Recently I have been reading some publications from users who seem to have a good command of the economic subject, and are also good researchers. I think that living in a country with access to other information and realities that allows them to have another view of the world economic issue also plays an important role.
- But everything seems to indicate that the* World Economy which was already going badly before the pandemic, with the arrival of the Covid-19 there is no turning back in its downward trajectory, or at least not this year.
I am not a great connoisseur in this area of the economy, but guided by my reality and by the things I read, it really seems to be worse than I think or at least what I manage to see from my point of view, from my reality.
It is more than known that at least until now, the dollar is the currency that has been used for a few decades as the reference currency worldwide, let's say that just as English is the most important language in the world, the same is true for this currency, the dollar, it is still the most used.
I wonder: what would happen if this coin that is used as a reference loses its value in a considerable way?
Well, I assume that something similar to what happens when Bitcoin, the main cryptocurrency, drastically reduces its price, that most of the alternative cryptocurrencies (Altcoin) do too, but, it should be noted that not all of them go to the floor, there are some that stay within their average price and even some that raise their price and value.
Why am I bringing this up?
There is a market logic, which without being that specifically my area of study I know is a kind of rule, when there is a lot of something, its price goes down, and vice versa. That is to say, when the supply is greater than the demand the price is usually low, and when the demand is greater than the supply its price rises. In general, of course, it happens, or at least I have seen it in everyday life. Example: The demand for masks increased, the supply decreased and their price rose. I think this happened in many countries.
So, in the US they are literally printing dollars by the thousands or millions, without any backing according to what I have been able to read, we know what this can bring to the world, the depreciation of this, the main currency (at least still), could bring big problems for the world economy, and leave it even worse off than it is. Of course, there is always the option that this will not happen, however, even if another fiat currency were to dethrone the position that the dollar has held for so long, the changes that this could imply would assume that it would not be at all pleasant for the majority and would even worsen the situation in many countries.
For the time being, it is up to us to wait, to be smart in handling money, to contemplate and make the best decisions.
What do you think will finally happen to the world economy?
Do you think everything will stabilize in the course of the year?
I'm waiting for your comments, I'll be happy to read them and respond.
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It is a difficult topic to debate because making a prediction is not easy, but in this sense you prefer to be optimistic and believe that this is a great opportunity to create a new economic model. It is a subject to think about and it seems to me great the way you pose the analogy with taming. In this new economic model I think they are leaving to do many service exchanges and a digital currency is definitely going to be used as a reference maybe a universal service / goods price table It will serve as a reference or guide for different things or sectors.It is a complex issue but we are going to now, and I think better to think what are the possibilities