Talk free about BCH / BTC low price
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In my opinion, this fall is happening because of coronavirus. I know it's a hard moment, and all of us are thinking :
"Let's cash out our money because they are not safe with crypto"
I believe that they are safer holding them into crypto than in your local bank, or even worse, cash.
Let's discuss here this topic, I'm really curious about your opinions.
In the same sense that the general market downturn is happening because of that. I think coronavirus is just the scapegoat (fabricated or not, who knows). An a slowdown in the economy probably effects also a slowdown in virus propagation, so it might be being used as a tool to ease the fight of the pandemic. At least that's being thrown around. Not sure if true, though. I somehow favor the scapegoat theory. This virus is just such a great excuse. "noone's fault, who could've planned for that shit?!?"
We're sliding into global recession and it's really pretty bad across the board.
Now the interesting thing is about crypto: One might've thought the cryptos would fare better than the stock market because people perceive them as a safe haven asset class. Well, it seems not enough people do. For most it seems it's a risky asset they sell pretty much first when they need cash. Cash they need for margin calls and so on.
Gov't Bonds are perceived as the safest place, it seems (they can always print more money).
Gold isn't rocketing, either, but it's keeping value pretty well, slightly up even. No sign of physical gold decoupling from the fake paper prices, either.
Personally, I'm starting to shuffle back a bit of the cash I have accumulated during the last weeks to increase my cryptos. I never invested in stocks and I'm not planning to, although there might be a good entries presented at some point. Currently it's just too risky. I perceive the cryptos to be the safer bet, but a bet still. Fiat is fucking reliable: you just know it's going to lose value. But at least it's just 5-10% per year and not 30% in one week or 90% in a year or 2 like cryptos sometimes do. So I can understand people holding some cash and I do, too.
The 3rd-party risks with fiat (in the bank) are real. Those banks (deutsche bank could be the first this time) might well go under and then what? Bailins? Bailouts? Fuckits? Complete blowup of the whole financial sector, retirement funds all that shit going belly up? More easing? Helicopter money? The hell, I don't know.
I don't think that. I'm looking to increase my crypto holdings. Just not sure when the bottom will be in. Probably more downside. Not enough capitulation yet.
Crazy times anyway, thanks for reading this incoherent dump of brain outflow.