Economic downturn will lead to Bitcoin's rise in value

Philip Salter of Genesis Mining believes that the economic collapse could lead to an increase in the value of Bitcoin as a sort of hedge against banks. [...] https://www.pinterest.com/pin/1085437947660215829/

Philip Salter of Genesis Mining believes that the economic collapse could lead to an increase in the value of Bitcoin as a sort of hedge against banks. Economic Collapse and Bitcoin Bitcoin has provided us all with a lot of extreme excitement over the past few weeks. There has been a sharp decline in the profitability of digging the cryptocurrency and an equally terrible drop in its price. The community, for good measure, has stopped believing that BTC is a safe haven, and some have even started to rally to its demise. But is this a valid line of reasoning? Cointelegraph conducted an interview with Phil Salter. The topic was mining, among other things. Speaking about whether miners played a significant role in the recent market crash, Salter noted: "It's no different than traditional markets, you have to sell everything to keep your business going, to pay your debts. As a miner, you have to pay bills, you have to pay for electricity, for operations; and your expenses are expressed in dollars, so when the price of Bitcoin goes down, it means you have to sell more inventory to continue [operations]." It's a snowball effect. When the price of BTC drops, miners are forced to sell more of their cryptocurrency stocks, thereby putting their hands on even more declines. Bitcoin is the new gold The portal also entered during the conversation on the question of "Bitcoin a safe haven". Should bitcoin still be considered the new gold? After March 13 (Friday the 13th - puzzling...), many experts believe not. Salter, however, is of a different opinion. The further fate of cryptocurrencies is to be linked to the scale of the crisis: "If the economic crisis is contained, it will not have serious consequences for Bitcoin. However, if there is a real collapse, interest in Bitcoin will explode. Cryptocurrency] will go back to being seen as a hedge against the banking system. The more skepticism people see about the old economy, the more they will focus on Bitcoin." Is the expert right? Everything will actually depend on the length of the crisis and its impact on the bank-based system. If fiat currencies start to lose value through inflation... Yes, then BTC could gain heavily on the chart and in the eyes of investors. Tags safe haven bitcoin crisis gold