CORONAVIRUS HAS REVEALED ALREADY EXISTING FACTS: TRADITIONAL ECONOMICS AND BITCOIN
The Coronavirus outbreak, which has affected the whole world, has exposed the shortcomings in the economy as well as health...
The coronavirus, or COVID-19, first seen in Wuhan, China in December 2019 and then taking effect in waves all over the world, continues to affect people's health as well as the economy. In many parts of the world, including our country, small businesses make decisions to either close down or lay off their employees, while large and corporate firms either want their employees to continue working in offices through various measures or switch to working from home.
On the other hand, more than 3 million people are out of work due to coronavirus alone in China, where the outbreak occurred. Closing companies, firms that choose to withdraw from the country, small businesses that have to shut down, and therefore thousands of people who work here but are currently unemployed…
Most governments around the world are aware that they will experience them in the future. Therefore, they apply various economic incentives and take measures to intervene in the diagnostic phase of the issue. So, are they doing this just because they care about their citizens, so people don't run out of money? Or is it the government itself that really matters and the big “sine qua non” companies operating in the country?
Economic Measures Taken
First of all, I want to mention America. America has already been taking a variety of measures, such as the Fed printing money for too long, and interest rates that are constantly being implemented, eventually dropping to zero. Economists have repeatedly said that these moves will reduce the value of money in the near future, while purchasing power will fall in parallel and this will increase inflation. It's not so hard to analyze America's steps in this way anyway. Anyone who follows the economy can make those inferences.
In addition, the United States has announced that it will take many additional steps due to coronavirus. The first and most notable of these was the $ 1,000 that would be distributed to the citizens without pay. A few of the following sentences can easily be inferred as “the United States printed the coins, now distributes them to the citizens”. But of course that is not the case. I actually thought “ " What Will America ask the citizen in return?"here comes the question. And America, of course, doesn't forget the companies that are the cornerstone, and it offers them measures such as a $ 500 billion tax cut. But I would like to point out that the steps taken by the US are not only affecting Americans, we will see traces of these steps all over the world as the dollar is seen as a reserve currency and a global currency... at this point it will also come into play: Bitcoin!
In addition to America, Europe, which has become the epicenter of coronavirus in recent days, is taking similar steps with the United States. By the way, let's take a look at the size of the packages that European countries have earmarked for economic stimulus and measures.:
• France: 345 billion euros
• Germany: 550 billion euros
• UK: £ 350 billion
• Spain: 100 billion euros
• Sweden: 31 billion euros
• Italy: 25 billion euros
In addition to America and Europe, various economic measures were taken in our country with the statements made yesterday. But Turkey's steps appear to be more plausible, and measures that will do less damage, even if they do suffer in the future. Among the economic measures taken within the scope of coronavirus in our country; domestic air transport for a period of 3 months in the VAT rate from 18 per cent to be reduced to 1 per cent Accommodation Tax implemented until the month of November, Citizens for social purposes and advantageous of the loan package on terms that are appropriate for commissioning to encourage to continue support of the minimum wage legislation, making remote working more effective and flexible model TL 1.500 and includes such steps as may be upgraded to the minimum pension.
In fact, coronavirus has revealed many setbacks on earth right now. Many things have come to light, such as inadequate health care systems, lack of transparency by governments, cracks in the economy, the collapse of the traditional financial system and the importance of Keeping Up with technology.
Although they were mentioned before and it was stated that they would cause a lot of trouble for us in the future, the effects were not seen because “the snake that did not touch me, a thousand hurrah” logic was not heard by anyone. But that” thousand living snakes " unfortunately touched both health and the economy.
Firstly, Bitcoin had already emerged as a result of a financial crisis and was intended to be traded as a deflationary asset in the next financial crisis. Bitcoin's move with global markets and gold has been interpreted as actually “ballooning” the whole bitcoin narrative. Because people thought,” How Does Bitcoin fall like that, how does it make us lose, then Bitcoin is a bad thing." But what really happened was simple: both individuals and institutions, alarmed by the epidemic, began to cash in on all their assets. After all, the time was not a time of investment, but a time of self-preservation. So people with Bitcoin in their hands also cashed in their Bitcoins and other cryptocurrency investments, such as those selling gold and disposing of stocks.
In fact, this proved that bitcoin investors also act like normal investors, and Bitcoin is actually an asset that can be instantly cashed in. So as people fear, neither Bitcoin is a "magical asset" nor Bitcoin investors have " superior capabilities” …
Second, after this period of crisis is over, countries will want to reclaim the money they spent. In this case, the central banks, tax authorities and big companies will come into play again. But the public reflection of this will probably be negative.
But imagine that you have control of your own money... in which case the government can't make an extra request or force you to do so because it does what it has to do.…
Third, let's assume that Bitcoin payments are widespread, paying for your bread from the market, coffee from the cafe or sweater from the store with BTC. In this case, you can make your purchase by contacting people in a way that is much less than what is on normal money and credit cards. Because you don't need any physical contact to spend with Bitcoin.
So looking at all this, Bitcoin seems to be a good method of avoiding contact, both in the economy and during the epidemic. Perhaps the Coronavirus outbreak that ignited the roving of a crisis and exposed what actually exists could be an opportunity for Bitcoin to prove itself…