Global Recession has been seen to be the root cause for the betterment of Bitcoin. The global economic crisis has been the major hit in the economic market leading to the increase in the acceptance of digital currency in the countries affected by the inflation. Global economic crisis could be emerging as per the micro trends. It is believed that if a global recession will ever hit a country, cryptocurrencies like the Bitcoin would be benefited a lot.
It has been believed by many that if the inflation continues then several cryptocurrencies, especially the Bitcoin will be highly accepted all over the world. The movement of replacing the national economy of the countries with the digital currency has already started in many parts of the world and in rest of the world it is raging like anything.
As per the significant decline in the economic market, global recession in the traditional markets could bring in excessive contraction of Dollar supply. This constituted a major part of the 2008 crisis. It has also been opined that if the recession in the economic market will be seen, the U.S Dollars will be highly pushes away making way for the Cryptocurrencies resulting in heavy sale of all dollar-pegged stable coins.
With all of these, a new question might arise. Will the cryptocurrencies be a barrier in the economic decline? According to Robert Viglione, the co-founder of Horizen, he believes that digital currencies are the ideal disaster asset and they do not have enough data to draw the conclusion. It makes some sense in the fact that Bitcoin returns have zero covariance with any other asset class this far and they only have about the knowledge of ten years of the data of the crypto markets.