Many experts, including accredited financial analysts, monetary policymakers, central bank officers and government representatives are saying that a global financial crisis on the scale of the famous 2008 crisis is unavoidable. Some of the most radical analysts believe it's just around the corner, and might hit the markets before the end of 2019.

It is common for global economic instabilities hit the markets right when everything seems to work around the clock, so let's skip the "everything looks fine" part.

Why a financial crisis is not just the myth many of us would like it to be

According to Elizabeth Warren, a former US senator from Massachusets and an academic expert in bankruptcy, there are multiple signs of an upcoming global financial crisis that in fact could be much worse compared to the recession of 2008.

Indeed, the global financial markets agree on the increased risk of a downturn in the near future, with the Bank of England even hosting a publication on their website addressing specifically that matter, explaining how it is not only possible but is practically unavoidable.

"No one can say where the next crisis will come from. But what we do know is that the next crisis will be different from past crises: history may rhyme, but it rarely repeats."

In a recent post entitled "The coming economic crash and how to stop it" Warren focuses on the U.S. Treasury yield curve, which is essentially a tracking indicator for "market confidence".

US Treasury yields since May

Other countries are not doing much better. In fact, 10-year government bond yields are in negative territory for most of the developed countries.

10-Year Government Bond Yields...

Switzerland: -0.99%

Germany: -0.70%

Denmark: -0.66%

Netherlands: -0.56%

Austria: -0.44%

Finland: -0.43%

France: -0.41%

Slovakia: -0.38%

Belgium: -0.36%

Sweden: -0.33%

Japan: -0.27%

Slovenia: -0.22%

Ireland: -0.07%

USA: 1.49% — Charlie Bilello (@charliebilello) August 27, 2019

When investors demand higher yields, which is normal for a healthy growing economy, the indicator rushes upwards. This March, however, it inverted for the first time since 2007, alerting that investors are not only worried about the near future, but they'd rather flow with lower rates now instead of risking macro rates going even lower.

Furthermore, Warren says that the curve has inverted before each and every recession during the past five decades.

Additionally, just a quick online search tells us us that various academics and financial regulators are speaking of an upcoming recession, with each publication justifying the prediction in its own terms.

Some say Brexit is a key element to the next major downturn. Others insist that Trump's handling of the US-China trade war will eventually damage America's economy so badly that a global financial crisis will emerge on the other end.

However, there is an argument to be made that the U.S. government and the Federal Reserve will pull out all the stops to avoid a technical recession (two consecutive quarters of negative growth) before President Trump's presidential term is up.

How Bitcoin, a digital currency fits in all that

Some analysts believe that whether it's expensive or cheap, fast or slow, Bitcoin has proven it can actually act as a safe-haven for investors during uncertain times such as a possible global financial crisis.

Sheila Blair says that Bitcoin might have no intrinsic value, but neither do government-issued fiat currencies and therefore the market should determine its value.

According to Blair, instead of essentially trying to spark "cock-fights" between fiat and crypto, the government should focus on disclosure, education, fraud prevention, and should be able to ensure the fact that a monetary system, whether digital or physical, is not being abused for criminal activities such as money laundering or the trade of illegal assets and data.

In one of our previous articles, we covered Dan Tapiero's view of Bitcoin, explaining why he chose to ride the wave even as a late entry, considering he missed the big pump of late 2017.

In case you're not familiar with the name, Dan Tapiero is the founder of DTAP Capital and one of the most prolific macro-investors around, who believes Bitcoin is an invention rivaling the invention of electricity and the internet.

Tapiero states that whoever Satoshi Nakamoto was, he must have created Bitcoin as a response to the global financial crisis of 2008, hence Bitcoin is more than just a viable safe-haven for an upcoming recession according to the macro-economist.

Unlike traditional physical assets, Bitcoin offers functioning stability regardless of its current price, liability, and transparency of transactions (no sudden billionaires out of nowhere), as every transaction on the blockchain can be tracked and displayed in the future.