Cryptocurrency

ING Bank warns of recession in Germany – consequences for Bitcoin and crypto-currencies?

A lackluster December report on industrial production and exports suggest that Germany has an increased risk of Recession. It could be that people are hedging with alternative investments like Bitcoin against economic Worries, if the risk increases in an economic crisis.
The economic problems of Germany could intensify, according to the latest industry data. The data for December 2019 show that the slowdown will continue in the industry of the country.
In a of of ING Group written assessment “in the industry, data from the December, very few positive elements”.
In fact, ING warns that the data could increase the risk that the “R-word” comes out of recession in the German economy back.
The evaluation of the Bank:

“Today’s data are another reminder that 2019 was for the German industry is definitely a year to Forget.”

If such Trends continue, we could experience an economic slowdown which will inevitably impact on the world economy as a whole.

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In times of increased economic Fears, investors are looking for hedges. Recession fears often increase the investments in “ports”, which apply in times of Emergency as a safe. Historically, Gold and silver are refuges and during the last years, it was increasingly Bitcoin (BTC).
How Bitcoin would compete under a German economic recession, let alone a global recession? In addition, the Jury is still at odds, since Bitcoin has emerged after the Great recession of 2008. However, there is room for cautious positive optimism.
The Chaos on the world stage seems to correlate positively with the price of Bitcoin – and the evidence suggests that investors have a degree of confidence in the leading crypto-currency.
In fact, Bitcoin could surpass Gold as a hedge against economic instability in the year 2019. Bitcoin was in times of geopolitical uncertainty, a stronger, more flexible indicator than Gold.
Even skeptics to give reluctantly, that Bitcoin today is a hedge against financial Chaos. Peter Boockvar of the Bleakley Advisory Group, a well-known “Bitcoin-bear”, told CNBC in June 2019 that the price movements of the Bitcoin point share on the global Trends.
It now seems undeniable that Bitcoin is close to the heartbeat of the global markets and also economic Concerns and Fears captures.
How will the impact of a recession on Bitcoin? You can’t say with certainty, however, has shown Bitcoin in the last few years as a Mature asset. Should there be a recession in Germany, we are experiencing probably to stream as many investors as a hedge of Bitcoin.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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