Corona Virus, Global Economy and Cryptocurrencies

As the world burns the past few weeks, I will take a step forward and talk about the global economy and crypto in correlation to the corona virus pandemic.

As most of you who read the daily economic news you all have noticed that global economy doesn’t look good. Things were going down even before the virus started spreading, what the virus did was to accelerate that downfall. The acceleration was so fast, that shocked me at the first glance, but on a second thought, I would really say that it should be expected for a crumbling economy like this. Now everyone runs like headless chickens trying to liquidate some of their assets and some can’t even do that. If 2008 was the year that global economic nearly collapsed, the global events of 2020 so far indicates that we could see something even worse than 2008.

The same happens in the crypto space too. People are liquidating some off their assets to stock supplies. It means they are selling so the price will go down.  So, I suppose the pandemic also affected crypto in that way too. Keep in mind that we are not anywhere near the end of that situation. Crypto and markets will continue to go down until most people feel a bit safer.

Corona Virus Is More Serious Than What Most People Believe

“But, it is only just a flu!” some will say. I am not an epidemiologist neither a doctor but I am aware of how the micro world works and how society works in terms of everyday normal life. I will give you a small hint in order to understand what really happened to Italy. As of today Italy is in a country wide quarantine, as news websites reported yesterday, late at night. Everything started in Italy because of one man from Germany who disobeyed his company’s orders to stay at home for 14 days, after he was tested positive for corona virus. That man apparently felt bored after a few days at home and decided to visit Italy and “watch Italy burn” afterwards.

So if it takes only one man to put a country of 60m people under quarantine measures, imagine what will happen as hundreds or even thousands do the same as this man. In my opinion if the rest of European Union doesn’t take serious measures against the virus to limit spread, what happened to Italy will happen everywhere. So I guess, it is going to get a lot worse before it gets better.

As for the economy, it is clear that people with enough money in the market already know all these, since they are basically shorting the markets. You might think that selling isn’t shorting, but in a sense it is. Short and long positions are like bets, so if I am selling at a time like this, I am basically betting that the current market will go even further down. And when it reaches its bottom they going to buy whatever survived the fall.

How To Protect Yourself

To close this article, I would like to give some advice as a fellow human about the situation and how to protect yourself and those around you as much as possible. Always wash your hands, especially after interacting with other people and/or objects that have been used by other people. Limit your trips. As world health organization said symptoms might appear even 14 days after exposure to the virus. This effectively means we can’t be really sure who has it and who don’t. Try not to touch anything in public that you don’t have to touch anyway. If for any reason you feel ill and have any of the symptoms related to corona virus, DO NOT VISIT A HOSPITAL, there are procedures and instructions in every county about what to do in that case, commonly starting with contacting the hospital by phone and following their instructions on what you should do.

As a last advice, all I can say is don’t let panic mode get the best of you, do better research, don’t listen to religious leaders especially those of the Orthodox church who are committing crimes against humanity, in order for them to not lose believers from their churches.

As a Cryptocratist, I favor science over faith and humanity over money, have a nice day and thank you for reading. Any opinions about economy in this article are mine aren’t meant to be used as a financial advice.

Comments (No)

Leave a Reply