– I don’t often do this, but I am going to ask you guys
for some help with something. I generally have a pretty strong opinion about the way things are going
to go and how things interact and force other things to
perform in a certain way, what’s gonna help stocks,
what’s not going to. My question, though, and what I’m trying to
develop is an understanding of how are cryptocurrencies going perform during a recession or a
stock market meltdown. (whooshing) (coins clanging) (banging) I have some strong opinions, and I’m developing them
right now as we speak, but I want to hear from you guys. What do you think is gonna
happen during a recession, a very serious recession
versus a mild recession to a stock market correction
of five or 10% compared to 20 or 40%? What happens to cryptocurrencies? Part of the problem is
that they are so new, so we don’t have a really
long track record to see what happened in previous
historical times, but there’s two different
sides of this argument, and some people say one thing. Others say another, and everything I’m looking at has just actually been
making me more confused. The manufacturing index as provided by the Institute for Supply Management and the St. Louis fed, and you can see, I just did a shorter chart
that’s gonna cover the recession, which we had in 2008, which followed on a 2006,
2007 mortgage meltdown crisis, and manufacturing dropped,
which doesn’t matter. I’m just trying to get a close-up chart, and this is one of the
charts I was just looking at with some analysis, so
this is one you get. Anyways, this is just to show
you when the recession began, and obviously, the ISM Manufacturing index
declined significantly and then rebounded. Now, this is a short window of time, and this is part of the problem because I’ll go over here to the
chart provided by CoinDesk, which is gonna show you the
same time period approximately that Bitcoin increased from,
you know, $13, $10 back here, but if you want to start looking at about when the recession
was and how it was too new of an asset vehicle to really
show you anything significant, there’s no track record here. You don’t know how Bitcoin
is definitely going to react to a recession or stock market crash. You can have your opinions, just as I do. It’s supposed to be to a
certain degree a store of value, but it’s also operating and
trading on different influences than we’re typically accustomed to when it comes to the stock
market and recessions and the economy and everything else like that. So the recession began in 2007, very late, but we’ll call it 2008 up
until 2009 a little bit, so what happen in 2008, 2009? Well, that was before
this chart even began, so it’s meaningless. It’s irrelevant. You can’t use historical
data to figure out anything about how Bitcoin performs
during our recession, and you can see what happened was that the cryptocurrency just
basically performed very well except for dropping down from
here for a little while and in more recent times has
soared as high as $2851. This may be even more
significant and more powerful than anything that happens
with the stock market, and that’s a benefit to Bitcoin and Bitcoin investors and cryptocurrencies. Maybe that’s the way it’s gonna play out. I don’t know because during a
recession people are holding onto their cash a little bit harder, and they’re not looking
to invest in greed as much as they look to avoid fear, and if you’re looking to avoid fear, a lot of people are
not going into Bitcoin, although there are some who
are going into cryptocurrencies because of that fear, and
I want to get a better idea of how this is all gonna play
out when we have a bit longer of a track record here. Bitcoin has been around
a little bit longer, and people understand it, and they’re buying it more regularly. I need to know then what happens when the economy starts
going the wrong way. Do cryptocurrencies get stronger, or do they lose some of that
steam when people pull back and try to save up for other things, like having money to buy their groceries. Let me know what you think. What do you think happens to
cryptocurrencies like Ethereum and Bitcoin during something
like a stock market correction or a major recession. What would be really great
if you guys subscribed to the channel because we’re
growing really strongly. We’ve recently busted 10,000 subscribers, and we’re on our way to 100,000, and we need your help to do that. Please tell everybody that you know in the entire world to
subscribe to this channel, and we’ll see how fast
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