recession

Could Crypto currency be an alternative solution for 2020 recession?

Banking giant billionaire JP Morgan chase has predicted only 60 percent chance for the next recession to occur in 2020. In era of chaos and market crash, can crypto be a viable alternative to existing currency value? Analysts are predicting the history’s biggest recession by the end of 2019 or in the start of 2020. Some people suggesting that there are 60 percent chance that recession would hit USA in 2020 and 80 percent that it would hit later in the next three years.

Federal Reserve bank of New York although doesn’t agree with the experts and mention only 14 percent chance of having any recession occurrence by the end of 2019.  JP Morgan has literally worked on every possible indicator like salary growth, consumer and business sentiment, and labor participation. Chief economist at Amherst Pierpont thinks recession may hit USA after 2020 but he shared almost similar sentiment to JP Morgan as he sees US economy much stronger to face any recession in coming years.  Majority of the analysts and economy experts suggest maximum two to three years to face the history’s worst possible recession and market crash due to trade issues.

During a timeline when everyone is talking about recession hit, the demand for crypto currency is growing by leaps and bounds. More investors and companies seem to show interest in the technology and crypto coins. Big financial institutions such as fidelity, Goldman Sachs and Citigroup are working on establishing infrastructure to attract more investors for digital asset marketing. Sudden growing interest of financial institutions in the digital coins predict a brighter future for the crypto market and investors.

Jim Hamel, portfolio manager at Artisan Global suggest exponential growth in recent years, could lead more investments. He said.

“There are a number of tailwinds contributing to this trend. First, we’re seeing rapid growth in e-commerce, which requires that customers be able to make secure digital payments. The growth in cross-border transactions and the general impact of an increasingly globalized marketplace are helping accelerate this trend.”

 

Add your comment

Your email address will not be published.