Navigating the economic crisis: insights from financial and crypto experts
Talk of an impending recession has not subsided since 2022 – however, to date, if you use the official definition of this economic term, a recession has not yet occurred. However, this doesn’t make it any easier: consumers around the world are suffering from inflation and rising prices, banks that were reliable yesterday are suddenly collapsing, and financial and crypto experts are tightening their belts in preparation for the crisis. What awaits the international financial market? We’ve summarized the opinions of experts.
Is the crisis unstoppable?
Bloomberg Investment Outlook for 2023 predicts a global slowdown in economic growth and rising inflation, which could lead to a decline in traditional assets such as stocks and bonds. According to one of the world’s largest investment companies, Franklin Templeton, global economic growth will slow down, but inflation will continue to grow. The company’s experts say they are seeing an “overheating” of the US economy – supply is beginning to overtake demand, at the same time suffering from issues with supply chains.
Some experts see this as an opportunity for strong growth in emerging markets. While the world’s largest geos may stagnate, emerging economies will surge. Businesses that are already interested in new markets and expanding the geography of work may soon be more profitable than those that have occupied a niche in developed countries.
Cryptocurrencies – the gold of a new era
In times of crisis, people tend to trust traditional money and financial institutions less. This is because economic crises are often associated with high levels of uncertainty, volatility, risk, lower overall economic activity, job losses, and financial hardship. All this greatly undermines confidence in the financial system and institutions. And if earlier this loss of trust was expressed in people transferring money into real estate or gold, today alternative financial instruments, such as cryptocurrencies, are becoming increasingly relevant.
Although some experts still stubbornly consider cryptocurrencies to be a financial bubble that can collapse at any moment, others remain optimistic. For example, the company Ark Invest expressed confidence in the stability of bitcoin and its potential to become a global reserve currency – a modern analog of “hard” gold.
We at Betatransfer also believe in the stability of the crypto. Its technological foundation, cross-border nature, anonymity, and versatility provide both businesses and consumers with many benefits that are hard to ignore – especially in times of economic crisis. And therefore, no matter what surprises reality may bring us shortly, a crypto payment service for high-risk and mainstream projects is the very must-have that can help you stay afloat in any circumstances.