The coronavirus was first detected in China in December 2019. At the onset, it did not paint a grimly ravaging picture the world has been accustomed to the past few weeks. An overview of the year 2020 according to the European Union projections showed that the region would grow modestly. While the report factored in the effects of the virus, the report concluded that not much harm would come as a result of the disease. Fast-forward to about a dozen weeks later and the story is not the same again; the EU and indeed the entire globe is sliding into recession!

Less Talk About Bitcoin Mixers, More Perception on Coronavirus Pandemic

We are all about security and privacy here. However, today we want you to take a minute to forget about anonymity, tumbling Bitcoins and the entire narrative around crypto mixers. Instead, we prefer to join the world in thinking for a bit about the cryptocurrency space and the damage, if any, that the spread of coronavirus has meted upon this space we all love.

Here is a chronology of the disease highlighting notable events this far.

December 31

The Chinese authorities in Wuhan confirmed on December 31, 2019, that the health officials in Hubei Province had treated dozens of cases of pneumonia. The cause of the said pneumonia was not known at the time. Days later, the country’s researchers identified a virus that had spread to tens of people in Asia.

January 11

China, through its state media, announced the first known demise of a coronavirus patient. The patient was a 61-year-old man who exhibited symptoms of chronic liver infection.

January 20

South Korea, Japan, and Thailand confirmed the first cases of coronavirus outside China. The U.S. reported its first case a day later. A male resident of Washington State in his 30s started showing signs of the infection upon his return from a trip in Wuhan.

January 23

The first lockdown was enforced when China closed off Wuhan. The authorities canceled flights and train trips out of the city and suspended intra-city bus, ferry and subway transport. By this time, China has lost at least 17 people while another 570 in Japan, Thailand, Taiwan, South Korea, and the U.S. had developed symptoms of the disease.

January 30

The World Health Organization (W.H.O) of the United Nations moves to declare a state of public health emergency of international proportions. This announcement followed the emergence of thousands of new cases that were reported in China.

January 31

President Trump suspends travel from China. This ban included individuals who had visited China inside 14 days from the day of the notice. However, the directive excluded the immediate family members of permanent residents of the U.S. as well as American citizens. By the time of the notice, the world has lost 213 people to the infection with almost 10,000 worldwide exhibiting symptoms.

February 2

The Philippines reports the death of a 44-year-old male that resulted from coronavirus. This was the first death reported outside China. By then, the disease had killed almost 400 people.

Up until March 19, 2020, when China reported zero new local infection for the first time since the disease broke out, a lot more has happened. The death toll now stands at about 20,000 with some 415,000 confirmed cases. The good news, however, is that more than 100,000 individuals have recovered from the virus.

The ramifications to the enterprise, in particular, has been devastating, for lack of a better word. Here is a look at some of the impacts on the financial markets.

The Black Friday in Euro Stocks

The travel advisories and lockdowns that have been imposed in several parts of the world have come with far-reaching economic damages. China, for instance, has seen reduced production and its short-term development index reduced to double digits. Also, projections show that the American economy will record a 15% reduction in its growth in Q2 of 2020.

The impacts, however, are not confined within the U.S. and China. Granted, China was initially the epicenter of the disease. However, far-flung places like Europe have paid a heavy price because of the reduced industrial production they currently experience.

On March 8, all the major European stocks plunged. FTSE dived as did the German DAX and France’s CAC. Overall, the European index STOXX 600 shed 7% that day to end 340.83. This figure represents a drop of almost 20% from the year high of 433.90.

Trouble in Wall Street

The afflictions that befell stocks in other parts of the world were replicated in Wall Street. On Monday, March 9, 2020, the Dow Jones Industrial Average closed the day down 2,000 points. This plunge was due to the massive global sell-off that saw the stocks in the energy sector drop drastically.

The result eroded almost all the gains that the index has raked in its 11 consecutive bullish years. This was Dow’s biggest drop ever. It plunged 7.8% with Nasdaq going down 7.2% and S&P 500 diving 7.6%.

To worsen the matter, oil prices tanked by 25%. Though the drop in the price oil had a lot to do with bureaucracy than the real situation on the ground, the economic ramifications were far-reaching either way. Besides, they further compromised the stability of the already shaken global economy.

The Effects of the Pandemic on the Cryptocurrency Markets

The spread of the deadly coronavirus as wiped everything in its path leaving a trail of destruction and ruin. The stocks are down and bonds have suffered as well. The Federal Reserve as well as central banks of Europe, England, Australia, Canada, India, and Japan, among other nations, have had to cut their base lending rates to historical lows. And, even these measures seem inadequate to contain the tide of destruction that the coronavirus pandemic has meted on the global economy.

Initially, the slide was bad for cryptocurrencies as well. The rush to liquidate equities and the elaborate sell-off that governments undertook to raise enough cash to prepare economies led to massive bleeding in the cryptocurrency markets.

Bitcoin that attained the psychological $10,000 sometime in February 2014 shed about 60% in just 48 hours to record a yearly low of just over $4,000.

Though Bitcoin has managed to rake in some gains, it is still exchanging at around $6,500 by the time of doing this piece.

By the way, the massive sale of Bitcoin noted around this time came with the increased use of crypto mixers among folks that were tumbling Bitcoin. This shows that despite the rush to buy and sell, the need for privacy is not lost on cryptocurrency enthusiasts.

Positive Predictions

Bitcoin is the worthy contender of the coveted title of the global reserve currency; the same position that the U.S. is currently holding. In the short term, the coin’s prospects of getting to this position look bleak since the demand for the dollar has created a surge in the value of the greenback. Besides, the global adoption of Bitcoin is only gaining steam.

However, there is a looming recession and one that only favors Bitcoin. Again, this is another reason why tumbling Bitcoin via the best crypto mixers should be a priority. Anyway, that is a story for another day.

Aside from slashing base lending rates, governments have spent massively in bond buybacks. Some, such as the U.S. government is sinking even more money into the economy. Coupled with the need to provide insurance covers for the workers that are currently on lockdown, the world will soon witness inflation of unimaginable proportions.

The issues highlighted above, the very same that will flair inflation, have been instituted to tame the effects of the coronavirus pandemic.

While inflation of such magnitude is not good news for the dollar, it is music to Bitcoin enthusiasts. Yes, increased use of Bitcoin will bring in more attention, and probably, decreased privacy in the space but that is what Bitcoin mixers are for.

Overall, the situations seem bad across the board because of the coronavirus pandemic. However, sectors the reposition accordingly stand to gain big time when the global economy rears its head above the current harsh effects.

In Summary

The year started on a high; everything was looking great. However, economies have realized that the effects of a global pandemic can have far-reaching effects. As stocks tumble and bonds dive, there are going to be serious losers and the occasional winner. At the moment, the winner seems to be Bitcoin, which is poised to succeed where fiat has failed. As the world watches, crypto enthusiasts would be wise to watch and see what blessing the coronavirus pandemic may bring. To the cryptocurrency space, this killer virus may prove to be a blessing in disguise.