Coronavirus is Expensive for the Economy

The COVID-19 pandemic continues to kill the global economy. When the virus recedes, it will be possible to evaluate the crushing blow. The world will be on the verge of a recession or global financial crisis. According to the prediction of GoldmanSachs GroupInc. economically developed countries will end up with losses of up to 35%.

This figure is called for the second quarter of 2020 and compared with the first. If we draw an analogy, then the 2008 crisis was at that time a record, but the damage caused was 4 times less.

Unlike fiat assets, cryptocurrencies have a forecast for growth, despite the pandemic:

  • Bitcoin fell in March when investors fled from funds and simply risky instruments. But, the correlation of Bitcoin and major altcoins with traditional assets is much less than you can imagine.
  • In about a month, Bitcoin will receive a new reward scheme. The event will clash in the competition of miners. However, if the story repeats itself, the BTC will appreciably rise within a year after halving.

However, infectious disease specialists expect an imminent peak of the pandemic, after which the impact of the disease on business will weaken and governments will try to restart the economy. For example, according to Ian Hatsius, an economist from New York:

The decrease in the incidence rate is a direct consequence of social measures and the decline in economic activity. Everything can quickly get into a rut if people manage to return to work.

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