Financial experts the world over are reporting the alarming news that the world is not clear of recession yet. The problems of debt and financial recklessness that caused the financial crisis have not been fixed, they have been plastered over. Government debt in most of the world’s major economies has soared to bail out crumbling banks, personal debt continues to climb, and none seems to be in a position to fix it. Exactly what will set it off is unclear: the Euro crisis could come to a head, interest rates in the UK could rise, or Luxembourg’s outrageous debt of over 3400% GDP could implode.
If and when the situation develops as experts are predicting, what will the implications for alternative currencies like Bitcoin be?
It isn’t impossible to imagine that Bitcoin might become a very popular alternative to stocks, Fiat Currencies, and even Gold, if another financial downturn were to hit the world economies. It has been reported that citizens in Europe have already turned to Bitcoin in the current times of turmoil in the Euro Zone.
Gold is currently experiencing it’s own special problems, as detailed at TheFundsProject today, as a shortage of physical Gold is causing concern for investors holding paper Gold investments (where the Gold is stored for them in a Bank).
Whilst another economic crisis would be a disaster for most of the world’s leading Governments, it could spell a very important chapter for Bitcoin.
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