In the last century, mankind has never faced an enemy as strong as the Coronavirus. Not since the Spanish flu in the second decade of the 20th century has there been a disease with such catastrophic consequences as Covid-19. And not only for people’s health, but also for the world economy. That’s why Jimmy Song comments in today’s Tweet that the Coronavirus crisis is a test for altcoins.
Coronavirus (COVID-19) may have been a blessing for the Blockchain
Altcoins versus Coronavirus
Despite the strength of the U.S. economy, for most of 2019 experts debated the possibility of the U.S. economy entering a recession. However, no one imagined that the economic crisis could come in the form of a global pandemic like the Coronavirus.
Since its arrival in the West in March of this year, the Coronavirus has forced the interruption of commercial and manufacturing activities around the world. Causing what some experts do not hesitate to consider the beginning of a new global depression. A situation that affects all countries and markets, including that of cryptosystems.
Short-term analysis of altcoins: BCH, BSV and LTC
But, although rivers of ink have been spilled to talk about how the Coronavirus affects Bitcoin or the US dollar. Little has been said about a group of assets that are now, more than ever, facing a litmus test due to Covid-19. We are referring to the altcoins, the alternative cryptomonies to Bitcoin Circuit token expired, Bitcoin Era sepa transfer not showing up, zrx Bitcoin Billionaire rumors, Bitcoin Trader eth confirmations, Immediate Edge xlm stellar, your request is being processed… Bitcoin Revolution, trading 212 vs Bitcoin Evolution vs plus500, Bitcoin Code gdax price difference, transferwise borderless account The News Spy, how to make a sepa payment on Bitcoin Profit that, according to Jimmi Song, are facing the test of their lives:
„The economic recession is an interesting test for the altcoins. During good times, speculation and gambling are rampant. During crises, people run towards liquidity, which is BTC/USD. Which means much less liquidity for the alts or a sharp drop in their price. What do you think will happen?“
In this way, Song explains how, although the effects of Coronavirus on Bitcoin are still uncertain. In short, the liquidity of the market for this cryptomone, puts it in a better situation than the altcoins. They still have to face what could be a catastrophe.