Nowadays, the coronavirus and the deadly COVID-19 disease seems to be on everyone’s minds, especially with its effects on stopping and slowing down the global economy. According to one futurist and author named Daniel Jeffries, there are two possible outcomes waiting for Bitcoin in the aftermath of COVID-19.
In one specifically dark scenario, the global economy will plunge into a recession which will be severe – and countries will turn to authoritarianism so that they can survive. In an event like these, the world governments will impose capital control measures and curb the citizens’ financial freedom. Authorities will continue cracking down on cryptocurrency to prevent people from circumventing their restrictions. Jeffries said:
“Governments will swiftly move to destroy all centralized exchanges and local Bitcoin operations. Then how much is your crypto worth? It’s worth nothing.”
According to him, Bitcoin is still “an early alpha technology.”
However, in an alternative scenario, the cryptonews could show good things. A COVID-19 induced global crisis can also accelerate innovation, pressuring crypto to evolve into a complete ecosystem that offers goods and services on a large scale – something “besides just money.”
With this approach and the two possible outcomes, Jeffries invited the crypto community to “think more comprehensively.” He said:
“You have to think about it at a macro scale. You have to think about buyers and sellers. You have to think about the average user. You would need to think about alternative distribution mechanisms and scale. It’s not enough to solve just one of these problems. You have to solve all of them in order to build a robust community”.
To Jeffries, it is clear that the narrative of Bitcoin as a safe haven asset was disproved in the latest market crash. Still, he thinks that BTC can still be valuable as proof-of-concept for other technologies. When asked about the real value of Bitcoin and where that resides, he said:
“The idea that you could build a decentralized consensus system without a centralized power behind it and that you could make that system work over a significant period of time.”
In conclusion, Jeffries spoke about the two possible outcomes but said that the world is better prepared than ever to face a global pandemic – especially because of the ease of access to information and therefore advice for fighting COVID-19.
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