisis people should flee from any asset into Bitcoin
Because this is the hardest money. Even from gold into Bitcoin; from real estates, from, of course, stock market, cash and so on...
But the thing is Bitcoin doesn't have the perception of safe money. Bitcoin has the perception of risk, of risky asset.
So, in reality we may see the mainstream flee away actually from crypto into other assets like real estate or like gold in crisis.
Of course, the people who undeerstand the economics of Bitcoin, they would go the other way.
But it doesn't mean the mainstream will do it because people take the decisions based on their knowledge and their perception.
Their perception of gold is safety, but their perception of Bitcoin or crypto is risky.
So, this is something we have to take under consideration.
On the other hand crypto has bleeded already 90% of its value. The market cap of the crypto markeet has lost 90% of its value.
That means that crypto has gone down a lot already. So, it may happen that in the crisis it won't go down anymore.
And people will not believe that it will go down more. So, they may consider crypto or Bitcoin in particular as a better option to invest; or safer option
Because they may think it may not go down anymore.
Because the fall of crypto preceded the fall of the stock market.
So, this is the other aspect we need to think in the psychology or in the dynamics of the market.
And the next aspect we need also to understand is the following.
It will be very dependent on the moment that we see the crisis really hit. We don't have this urgent crisis / severe crisis right now
It's not like we got into hyperinflation right now. There is of course some of the stocks like Facebook, Apple... they lost a lot of value.
Or they lost a lot of market cap. But generally there is no panic on the market, like Black Friday and stuff like that.
Not yet! But when this moment comes and there will be a moment like that, where you'll say "Ok. This was the day when the crisis hit, the crisis really started
Then it is important in what moment the crypto market is. Is it in a downward trend or is it in an upward trend?
Because depending on that there will be a mood or the impulse, the momentum for the movement of the money.
If crypto in that moment is in the upward trend, then we will see the money go into crypto.
When we see the crypto market inthe downward trend at that moment and that day, then we may not see money going into crypto
Because the perception at that moment will be that crypto is also in the crisis, is also affected by the crisis and this not safe asset
And there is no sense to go into crypto to sava your wealth.
And then the last aspect that we have to consider is that actially the later the crisis hits, the better it is for crypto. Why?
Because right now we have this consolidation phase. Right now, when it may go down a little bit more
But the closer it is to the halvening of Bitcoin, the more probable it is that the crypto market will take off.
So, this upward trend is more probable. So, if you are a crypto investor or crypto enthisiast.
In your place I would pray for the global financial crisis to come as late as possible. To come in November, December 2019
Maybe even not come at all in 2019. Maybe to come in 2020, maybe in the middle of 2020.
This would be the best for crypto, because then we would see, first of all, the run up to the halvening of Bitcoin, which would be a positive impulse.
The market will go up. So, we will have a positive trend and there will be expectation of more growth to come.
And of course, the inflation will be lower and lower in Bitcoin meaning that the later the crisis come,
the more probable it is that the assets will move into crypto from the other assets, from stock market, cash, from maybe even gold.
So, the later the global financial crisis, the better it is for crypto, the more it probable that it will positively impact the crypto price and crypto market
That's it for today from London. I invite you to comment. What do you think about the impact of global financial crisis?
What impact may it have? What are the indicators? What are the phenomenons we should look out? Maybe the signals we should look out?
Tha market events we should look out that may impact how the crypto market will behave in the case of the global financial crisis.
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I talk here a lot about cryptocurrencies, money, economy. I talk also about how the best entrepreneurs, the self-made billionaires in our world think and act
How to do great, big, impossible things in life and business.
So, if you like these topics, you like this video, you will like my other videos. I invite you to watch them. That's it for today from London.
I wish you a fantastic day today, let's do something extraordinary today!
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