With a recession on the horizon or more so at the commencement there are a few things we already know about these economic times such as assets values increasing in time of inflation and recession. Cash is bad but valued assets climb.
It's not since the 1970s that the world has seen an economic decline like we are today which includes stagnation.
Stagnation is a little different to a recession which is negative growth whereas Stagnation isn't so much of a decline but a slow growth of less than 2% annually and a stagnant workforce or increases in part time and casual work.
The challenges that stagnation bring is the lack of innovation which is the opposite to stagnation as in order for an economy to grow there needs to be a lot more risk taking into new industries and economic stimulation. This is something that is a little behind currently.
The difference between now and the 1970s is the changing economic space specifically in the financial sector with the growth of Cryptocurrencies which could be associated with an innovative industry.
Although it's impacts of financial growth in the sector are yet to be determined we can see from a range of media articles that Bitcoin is creating wealth and bringing in a new era of industry in the information technology space. How much so is yet to be seen and when it will be fully integrated is still developing.
Bitcoin has found a new range which seems to be at the $US20,000 mark with many investors stating that if Bitcoin is under $US20,000 it is a good time to buy and if it is over $US20,000 it is optimal selling time.
This raises some questions throughout this economic period about the lifecycles and position of Cryptocurrencies as mentioned above in times of recession assets are the go to investment. We are yet to see if Cryptocurrencies will also be included in that snapshot of price rising assets.
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# Atomic Growth
One Crypto that has started to break away from the current market trend is Atom the native token for the Cosmos ecosystem which suffered a recession once Terra (Luna) Network's stable coin UST crumbled. The reason this happened is because Cosmos didn't have a stable coin on it's platform which has become a standard for all chains in order to succeed in times of turmoil or to aid in savings accounts.
After the May collapse and with the current recession Atom is showing signs of a recovery with increase investment and continued development on its IBC platform.
Atom has been a token and chain to watch closely because not many chains recover will outside the top chains such as Binance and Ethereum and given that Atom sustained it's fall from a $US30 value it is showing signs of fast returning to that position.
It's true test was in May and now that it is regaining ground we can hopefully expect to see it reach $US60 to $US80 between the end of this year and Q2 next year.
With continued growth and new developers being drawn to it's network the protocol is sure to continue to climb reaching amongst the top chains.
But is all of Atoms problems behind it now? what do you think?
Image sources provided supplemented by Canva Pro Subscription this is not financial advice and readers are advised to undertake their own research or seek professional financial services
