Are we really recession-proof?

Akshatsanwal
ShipFinex
Published in
3 min readNov 12, 2022
Are we really recession-proof?

The current economic downturn has been called the worst since the Great Depression of the 1930s. And while it has affected just about every sector, some have weathered the storm relatively unscathed. One of those sectors is the real-world asset-backed digital economy. In fact, the industry is often referred to as a “recession-proof” industry.

But is that really the case?

There is no doubt that digital assets have been proliferating for the last few years now. But the growth has tumbled during the current recession. There are some signs that the industry is starting to feel the brunt of the economic downturn. While the industry may be recession-proof to a certain extent, it is not immune to the effects of an economic meltdown.

Real estate is the most suitable example of how even a stable asset class crashed with the economic downturn, opening the floor for other assets to showcase their worth.

Digital assets have been endorsed as recession-proof, and while some did not appear to stand their ground, the real-world asset-backed digital economy still has some aces to unfold. A real-world asset-backed exchange platform allows users to trade digital assets, which are stored on a blockchain, in a decentralised manner.

These platforms are designed to match buyers and sellers of digital version of alternative assets in a way that is efficient and fair.

Marine Asset Backed Digital Exchange is a great example of the model. It is based on the principles of supply and demand. The platform uses a decentralised marketplace to ensure that prices are fair and that trades are executed efficiently.

The marine digital asset platform is envisioned to be used by businesses and individuals who want to protect their wealth during economic downturns while enjoying a relatively stable asset class. The platform provides a way to store wealth in a form that is resistant to inflation and recession.

There are a number of reasons why the marine assets digitalisation is proving to be a recession-proof alternative for people looking to invest. For one, the method allows simplified access to liquidity for individuals and businesses to free up capital that would otherwise be tied up in physical assets. By selling or buying marine assets on the platform in the form of a digital token, users can enjoy seamless access.

In addition, the concept of marine asset tokenisation is a new and still-emerging industry, which means that it is not as susceptible to the fluctuations of the traditional market. Lastly, the method is global in scope, which means that it is not as affected by local economic conditions.

So, while the rest of the world economy may be teetering on the brink of recession, the marine digital asset platform appears to be sailing smoothly ahead.

Conclusion:

It is difficult to say whether or not we are truly recession-proof. There are many factors to consider, macroeconomic factors, geo-political conditions, or a famous influencer making funny tweets.

However, real-world asset-backed digital tokens are bound to be relatively stable during a recession. These platforms could offer opportunities for people to invest in assets that are not subject to the same economic fluctuations such as the stock market. Additionally, marine asset tokens could provide a way for people to diversify their portfolios and explore a newly available but one of the oldest asset classes.

Despite concerns about a potential global economic downturn, the digital asset platform continues to grow in popularity, with more and more businesses and individuals signing up every day. It would be interesting to see which of these real-world assets survive this economic downturn and how the marine asset tokens stand firm in this storm.

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