The German economy is on the brink of another recession. This will be the first of such setback for Europe’s largest economy since the global recession which spread through 2006 to 2013, and hails back to the message created at Bitcoin’s genesis about a bank bailout.
This time, economic data coming out of Germany is not looking good at all. The monthly confidence index has dropped significantly, and company managers are really disturbed about what could happen in the next six months. The monthly confidence index has dropped, and the nation’s GDP has contracted by 0.1% in the past 3 months. The people’s fears were confirmed by Germany’s head of ifo, Prof Clemens Fuest. According to him, the forecast does not look good, and everything points towards a recession. Fuest said:
“Everything we see at the moment means there are ever more indications of recession in Germany, meaning two quarters of negative growth.”
When recession happens, it hits the banks and financial institutions, with unfortunate ripple effects felt heavily by the citizens who usually have no business with the causes of the recession. Personal funds and assets will generally lose value, particularly when there were no practical alternatives to fiat currency systems.
Cryptocurrency’s founding purpose as described in the Bitcoin genesis block
The current design of traditional banking systems has historically shown susceptibility to the cycles of recession, such as that which may befall Germany, and bailouts. This is a point that was noted in the very first Bitcoin block by Satoshi Nakamoto. The Genesis block of Bitcoin contained the following message:
“The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”
This was in reference to the headline in The Times newspaper of that day, a story where the British Chancellor Alistair Darling was considering a bailout for the banks after the financial crisis in 2008. By including this message, it is believed that Satoshi Nakamoto was trying to expound the weakness of traditional banking systems while ushering in an alternative monetary system. A self maintained system that will not be subject to inflation, and external factors like the ongoing trade war between China and the United States. The advent of Bitcoin and other cryptocurrencies like Dash has provided an escape route for citizens. Such cryptocurrencies possess universal identities and are not subject to the economic conditions of any particular country.
Dash’s growth in German-speaking countries
The looming threat of recession may be one of the reasons why activities around Dash in Germany has picked up significantly in recent times. Already, online merchant ShopInBit.de has noted how Dash has been dominating its platform recently, with a higher percentage breakdown of Dash users coming from Germany. This may be in part thanks to the Dash Embassy D-A-CH, a group that works to promote awareness and propagate business relationships across the German nation and beyond. The group recently organized a global conference, the Dash Convention Europe, that promises to showcase the strength of the decentralized Dash community.
This will not be the first time that we are seeing citizens of nations running to cryptocurrencies like Dash in order to escape national economic woes. Venezuela is an obvious and recent example, with widely-reported Dash adoption, including into several major chains such as Traki department stores and Farmarket pharmacies. Economic downturns such as this may be mitigated with the emergence and use of cryptocurrencies like Dash, allowing the people to operate on a higher monetary system with a universal reach, fulfilling the vision described in Bitcoin’s genesis block.