Ahead is the Worst Economic Crisis of the Century. What Will Happen to Bitcoin?
The head of the IMF predicted the largest recession since the Great Depression. According to Kristalina Georgieva, more than 170 countries will face a decrease in revenues, this will also affect the sphere of cryptocurrencies.
In 2020, the worst economic downturn since the Great Depression will occur, the head of the International Monetary Fund, Kristalina Georgieva, is sure. She argues that the coronavirus pandemic will lead to economic consequences that have never happened before. “Already, it is clear that global economic growth in 2020 will be sharply negative. We anticipate the worst economic downturn since the Great Depression, ”said Georgieva. She added that more than 170 countries, including developed and developing economies, will face declining incomes. According to the forecast of the head of the IMF, if the coronavirus pandemic declines in the second half of 2020, then a partial economic recovery may begin in 2021.
Also today, the board of directors of the International Monetary Fund approved an increase in emergency financial assistance to countries in connection with the double distribution of COVID-19, to $100 billion. The organization’s website says that more than 90 countries will receive funding. Georgieva noted that the “unprecedented” number of applications for assistance from the IMF comes from different countries.
We are entering an era of inflation, where money will quickly decline in price and rates on reliable bonds will always be low, said Anton Kravchenko, CEO of XenaExchange. He suggested using an asset basket to protect funds, which would include: REITs (Real Estate Equity — assets with real estate income), precious metals (gold, silver, platinum, palladium), leverage (PowerShares Senior Loan ETF as an example) and TIPS (they show returns above inflation in 80% of cases).