Coronavirus is very harmful to fiat currencies, not bitcoin - page 9.

Argoo

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Quote from: countryfree on March 13, 2020, 06:52:26 AM

Have you seen how governments responded to the corona virus?

Quite simply, in Italy, the US and elsewhere, they will increase their budget deficit, and add debt. In my understanding, that's very bad for fiat currencies, while BTC will remain unaffected, thanks to the lockdown on money supply.

Bitcoin has not remained unchanged. He lost almost half his price. In the case of the spread of coronavirus, we saw that the real economy and cryptocurrency are very connected. And here it is unlikely that the price of Bitcoin fell due to panic. I don’t see any panic. People were forced to spend extra money in order to prepare for protection against this virus in conditions of temporary isolation. We saw that all markets collapsed, including the cryptocurrency market.

carlisle1

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Quote from: countryfree on March 13, 2020, 06:52:26 AM

Have you seen how governments responded to the corona virus?

Quite simply, in Italy, the US and elsewhere, they will increase their budget deficit, and add debt. In my understanding, that's very bad for fiat currencies, while BTC will remain unaffected, thanks to the lockdown on money supply.

How i wish it was that simple because it is not the Government whos Supporting Bitcoin but the Individuals and their reaction is far from your POint.
Investor now are Getting Out their Money inside crypto and that is what the reality now so expect the effect of this crisis to the whole world either Fiat or Crypto because the most affected are us who is using this currencies.

Quote from: FanatMonet on March 17, 2020, 06:10:22 PM

Unfortunately, as the situation showed, coronavirus is also dangerous for cryptocurrencies, but not directly, but because of the impact on the stock assets, energy resources, and other sectors of the real economy, which incur large losses.

not directly to cryptocurrency but still Domino effect right?and we cannot deny that looking at the chart how the whole crypto market respond to the issue.

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Quote from: countryfree on March 13, 2020, 06:52:26 AM

Quite simply, in Italy, the US and elsewhere, they will increase their budget deficit, and add debt. In my understanding, that's very bad for fiat currencies, while BTC will remain unaffected, thanks to the lockdown on money supply.

I believe currency connected with bitcoin ( as pairs ) if currency fall we will loss value when cash out. I think it's same situation for economy, all in red zone and don't know when will end. Every country take different respond but the purposes is make stability in their public economy, whatever the method. If you can take benefits from government respond/ policy it will helpful so stay positive with bitcoin but always use stop loss.

FanatMonet

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Unfortunately, as the situation showed, coronavirus is also dangerous for cryptocurrencies, but not directly, but because of the impact on the stock assets, energy resources, and other sectors of the real economy, which incur large losses.

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Quote from: el kaka22 on March 17, 2020, 05:58:10 AM

I do not understand how people all around the world think that gold is unaffected by this and they are buying gold like crazy but they are selling crypto for no reason at all. If you think that gold and silver will be really high because of the inflation and bad markets and devaluation and all that reasons, why wouldn't bitcoin be like that as well?

It will definitely be affected in a good way but no people can see that. Hopefully overtime bitcoin will be able to explain itself better to masses so that next time something like this happens we will go up instead of going down like stock markets. We are more correlated with gold than stock markets but for some reason we act with stock markets. Maybe it is because many stock market companies also offer bitcoin as well nowadays.

I believe that even Gold is not a good example here if you point out the physical version of the Gold which will probably come with the infection and may prove to be the buyer's final mistake they'll do, why BTC is the digital version of Gold and should definitely be worth at least 10 times of what Gold is at. A brief explanation of what could be the reason for this crash can be found here - "Game Over" a thread by logictense.

Shasha80

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It's true that corona virus is very dangerous for fiat currency, because fiat currency generally has to make physical contact. And the thing
causing corona virus spread more quickly. Whereas bitcoin all transactions are carried out digitally and there is no need to make contact
physically, so proven to be very safe. The governments of the world should consider bitcoin to be legalized as payment, so that transactions
finance can still happen, without worrying about infected the corona virus.

hahay

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Yes, that is the reason the crypto market does not have a correlation with coronavirus but when the threat becomes greater, then this pandemic will indirectly have a negative impact on the crypto market as it has so far, because if the price drop is so deep it is only due to internal factors, then it seems unlikely the price will drop so deep or just because it's approaching halving but in reality, at least there is still another month for the halving event. That way, I feel very clear when there is a pandemic that it is a big threat to the world economy and at least it has proven to have a very bad impact on any activity in the world.

