Considering the economic repercussions and the impact of various financial markets on the coronavirus, the research arm of crypto exchange BitMEX has concluded that the pandemic will force unprecedented changes to economic systems.

U think BitMEX platform that Bitcoin can really thrive under these conditions.

Corona virus and its impact on the global economy:

The stock market and crypto crash caused by the Corona virus has become a historical event, and has been interpreted by BitMEX as one of the biggest crashes alongside the 2008 global financial crisis, the 2000 dotcom bubble, and even the Wall Street crash of 1929.

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Looking ahead, BitMEX treated this crash with more optimism thanks to the existence of Bitcoin.

Noting that the value of Bitcoin has fallen by just over 50%, it seems that research platform BitMEX thinks that this incredibly volatile cryptocurrency could shine in the wake of inflation.

BitMEX sees markets and the traditional financial economy in general, if the economic landscape fails to adapt.

BitMEX notes that previously, the response to the 2008 crash was to cut interest rates from 5.25% to 0.25%, similarly the 2000 Internet bubble caused rates to drop from 6.5% to 1%.

A team at BitMEX Research wrote:

Federal Reserve policy relies on models that assume that monetary policy does not affect the structure of the economy, and instead merely mitigates the flow in which money flows through the system.

However, in our opinion politics has become so extreme that this is no longer the case.

Federal Reserve policy has become the primary driver of change in the structure of the economy.

Regardless of one’s view of monetary policy, there can be no doubt now, the current system cannot withstand another crisis.

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It’s time for change.

Bitcoin opportunity:

Given the inability of people to work in certain environments and the curfews and other national decrees in place, it is normal for governments to be under severe pressure from the public who may find themselves unable to pay rent or have sufficient resources to cope with the current crisis.

The inflation shock could be a secondary driver of the impending economic downturn, according to BitMEX.

A sharp decline in the ability of companies to trade, industries that have come to a standstill, and layoffs will require a lot of care and attention from governments.

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Without adequate compensation for job losses, inflation and potentially weakening national currencies in the wake of the coronavirus, bitcoin may be an asset and a safe haven if things get out of hand, as happened in Venezuela.

The exchange predicts that the world may be heading into an era of inflation similar to the 1970s, when volatile inflation reached its highest level at 15%.

Despite this, BitMEX expects that changes in the economic system as a result of the coronavirus problem could prove to be true.

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