10 Reasons Why Blockchain Is Recession-Proof

Blockchain is recession-proof, and will likely become one of the most reliable bulwarks against the next recessions.

Trump's economic policies have not been boding well for most Americans. The trade wars have caused farmers to suffer, while poor regulations have made more than one business go belly-up. It's understandable why many financial experts are now telling people to prepare for an economic downturn. 

We're overdue for a recession, and if you're like most investors, you will want to find some investments that are considered to be recession-proof. After all, no one wants to see their investments tank at a time when they may need the money the most. 

In the past, most people who wanted to prepare for a recession would buy up stocks like Kraft or Boeing. These days, people are starting to surmise that blockchain is recession-proof, and if you think about their rationale, you'll realize they're right. 

Why invest in blockchain?

Blockchain technology is one of the newest revolutions of the information age, and has already proven itself to be an incredibly powerful form of tech. It has given us Bitcoin, a way to fight DDoS attacks, and has even been shown to create a smarter energy grid

The entire decentralized world involving blockchain has been sharply growth-oriented. So far, the returns people have gotten are impressively high. Countries that have tried to block it from influencing them have quickly discovered that it's a truly borderless system. 

Now that you know a little bit about the perks, let's talk about why blockchain is recession-proof as far as investing goes.

Some people would argue that the currently high returns could show promise for the future.

Admittedly, this is a weak argument, and one that really doesn't hold water on a historic level. However, some people still believe it to be true, so we're going to cover it. 

Since Bitcoin had sky-high returns compared to most other industries, some investors believe it could be a sign that blockchain is recession-proof. The idea behind this is that Bitcoin would potentially still offer up returns—just not as high as they would be during a bull market. 

Blockchain's biggest weakness is also its biggest strength.

Most people acknowledge that cryptocurrency is one of the most dangerous investments to make because it's decentralized and not backed by anything. Since it's not backed by a government guarantee or by business assets, if the currency folds, then you really won't be able to recover anything. 

It sounds terrible, but there's a flipside to this. Since it's not tied to a certain government or business, blockchain currencies won't tank if the economy or a random company declines. That is a huge strength in am ever-changing market.

During recessions, it's almost always the latest technology that brings people back to a better economy.

The best cure for a recession is innovation and adaption. To survive, you will need to adapt. During the last recession, we developed the micro-gig economy and the e-commerce world boomed. Technology is a huge asset to companies and individuals that are willing to adapt. 

Considering the importance of blockchain already, it makes sense that it may be the vehicle that helps carry us out of a recession. By investing early, you reap the full rewards of that work before it even happens. 

Blockchain's volatility also means that there will be ups and downs while most of the economy declines.

A recession is generally accepted to be a major, long-standing downturn in the economy and stock market. That means that most companies you'll see in a recession will be tanking steadily until the recession subsides. 

Blockchain isn't like most other investments. It's so volatile that it will constantly go up and down—even during a recession. This means you'll potentially see a profit, even when most other companies are ailing.  

Evidence already suggests that Bitcoin could act as a stable value storage concept.

Due to the fact that it's not centralized in any given company or country, there's a good chance that Bitcoin's prices will remain relatively stable during a major recession.

Studies have shown that economies that become less stable tend to have people transfer their money into blockchain-based digital currencies like Bitcoin. In many cases, this actually preserves the value of their money.

Should the Fed fail us, it's likely that many United States households will start to use Bitcoin and other currencies to store their cash. This would, by concept alone, mean that blockchain is recession-proof when fiat currency falters. 

Even companies that are based on blockchain have a higher chance of surviving recessions.

When you're in a recession, cybersecurity matters. A lot. If you're hacked and you're already struggling to keep your company afloat, it could spell death to your business. 

The cool thing about blockchain is that it renders a lot of cyberattacks obsolete. For companies that employ blockchain technology, this could mean that they have an added defense against economic turmoil. 

So far, Bitcoin has been behaving similarly to precious metals.

People who remember the beginning of the Great Recession might recall a time when you would see "CASH 4 GOLD" signs on every corner. Gold, during that recession, shot up in price significantly—as did silver, platinum, and palladium. 

Bitcoin has started to be treated as an investment similar to precious metals. Other cryptos have been similarly regarded, too. This could mean that any digital currency based on blockchain is recession-proof based on reputation alone. 

Blockchain currency values are also not underwritten by a central bank.

If a company's central bank suddenly collapses during a global recession, all the trades underwritten in the country's currency will fail as well.  Bitcoin and other blockchain currencies literally cannot have this happen.

The decentralization of blockchain means that there's no central bank to fail. The fact that blockchain currencies are also made by supply and demand means that it, also, won't likely collapse, simply because someone in the world will always want Bitcoin.

Though we aren't 100 percent sure that blockchain is recession-proof, it's safe to say it looks promising.

Remember, there's no kind of investment that's completely and totally recession-proof. Just about everything will take a hit during tough times. 

As gloomy as that may sound, it's safe to say that blockchain-based investments will still be able to weather the storm—and that's all investors can really ask for. 

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