The entire world is confused and shocked due to the growing rate of people getting affected by Coronavirus. Till now, the deadly virus has caused thousands of deaths worldwide. From bankers and lawyers to digital marketing analysts and crypto miners, this deadly infection has affected the careers of thousands of employees worldwide. Moreover, no Vaccine has been developed so far to cure this infectious disease.
Coronavirus is more infectious than SARS
The death toll in countries such as Italy and the US is rising every day. The death rate of Coronavirus has surpassed the death toll of SARS which affected hundreds of lives in China during the 2000s.
Coronavirus can cause serious economic damage
Epidemics like Coronavirus can damage the economies of countries where people are unable to control it. There is no doubt that coronavirus is already causing some severe economic damage across different industries on a global level.
In this blog, we will discuss how coronavirus can negatively impact the functioning of the blockchain industry.
How does coronavirus spread?
The deadly disease was first reported at Wuhan in 2019. The WHO has declared it as a global pandemic. Many countries are facing a lockdown or have been practicing self-distancing and self-isolation. Other than China, the economy of the following countries has been severely damaged by the coronavirus.
- Australia
- Italy
- Canada
- Pakistan
- India
- Japan
- Malaysia
- Singapore
- South Korea
- Taiwan
- Thailand
- UK
- USA
- Vietnam
- UAE
Are there any vaccines available?
The threat and fear of the deadly disease has been growing at an exponential rate. The whole world appears to be clueless and unprepared for a global pandemic like coronavirus. With no effective treatment available to cure coronavirus, a lot of countries have banned their people from going to China.
Governments have been taking appropriate measures to bring back their citizens from China after conducting several tests on them for Coronavirus.
How can coronavirus effect the global economy?
Similar to SARS and other global pandemics, Coronavirus is believed to create a huge negative impact on the global economy. One of the main reasons why coronavirus will affect the international marketplace is because it started in China which is one of the biggest consumer markets in the world.
How will coronavirus affect the economy of China?
There is no doubt that the coronavirus will impact the economy of many other countries other than China. Most of the major local and international businesses and industries in China are shutting down. This will lead to an increase in the prices of those commodities than China manufactures and exports heavily.
China’s GDP is also expected to drop drastically. There is no doubt that the crypto industry is one of those few industries that became vocal about the damages and dangers associated with this deadly disease.
How will coronavirus affect the global blockchain industry?
A lot of organizations including Tron and Binance Charity donated heavily for this cause. Apart from North America, today, China is considered one of the largest markets for the blockchain industry.
Apart from the growing sales, China hosts the most number of blockchain startups in the world. It gave birth to some of the leading crypto organizations such as Binance, TRON, and Huobi. This clearly shows that China is the center of all the events and activities revolving around blockchain and cryptocurrencies.
Moreover, China is probably one of the largest markets for crypto adoption. Although not a fan of the cryptocurrency itself, President Xi Jinping is an active supporter of the blockchain technology. From instant money transfers to smart identification and custom software development, the blockchain industry has evolved a lot in China and other countries on a global level.
Keeping all these factors in mind, it is safe to say that China is a hub for blockchain and cryptocurrency development. Any form of negative slowdown in China can severely affect the global figures.
Over the years, the Chinese government has not supported the idea of cryptocurrencies. People’s Bank of China even banned the trading of cryptocurrencies. Nevertheless, China is the hub for other blockchain activities such as crypto mining.
The global crypto mining industry generates thousands of dollars every month from China. The Bitcoin mining operations in China appears to be so dynamic, that the Mongolia Province imposed a limit over the blockchain activities within the region.
Due to the outbreak of the deadly virus, if major industries and businesses are locked down including the mining industry, then the generation of fresh blocks won’t be possible.
Due to a lack of economic crypto activities, several payments related to cryptocurrencies have been dropped down significantly. This is a major setback for the blockchain industry at a global level.
Conclusion
If the situation remains the same, the global economy will face a temporary stagnation. This is an alarming sign for the crypto industry which is already shaken due to the outbreak of coronavirus. If the situation is not controlled in time, the whole blockchain ecosystem can become volatile and harmful for the global economy.
