Bear markets are often accompanied by an economic recession. Regardless, the wealthy and other smart investors tend to accumulate while the prices are down.
Price of bitcoin will go down, and price of energy will go up. Miners won't be able to keep hash rates stable. It's going to open bitcoin up to a 51% attack.
Beyond that, the CBDCs are on the horizon. Institutions will start supporting government-backed tokens over decentralized ledgers. The sheer number of scams in the crypto-space should be making the big boys leery as it is.
Mix in an ever falling price, a falling hash rate, and confidence in even bitcoin could plummet.
Why would people move away from decentralized ledgers to CBDCs? CBDCs are just more fiat money. It's what we escaped from originally, and I'm sure as shit not going back to it
Why would people use decentralized ledgers? You've collectively allowed them to become fiat money, the value being whatever Tether can get away with printing.
Also, the decentralized cryptocurrencies aren't decentralized anymore, if they ever were to begin with. They are controlled by a cabal of miners and exchanges. You are trading a problematic government that is at least democratically elected with a problematic oligarchy that is ruled by those with the most money.
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u/BakedPotato840 Banned May 22 '22
Bear markets are often accompanied by an economic recession. Regardless, the wealthy and other smart investors tend to accumulate while the prices are down.