Coronavirus

Coronavirus refers lately to the covid19 virus, which causes SARS-CoV-2 sickness. At the same time, the common cold is caused by the coronaviruses too. As common cold spreads very easily, so does the covid19 as well.

Most of the governments responded to the Coronavirus with the lockdowns.  While a good idea in fighting the virus, this resulted unfortunately in stopping the economic activity in most of the world. The economic recession will follow. This recession will be bigger than the 2008 financial crisis, it will be comparable to the 1929-1933 Great Depression.

The response strategy to the economic recession has so far been the same as during the 2008 financial crisis – it’s massive new base-money creation by the central banks and massive government stimulus programs (which need to be financed by someone too – on the end via the central bank money printing).

However, there is a key difference with the 2008 financial crisis:

• 2008 financial crisis was at the first-hand banking crisis, which was more or less contained. There was spillover to the real economy, which caused then the Great Recession
• The coronavirus economic crisis is a crisis in the real economy. It’s a demand shock and a supply shock simultaneously. The result will be comparable to the Great Depression

Our analysis focuses on what is the impact from the coronavirus to the economy, to the crypto, to the blockchain-based finance, to the investment strategies and monetary system. Our analysis includes as well a roadmap for the next 24 months. Have a look at our blog articles or videos on our YouTube channel.