On several occasions we have exposed on the subject that is causing chaos throughout the world, being the dreaded Coronavirus. In particular we have analyzed their relationship with Bitcoin, cryptocurrencies and the world. Therefore, on this occasion we decided to present the comments of experts on the subject.
Shine like gold, fail like gold
Starting with the negative end of the opinions in general, from the hand of one of the most popular investors in Asia, being Qiao Wang. Wang can be compared with Buffett in terms of investment success, given that Wang is recognized for his success in investments in terms of technology. In addition, he is famous within the crypto community for his analysis of the market situation and projections for the future.
Precisely the last point is what interests us, given that Wang commented on the situation of Bitcoin and the Coronavirus. He argues that Bitcoin currently has a role similar to that of gold when there is a global crisis, similar to that of 2008. It can temporarily serve to save value, but eventually it breaks down, losing its faculties and value.
Therefore, he says that companies that have large amounts of Bitcoin should have contingency cases in case Bitcoin breaks down due to the global crisis. This position can be observed in his response to Novogratz on Twitter:
“I’m sorry to put a pin in the bubble, but Bitcoin was traded as an absolute shitcoin in recent weeks. If it is an encryption company or has a large amount of encryption, you should probably start thinking about protecting yourself against a slight global recession. ”
It will shake, but it will remain
Continuing with a less negative stance, using as reference the comments of an old founder of Bitcoin Foundation, Bruce Fenton. This character has been in the crypto community for a year, so he has several followers because of his way of thinking and acting within the crypto market.
Through his social networks he shared his position regarding the current situation in the world, particularly with the financial markets, Bitcoin and Coronavirus crisis. He argues that thanks to the crisis generated by the disease worldwide, the stock exchanges, actions of companies and economic measures of the countries will be unstable for a time. This is due to the fact that they must protect themselves from problems caused by the stagnation and deceleration caused by the virus in the world, as is the case in China.
However, he argues that cryptocurrencies do not escape this instability, since, in the end, they are part of the financial market. A clear example is Bitcoin, arguing that its bases are strong for the long term, but now uncertainty will hit hard.
“I would remove some cryptocurrencies from the table until this is shaken. Even Bitcoin will probably be affected by this. The long-term fundamentals must still be solid. The use of limited supply money could be even more attractive. But a speculative and volatile asset will have difficulties. ”
Mining is maintained
Now we have a more positive position than the previous ones, which is an opinion about the logistics issue, rather than monetary or financial. For this occasion we bring three experts on the area of Bitcoin and Coronavirus, being characters that we have exhibited on multiple occasions. We refer to Adam B. Levine, Dr. Stephanie Murphy and Andreas Antonopoulos, sharing your comments on podcast number 429 of Let’s Talk Bitcoin.
One note, if you know English and are interested in various topics of the crypto market, we invite you to listen to this podcast series, since they bring special guests from all over the world and treat topics in an entertaining way.
Returning with their position, the participants expose a position that favors and thanks the miners for the world, since they have kept working. The comment arises when comparing the response of countries like China to the Coronavirus, stopping complete work plants. However, the miners have remained active.
One way to justify this position is the difference between the centralized versus decentralized production model. It is proposed that in the face of this type of crisis, it is evident that if the center cannot handle the situation, the entire line is broken. While in decentralized systems, the community is an active part of the organization against the crisis.
Breaking monetary paradigms
To finalize the article, we again use the comments of the same characters as before, since in the podcast they pose an interesting posture. It could not be defined as positive or negative for Bitcoin, since it is somewhat philosophical.
The three enter into a discussion about an important impact that Coronavirus had on people’s perception. Like Wang, they compare this situation with the 2008 crisis, given that financial markets are suffering globally. Although there are less affected countries, such as those in Latin America, the others have had to rethink the use of money.
For example, the cases of the United States and China, which issued contractual monetary policies to stabilize their money market. This means that they raised their interest rates to control the issuance and use of money within their economies.
Faced with this situation is that Bitcoin, and in general digital currencies, begin to be reconsidered to be used as money. Therefore, they suggest that this phenomenon has caused an impact on people’s perception of money, highlighting that it is a philosophical issue, without being materialized in reality.