Deutsche Bank has in a new report said that a Solar Flare is more menacing than the COVID-19 pandemic.
At the beginning of the year, Bitcoin and other digital assets were poised to rise to record levels. The pandemic stopped them in their tracks. The economic effects were the cause of this slowdown. The markets have recovered though with Bitcoin hitting $10,000 in recent times.
Governments have intervened in their various economies and a lot of this money went into the crypto space.
Deutsche Bank believes that the next Solar Flare could be the gamechanger for the world’s first cryptocurrency. The increased brightness of the Sun has a significant impact on communications. Interruptions will become more common than usual.
While most of the World has gone digital, Deutsche Bank believes that most forms of electronic payments will have issues. Then again, the power of decentralization may work well for Bitcoin. Even if some miners get cut off from the Bitcoin network, others will step in to fill the void.
While how this will work remains unclear, Bitcoin still holds the promise of becoming a stable payment medium during this period.
Deutsche Bank says that there is a one in three chance of this happening in the next ten years. This though means that there is a slight chance that things will continue as they are.
As for Solar flares, they have been infrequent. The event last occurred in 1859. This is what increases the chances of another one occurring within the next decade.
It also brings into focus the robust nature of the decentralization of payment systems. If another global crisis occurs and one part of the world is engulfed, another can take its place.
As for another pandemic or war, Deutsche Bank has said that it could happen as well. For now, the World will keep on spinning.
