Coronavirus Unveils Differences between Bitcoin and Traditional Economy

The coronavirus epidemic, breaking out in Wuhan, China in December 2019 before spreading all over the world, has shown drastic effects both in terms of health and economy.

Globally many small businesses shut down their businesses one by one, including in Turkey. Institutional companies have increased their precautions and switched to work from home in order not to endanger the health of their employees. On the other hand, the economic effects of the epidemic began to appear in China. There are claims that more than 3 million people are unemployed in China only because of the coronavirus epidemic. Many countries laid out plans to combat the virus. Various economic incentives and measures are taken tightly.

For example, the USA took certain long term economic measures; we see that Fed is printing money and offering zero interest rates. However, economists constantly state that the implementation of these movements will seriously reduce the value of money in the coming periods and the purchasing power will decrease as a result.

In addition, the United States shared with the public that they would take many additional steps in combat with the coronavirus. However, we can say that Americans are not affected by these additional steps. It is inevitable that we will experience great negative effects in a world where the dollar is seen as a reserve. At this point, digital assets take to the stage!

Europe has become the coronavirus epidemic center recently. When we look at the economic measures taken in Europe, the sizes of the packages are as follows:

France: €345 billion

Germany: €550 billion

UK: £350 billion

Spain: €100 billion

Sweden: €31 billion

Italy: €25 billion

The Bitcoin Corridor

The coronavirus has revealed many hitches around the world. Failure of health systems, non-transparent government disclosures, economic troubles and collapses in the traditional financial system were unearthed.

When we look at the history of Bitcoin, it was also a response when it came out after a financial crisis. People and institutions panicked due to the Coronavirus epidemic began to cash their assets. Due to economic problems, steps were taken to protect their assets rather than investment. As a result, users converted Bitcoin and other cryptocurrency investments into cash.

Looking at the conclusion we will draw from all this, Bitcoin seems to be a good method since it is both economically and contactless during the epidemic period.