About Corona Virus
Corona Virus is a virus that emanated from Wuhan province in China. Though the real source of this virus is still yet to be determine, it spreads very fast by just coming in contact with individuals or surfaces infected with the virus.
At the moment of typing this article, vaccines are still being developed and laboratory tests are being carried out to find a cure to COVID-19 as it is officially called.
Outside China, Italy has been especially hard hit by COVID-19 and to date 366 have died and more than 7,000 have been diagnosed with the virus.
Overall Markets Reaction to COVID-19
The overbearing effect of a Global Epidemic will lead to a catastrophic crash in the World Economy. We saw this effect play out in the Global Markets crash of 9th March 2020. Major commodities ranging from Crude oil, Stocks and Cryptocurrencies saw a sharp crash.
Dow futures dropped more than 1,200 points (4.6%), S&P 500 futures fell 4.89% and Brent Crude fell 30%. The only commodity that wasn’t hit by this sudden market crash is Gold.
Bitcoin price has not been spared, we also saw it suffer a double digit loss and in the process touched a new low at $7,675. The majority of top-20 altcoins followed suit, dropping by double digits. Ether (ETH) corrected 13.67% and pulled below $200, Bitcoin Cash (BCH) dropped 17.67%, and XRP lost 12.17% of its value.
Currently there is so much panic in the Global markets, people are beginning to brace up for a global epidemic due to COVID-19.
Where Cryptocurrency Comes in?
Looking at the Global Markets crash of 9th March due to fears of COVID-19, you would begin to see where cryptocurrency can come to the rescue. One important feature of crypto is there are digital in nature which means they can’t be seen physically or touched. With fears of COVID-19 being spread through coming in contact with infected materials, you would realize someone can get infected with COVID-19 through coming in contact with infected paper money.
The World Health Organization (WHO) has advised that people should stop using banknotes and make contactless payments instead to prevent the spread of the coronavirus, the World Health Organization has warned as the spread of the virus continues to escalate.
The International body had advised customers to wash their hands after handling cash because Covid-19 can remain on notes ‘just like any other surface’ for several days. But the health group has now advised against people using them in favour of digital transactions.
Both China and South Korea began disinfecting and isolating used banknotes as high infection rates sparked public official to rush to disinfect public places.
Officials used ultraviolet light or high temperatures to sterilise the bills, then sealing and storing the cash for 14 days before allowing them back into circulation.
This is a major point of concern for Governments that must be given attention now by looking at digitalizing money.
In my opinion this is where cryptocurrencies come to the rescue, as digital currencies cannot be held or seen physically. If a Global epidemic plays out people will still need to spend money, but through the use of cryptocurrency and other digital forms of money people won’t come in contact with infected paper money. This can play a vital role in halting the spread of COVID-19.
This is the right time for the adoption of Cryptocurrency and Blockchain Technology by the IMF, Governments and Financial Institutions around the World. We have also seen people come out in the past few weeks to predict that COVID-19 will push Bitcoin and other Cryptocurrency prices to new All Time Highs (ATH) in 2020.
Do you think we will be seeing this happen in the coming weeks or months of 2020?