Economic Solutions ... !!!
As the stock market continues to rebound to all-time highs, economists predict that the global economy is nearing recession. A number of indicators suggest that there will be global financial failures at a later date, and governments appear powerless to stop them.
The most prominent causes of this global recession are the increasing worldwide debt ratio and the 'deglobalization' of the world economy. Both of these big problems can lead to a recession, and solutions are still difficult.
>But according to some economists, Bitcoin can be the solution to the recession in Indonesia, right?
Payable and Termination of Cooperation
Global debt has reached epidemic proportions. Currently, governments around the world owe $ 244 trillion, which is the highest level ever. This debt swelling was largely due to the central bank trying to prevent a recession with monetary policy.
Lowering interest rates to increase liquidity, and policies such as quantitative easing, have turned debt into a government ledger. And worst of all, a recession might start in 2021.
The current observation is that the world economy has begun a process of "deglobalization". For example, Britain's exit from the European Union and the trade war between the US and China. Both show the breakdown of basic cooperation between world economies.
Regardless of the opinion about globalization, it must have caused an economic boom. Despite the complexity of the corona virus, the global economy has been able to sustain trade and other economic activities. This reversal of political stability can lead to disaster.
Central banks around the world are working hard to protect their countries from recession. One of the things that are believed to protect against recession is by lowering interest rates and injecting liquidity through loans.
However, interest rates have already hit record lows.
In Europe, several central banks have cut interest rates below zero and this is a first for the global economy. The United States, on the other hand, is already at its lowest level in history, although some improvements have taken place in the past year.
This injection of funds through debt did not produce any meaningful results. The current debt ratio is very high because of this, leaving the central bank without ammunition.
Is Bitcoin a Savior Against Recession in Indonesia
In Indonesia alone, bitcoin is quite easy to buy and sell through bitcoin exchanges such as Indodax and can be purchased by anyone.
According to corporate finance managers around the world, they are starting to see that moving some assets to cryptocurrency is a strategic move. “The interconnected economic system now makes all assets interconnected, except for gold and bitcoin. Thus making bitcoin one of the most valuable assets to buy, including for Indonesia, which can integrate domestic and global markets, because it can increase market and public trust in the government.
Access to bitcoin itself is open to anyone. Whether it's an ordinary or advanced individual investor, including corporations or corporations.