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Quote from: el kaka22 on March 17, 2020, 05:58:10 AM

I do not understand how people all around the world think that gold is unaffected by this and they are buying gold like crazy but they are selling crypto for no reason at all. If you think that gold and silver will be really high because of the inflation and bad markets and devaluation and all that reasons, why wouldn't bitcoin be like that as well?

Inexperience maybe? Most people in the forum are young so they perhaps never experienced a crisis as big as this one, expect in 2008 maybe, but you have to admit the current crisis could become a lot more important than in 2008

Personally I wouldn't say gold is unaffected, this pas 7 days were a good example but for sure we're in a good period to buy some XAU for a short term profit. On the other side, I don't believe it's a good period to sell your cryptos, I would rather wait some months until the storm is over and the crypto market recovers what it can

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One way or another, fiat systems are associated with cryptocurrency.
Indeed, in the event that big problems begin to arise with fiat, then most of the majority of BTC holders will most likely have to get rid of some of the funds in favor of fiat due to its greater practicality.

el kaka22

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I do not understand how people all around the world think that gold is unaffected by this and they are buying gold like crazy but they are selling crypto for no reason at all. If you think that gold and silver will be really high because of the inflation and bad markets and devaluation and all that reasons, why wouldn't bitcoin be like that as well?

It will definitely be affected in a good way but no people can see that. Hopefully overtime bitcoin will be able to explain itself better to masses so that next time something like this happens we will go up instead of going down like stock markets. We are more correlated with gold than stock markets but for some reason we act with stock markets. Maybe it is because many stock market companies also offer bitcoin as well nowadays.

tbterryboy

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Bitcoin wasn’t able to hold that position for long. Though I’m suspecting that Coronavirus is not the only reason why the price of Bitcoin decreased as of recent. A lot of things have happened and they must have all affected Bitcoin price.

After my research it seems like experts have not come to know what exactly caused the decrease in price. Some of them have said that Coronavirus is the reason since every other market were affected , so why not?. Then others are blaming it on miners for not selling out much of their mined coins to the market. And then we have the PlusToken scam. They have not really arrived at any conclusion, these are not even the only things that might have caused.

FanEagle

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Yeah gold is the key here, if we go to route of gold we will actually be pretty decent as well in price and for investors but not that much for the shopping spree with bitcoin payments and all that life. If we go to fiat route tho we will be digital fiat, even fiat is digital these days so it wouldn't be really all that different. Bitcoin has to decide on what it wants to be first, we are acting like we are both a commodity and a currency and they have been long different from each other, we do not pay people with gold coins anymore, haven't done that in decades, probably centuries.

So, we should at least pick what we want to be and move from that route. I wouldn't mind neither because both of them would at least improve us a bit but undecided hurts us.

tvplus006

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Quote from: Xampeuu on March 14, 2020, 12:11:58 PM

by exchanging banknotes, then a virus that can last for 10 hours on inanimate objects can be transmitted quickly, making it difficult to deal with it, therefore wHO supports digital transactions to avoid direct contact with someone, like cryptocurrency, at least reduce the spread of the virus widely

I think that the danger of Fiat for the spread of coronavirus is exaggerated. Now more turnover is accounted for non-cash payments using a credit card. As for the calculation of cryptocurrency , it may not be so quickly accepted by the governments. Now the first task is to defeat the coronavirus.

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Quote from: thesmallgod on March 16, 2020, 12:18:27 AM

Quote from: Wintersoldier on March 13, 2020, 11:14:41 AM

This corona virus is starting to collapse the economy of a country that has been affected of this virus because a lot of productivity has been stop and there are a lot of people are stating to hoarding since there are lock downs in their places. Fiat currency is a physical object , so it is possible that the virus could be pass on to another person, that is why there are countries who avoids accepting physical money for their own sake because you can't really say if that money has been touch or not by an infected person.

