The Coronavirus outbreak has raised a lot of concerns among the global population. One of the major areas of concern so far is the global economy which is currently being ravaged as fear of the pandemic continues to spread.
The U.S stock market, for instance, is falling drastically with Dow recording its highest one-day points fall in history as sell-off pressure tells on the stock market. This has created a lot of panic as the future of the market becomes more uncertain.
IOHK CEO and Co-Founder of Cardano, Charles Hoskinson, however, says there is a way out of the confusion – Cryptocurrency. In a recent Twitter post, the blockchain expert said Crypto is the only reliable hedge against global pandemics such as Coronavirus. He stressed that as the virus continues to spread, the stock market is sure to fall and governments will collapse but crypto will remain as it is digital.
China, the country where the Coronavirus first appeared, controls over 60% of Bitcoin mining farms globally. Earlier this month, several of the mining farms have been shut down due to the Coronavirus issue. This is likely to worsen the scarcity of Bitcoin and make it more valuable at this time that Hoskinson says cryptocurrencies are the only hedge. The same thing may extend to other cryptocurrencies as panic is affecting every form of investment globally.
Hoskinson has always believed that cryptocurrencies and blockchain technology are the solutions to the issues affecting the global economy. He believes even more, that Cardano (ADA) will become the lead cryptocurrency in the near future. He recently revealed that the company is working on new ideas and developments that will make the next two months “wild” for the 12th largest cryptocurrency by market cap.
So far, the cryptocurrency market has not shown signs of gains as the stock market crashes. All top ten crypto assets are on the losing side although analysts say the market may soon recover.
If Hoskinson is right, this may be coming very swift indeed, especially for Bitcoin which many in the crypto space consider being the best safe haven for investors in the event of a mishap such as the Coronavirus pandemic. It will be interesting to see what happens in the next few days and weeks if the panic continues to grow with the falling stock market.