How The Financial World Is Going To Recover From The Effects Of The Coronavirus Pandemic?
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Introduction
Table of Contents
Organizations like the IMF, World Bank and World Economic Forum expect the financial systems to contract in the aftermath of the Coronavirus. Most European countries are stated for negative growth and will most likely go into recession once we are through with this pandemic.
The biggest economy of the world, the United States of America too is staring at its biggest contraction. This is going to be far worse than the Global Recession of 2007-08. The two fastest growing economies of the world, India and China are looking at just keeping their head above negative growth.
Should the World look at a New Global Currency?
One thing is for certain- traditional fiat currencies and the market logic needs to change. The need of the hour is to create a single and global currency, which can stand emergencies, recession and other severe problems. Experts are stating that all major economies are going to see a severe devaluation of their currencies.
It needs to be pointed out that fiat currencies are different. They are different in as much as any tangible or physical assets, which dictate their value, do not back them. In the 1970s and 1980s, most national economies used the ‘Gold Standard’ as a way of ascertaining the value of their currencies.
However, America did away with it, and the end of the Cold War, established the ‘Dollar’ as the supreme benchmark. Fiat currencies are manipulative and speculative in nature. This is the reason why they are more prone to failures and volatility.
Fiat currencies are also highly integrated in global happenings. Things like trade wars, natural calamities like the Coronavirus, or earthquakes, or wild fires, can affect the currency. It can also be affected by manmade inflation, balance of payment issues and monetary policies.
Does the Dollar have any future after the recent Oil Price Crash?
Ronald Reagan, the American President requested the Gulf countries to only accept payments for their oil in dollars. This was very much the central factor, which established dollar superiority in the world.
However, the Coronavirus pandemic saw the world witness a situation, which it had never seen before. This made the entire world community stand up and take note. The global lockdown means that there is no requirement for oil.
It also means that almost all the major stocks of oil in different parts of the world are full. OPEC and Russia are involved in a global price war over oil. With no country requiring oil, it has set in motion a chain of cyclic events leading to global financial crisis.
Can a New Cryptocurrency based currency help the World overcome such a crisis?
Bitcoin has been around for more than a decade. It continues to be a strong driver for people looking for alternative financial investment options. With Bitcoin withstanding the effects of the Coronavirus pandemic and climbing over the $8500 mark, experts are rooting for the cryptocurrency.
While the entire world is turning towards https://bitcoins-era.io, governments, policy makers and international organizations are waking up to this reality. Bitcoin and other crypto are not affected by pandemics. They are also not influenced by market problems like inflation and recession.
While Bitcoin continues to rally strongly, several big names on Wall Street are pushing the new financial asset as a stable investment option to their clients. The rise of cryptocurrency exchanges and trading platforms has also given rise to newfound interest in Bitcoins and other cryptocurrencies.
The year 2020 is going to be crucial for both traditional fiat currencies as well as cryptocurrencies. While fiat currencies are expected to keep on crashing, Bitcoin and the profits from the cryptocurrency is expected to keep on rising.