And this makes e-currencies the best option because no direct contact like fiat and it is also fast. I heard some banks in Czech republic are encouraging bank transfer and online payment directly for purchases of goods and services in order to reduce the chance of contracting the disease which I believe it is very good. I think the op is generally talking about the effect of increasing budget deficit on fiat compare to fiat but also the pandemic has effect of crypto

also venezuela too . people are also encourage to not depend on fiat not because of the virus because that was happening a long time ago .

this is good because even thier governments doesnt want them to use physical fiat . it was like they want thier people to use more digital currencies but didnt mean its already a crypto because there are also many digital currencies and most of them were older enough than a crypto but cryptos do also have thier advantage which make them a choice for people who wanted to use digital curencies .

thesmallgod

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Quote from: Wintersoldier on March 13, 2020, 11:14:41 AM

This corona virus is starting to collapse the economy of a country that has been affected of this virus because a lot of productivity has been stop and there are a lot of people are stating to hoarding since there are lock downs in their places. Fiat currency is a physical object , so it is possible that the virus could be pass on to another person, that is why there are countries who avoids accepting physical money for their own sake because you can't really say if that money has been touch or not by an infected person.

And this makes e-currencies the best option because no direct contact like fiat and it is also fast. I heard some banks in Czech republic are encouraging bank transfer and online payment directly for purchases of goods and services in order to reduce the chance of contracting the disease which I believe it is very good. I think the op is generally talking about the effect of increasing budget deficit on fiat compare to fiat but also the pandemic has effect of crypto

Farma

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that's what should have happened, so I was very confused when I saw the price of bitcoin drop so dramatically. I concluded that people take back their assets, and exchange them for fiat so that the deficit will fiat increase. this, causes damage to the investment and economic sectors of a country. in fact, the crisis also occurred in my country.
actually I think that it is very good when people turn to crypto for the current situation, but it seems this decline makes others think otherwise. I do not think that this has a great influence on crypto.

KrisAlex18

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Quote from: countryfree on March 13, 2020, 06:52:26 AM

Have you seen how governments responded to the corona virus?

Quite simply, in Italy, the US and elsewhere, they will increase their budget deficit, and add debt. In my understanding, that's very bad for fiat currencies, while BTC will remain unaffected, thanks to the lockdown on money supply.

Actually bitcoin is also affected by the COVID-19 that is why our market keeps on going down, but in our current situation, cryptocurrency is the best thing that we might use compared to fiat currency to avoid interacting with many people. In this kind of situation bitcoin is really valuable but the thing is, if we are facing problem on our country the market is also facing the problem because of so many people affected by the virus, maybe those traders, players, investors and big whales are also affected which results of going down of the bitcoin.

Let us help each and everyone by staying at home and not going outside just to purchase and transact someting, you may do it through online, there are so many websites that accept cryptocurrency.

countryfree

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This is what I had in mind:

Federal Reserve cuts rates to zero and launches massive $700 billion quantitative easing program
https://www.cnbc.com/2020/03/15/federal-reserve-cuts-rates-to-zero-and-launches-massive-700-billion-quantitative-easing-program.html

People are queuing to buy toilet paper, but the dollar bill is the next toilet paper.

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Quote from: julius caesar on March 15, 2020, 05:34:34 AM

Quote from: countryfree on March 13, 2020, 06:52:26 AM

Have you seen how governments responded to the corona virus?

Quite simply, in Italy, the US and elsewhere, they will increase their budget deficit, and add debt. In my understanding, that's very bad for fiat currencies, while BTC will remain unaffected, thanks to the lockdown on money supply.

Actually there are some news that the said virus can be transmitted thru the usage of paper money? I am not quite sure actually. I think that is possible so I would like to suggest the usage of crptocurrency or digital money to be able to transact online. It is better to avoid the person to person transaction and avoid being infected by the virus.

but if we look at the characteristics of corona viruses, they can last about 10 hours in inanimate objects, and money is a place to move viruses effectively. when people make transactions with banknotes, then they hold on to each other, and it is possible for the virus to spread widely. this is different from bitcoin which is done digitally

Sanugarid

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The economy of every countries affected would surely fall down as the outbreak continues. It led to lockdowns which made most of the employees avoid going to work or sometimes, companies makes it mandatory not to make their workers go out for their job so that much more spreading of the virus can be avoided. It was also studied that the virus can stay on paper money or coins making its range of dessimination bigger. That's how we can consider it unhealthy for the fiat money but at the same time, it harms crypto also cause the pandemic outbreak makes people anxious of their surrounding and not their investment anymore, even transactions become less often because of it.

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