It's a great day for Hive!
CUB Finance is listed on dapp.com. Everything is linked in the eco-system, Splinterlands gets better positioned, Hive is up too, Cub now and all of the tribes later and our apps.

Let's climb down the ladder and see things from a more mundane, general perspective in this article, imagine a recession and how will people without crypto info and background react, or even those that are crypto investors.

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This article https://leofinance.io/@zpek/crypto-latest-predictions-and-insights I wrote yesterday is very related to this one right here. I'd really appreciate having some feedback from people from Hive. I write these articles because I need help in seeing things clearly.

THE CRISIS IS ON, we just don't feel it yet. 2022 will be different.

The Great Recession that started globally from 2008 to 2011 made extraordinary advanced tech rise: the Crypto phenomenon and fintech companies. But the big problem from then until now is that we have never had a global crisis again to see how the crypto market reacts to a major recession.

Feeling it

I don't think we can compare gold to crypto. You see the gold, it's palpable, people know about it. While Crypto is something new and the world at large does not know how to get crypto and how to use it to make a profit. They are afraid of something which is not in a concrete form. Many people still have doubts about crypto and what lies behind it. I don't! It makes me smile. One should just check the projects behind any currency before investing.

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We don't know how people will react to a recession, but there are 2 presumable situations:

1. People will panic and sell crypto to get fiat, money.
2. People will panic and sell stocks and stocks or other tangible things and buy crypto, then crypto will grow.
   I read and noticed that many times in small crises that people increased the value of crypto going on the second option. However, we do not know how the world will react when richer countries are affected by the crisis.

It is said that the great advantage of crypto is decentralization. It is partially true, but the big exchange companies are in the US, Korea, China ??? (what happened to those exchanges?) or Europe. If the crisis comes in one of the regions/countries where there is an exchange, prices will fall. Every time there is negative news from the Orient (China, Korea), prices fall dramatically.

Also, the value of crypto increases due to investors. In the recession even investors will cut spending, crypto capital inflows will slow down enormously or even stop. Many people see crypto as a speculative market and even these speculative markets are the first to hit recessions.

Am I stupid ???

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My idea is that many people trust crypto as an alternative to money and the current system, but crypto values are mostly helped by institutions that change crypto. Or so it seems. If the world were to adopt the cryptosystem on a large scale, it would be something, but it will not happen too soon and you still have to exchange. After Mt Gox closed in February 2014, Bitcoin fell 36% by the end of March. What will happen if two or more exchanges close simultaneously or during a crisis?

FEAR OF NO MOMENTUM is for people who are afraid to invest in crypto in case of a major financial crisis and see it as good insurance.

I am a crypto investor. But...
I myself am skeptical of crypto not because I do not think it is a better alternative but because people do not know how to work with this alternative yet. Chances are some of us will lose a lot. We do not know how to make crypto investments efficiently. But this can happen with any investment, after all.
My opinion is that there is an 80% chance that people who don't know about crypto at all or don't have the confidence to invest in crypto, well ... I think they will invest in gold or in what they used to invest in past crises rather than put money in an uncertain thing, which they don't know at all, called crypto.
On the other hand: Gold is a few hundred years old and has proved useful in other crises, crypto is still too young as a phenomenon to know if it can support a global financial crisis, all we have are strictly speculation.
BUT WHAT IF CRYPTO WILL BE THE REASON FOR A GLOBAL CRISIS?

Maybe in the future, we shall have more trust in crypto, or maybe if we're going to be investing piece by piece in crypto and getting out liquidity will help us survive a global crisis. Until then, I say not to put too much long-term hope in crypto and not to put all our money there believing it is a safe heaven.

What do you say? Will Crypto be the rescue in the coming crisis soon?

Zpek/Mike asks for your permission to be stupid and questions things from time to time.

I work 8 hours per day in double shifts, support my 2 siblings and mother, and dropped out of college to build something for me and my family...at least momentary support.

Thank you for reading!

PS: I was glad to see some more insight related to some similar concerns in @readthisplease article

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