Nation's turn to Crypto to avoid recession

Nation's turn to Crypto to avoid recession

These past few years a lot has happened and to be honest I am not sure if we can compare it to the 2008 financial crisis in comparison to which is worse. This one feels to be dragging out for a lot longer than 2008 but I am also a lot older and feel it a lot more compared to a young broke 20 year old.

Although 2008 it was exceptionally hard, I remember I was so out on my luck that I had to sell my only T.V to the pawn shop to get food for the night. always promised not to get there again. However, the longer we sit in this situation the harder it feels.

Given that this has gone on for some time a full recovery will probably take longer as it felt the world had finally moved on from the 2008 woes. But there is quite a few differences, one being the 2008 financial crisis felt like it just happened where this one was building up to it.

Inch by Inch

The difference between this financial crisis compared to the 2008 one I feel, despite COVID having an impact on it is that everyone was moving towards a recession, more so saying it which evidently has caused a recession.

What do I mean?

Well think about it, the slow pace of this one you would think that it could be easily avoided as we could plan for it. While that is the logical thing to think the psychological impacts of constantly hearing "recession looming" or "possible recession" has a bigger effect on the outcome we're trying to avoid.

Most people know what a recession is and it's a scary thing but given that most of us are now a new generation we haven't really experienced a full fledged recession or a depression like that past, but we know of them.

Did we verbally create the recession?

Everyone has learned about the Great depression where people had to line up to get portions because there was no work or money and no one could buy food, clothes or anything else. Having no real lived experience of one means that a lot of peoples minds go to those teachings.

Unfortunately this has had an impact on consumer spending and while spending is up, people aren't spending the way they used to and instead hording cash for the upcoming recession that they keep hearing about.

The last thing you want to experience is not being able to afford food so that thought is on everyone's mind when they go to the checkout, get paid, and alters their spending behavior or more so, how long they hoard cash for an emergency.

And now many are succumbing to recessions that could probably have been avoided if people just kept spending as normal.

Crypto to avoid recession

Financial issues were escalated when Russia went to war with Ukraine and western nations placed sanctions on Russia to cause the nation to go into a recession and starve it of funds to complete it's war.

Russian's turned to crypto currency with the majority of russians owning more crypto than gold.

Using crypto as a store of wealth has already started with research finding that more Russians own crypto currency than gold and with further financial worries a head, Russia has finally decided to launch it's own crypto exchange to bring cash in.

Germany fights Recession with Crypto

Russia isn't alone with its maneuver of accepting crypto to help end its recession and is slowly allowing it's citizens to purchase crypto currency which is an advancement on it's initial position of only enabling people to purchase crypto through certificates.

These certificates were associated with for example 1 Bitcoin that was held by the investment banker and provided proof of ownership and designed to limit loss.

Now with Germany in a recession it will need to get people spending again to list economic impacts and stimulate the economy and the best way to do this is through launching new and innovative industries with Bitcoin being one of those mentioned new innovations.

So while we can all huddle around and be worried about recession it seems to be doing well as a crypto booster but it is also to note that we may even be in a recession that could have been entirely avoided purely based on the fact that people were constantly told we are entering a recession so they started to hoard cash.

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