This past year, the internet was packing with articles presenting Bitcoin as a bubble that is very likely to explode soon or as a coin that is going to vanish, because it would be impossible for a currency that doesn’t exist physically, to last for a long time.
Some analysts say that the main focus should be on the stock market and real estate, because that is the real bubble that is more likely to explode. Also, as a hypothetic situation, Bitcoin’s ‘explosion’ could not affect the financial world the way that stock market would. If the price of Bitcoin will drop massively one day, from $15,000 to $500, the world economy will keep its shape and won’t crash. On the other side, if the stock market will crash, the way it happened in 2008, enormous economical disasters will certainly happen.
But still, if we assume that a collapse like this will occur, what will happen to all the cryptocurrencies?
Until now, if the economical circumstances have worsened or deteriorated, the price of Bitcoin has grown. A good example would be the economical crisis in Greece, when the price of Bitcoin have benefited from a massive growth. Of course people are clinging to virtual currencies, because in spite of their large volatility, the virtual coins are the only ones that have proven their stability when it comes to remaining on top and not dropping when the economy hits.
Bitcoin remains after all, the perfect solution to store money away from governments.
During an economical crisis, the interests are growing incredibly high and the hiperinflation is starting to be notied. That means it is pretty hard to obtain bank finances and the ICO market is a good solution for this issue.
If the derivatives market were to crash, there are not enough money on this Earth to solve this problem.