Bitcoin, Crypto currency, Blockchain

What will be the impact of the US Shutdown on the crypto market?

It is not the first Time that the government of the United States is faced with a Shutdown. In the past the government has experienced several Shutdowns, and in the case of any Shutdown financial markets are in a state of panic. Until 1990, all of the financing have not led to gaps to closures, but since then, it is customary for the government in the event of such conditions. Whenever a Shutdown occurs, the financial markets in a panic, as a result, a drop of a few hundred points, which leads to the other world markets are clipped and Fall to begin. Normally, the investors move during such an agitation of their funds in safe Asset classes such as government bonds, cash or High-Grade Bonds. Some investors have considered crypto currencies during the shutdown of the American government in 2013 as a safe investment, which led to an increase in price. The Shutdown during the Obama presidency led to Bitcoin exchange rate rose within a period of 15 days from 115 $ to 140$. This does not appear from today’s perspective, after a great Run, but it was one of the best Runs, the Bitcoin had.

Chaos and panic

As already mentioned, investors, when it comes to a panic, money from the stock markets and invest in safer investments, these were in the past, mainly Gold and government bonds. Lately, however, there was a Trend, to buy in such times of crypto. What investors are looking for, is something that is not affected by the immediate impacts of the shutdown, and historically, Gold and government bonds, their resilience to such short-term market proven volatilities. The crypto-currencies in General, not of the financial markets beeinfllussen and are decoupled from the larger financial Ecosystem something. In fact, the emergence of Bitcoin was a Protest against the dealings of the government with the financial crisis of 2008. Satoshi Nakamoto, the Creator of Bitcoin, explained these reasons in the Bitcoin white paper, as the reasons for the creation of Bitcoin.

Safe Haven

You can, however, also say that crypto currencies are secure, since the volatility they have shown in the past that causes most investors to keep away from them. Nevertheless, many investors buy in times of economic crisis, due to the many properties you own, still in this digital currencies. Crypto-currencies have properties that do not have a lot of traditional investments. In comparison to inflationary Fiat currencies, crypto currencies are deflationary. No one controls the Bitcoin, it is decentralized. This means that Bitcoin against government decisions is immune, which is why many Venezuelan Bitcoin during their Hyperinflation have bought. The decisions taken by the government not to interfere with their savings. No one has control over the money that is held in the crypto-Asset. This does not mean that you are subject to the control of the flow of Capital, which can be introduced during an Emergency by a government, and that they are not affected by the banks ‘ imported deposits as in Cyprus. For many crypto-currencies, such as digital Gold, but unlike digital gold systems, two features are missing in contrast to Gold. Gold has a long history as a facility and a year long worth of development.

So why crypto-currencies to buy?

There are two different modes of thinking, the first one believes that the price of Bitcoin is strong of large financial institutions, and they are also able to influence the price of the crypto-currencies. The other way of thinking, it is believed that crypto-currencies are a safe haven from volatility in the traditional financial market. This Belief is what gives life to the prolonged bear-crypto market is currently slightly. The crypto-currencies have formed after the Shutdown of the government, such as a floor. The Shutdown has also led to Bakkt, the crypto trading platform of the ICE, was forced into a delayed Start, since it requires the approval of the U.S. Commodity Futures Trading Commission (CFTC). You will have to wait until the Shutdown is completed. Bakkt is an inter-continental exchange for Futures trading with Bitcoin. The start date of 12. December of this year, was on the 24. January of the next year, moved.

2018 ends with a Shutdown

With the beginning of the new year, there are a lot of good news for the entire crypto-world. Many countries, such as Japan and Thailand, have opened up with new regulations, the topic of crypto-currencies, and it is expected that more countries will follow. Although it was currencies lately, it’s more a decline for the courses of most of the Crypto as a recovery of the bear market, the forecast of most analysts, a recovery in the courses during the shutdown.

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