The world’s 500 richest people lost a combined total of $ 139 billion last Monday when markets gave way amid fears that the coronavirus will affect the global economy.
This vanished amount represents 86% of the Bitcoin capital market.
After the tense geopolitical circumstances and the recent impacts on the actions of current tariffs and regulatory measures, “the health” of the world economy has already become more than worrying.
This particularly for multinationals and global investors.
Analysts and economists have already warned investors that, in fact, this may be the beginning of what is to come. Some already label it as the “black swan.”
The environment of uncertainty hit the markets when the World Health Organization said that infectious disease has the potential to become a pandemic.
In this way, WHO urged the international community to do more to prepare for such a scenario.
Fear reached the markets, causing the S & P500 and Dow Jones Industrial Average to fall more than 3% on the day, the most in more than two years.
Meanwhile, outside the authorities struggled to contain the virus.
What happened to Bitcoin?
Although many conceive of Bitcoin as the ideal refuge for economic crises; This has not happened.
Because the crypto market has seen a correction; when the price of Bitcoin fell this week almost 8% reaching a daily minimum of $ 8,531.
According to CoinMarketCap, currently the market capitalization of Bitcoin is $ 161 billion.
So far, many encryption exchanges and Blockchain technology companies have felt the impact of the possible global coronavirus epidemic.
In China, employees of companies responsible for mining have been forced to stay in their homes to the extent that the quarantine restrictions apply.
Beyond the coronavirus, whatever the reason for the recent market downturn, this economic event serves as a reminder that traditional markets such as the S & P500 and the Dow Jones can be as fragile and volatile as investments in the cryptoverse.
Witness a drop equivalent to almost 90% of the Bitcoin capital market; It makes us reflect on how small Bitcoin is still; compared to global markets.
This means that the recent loss would be equivalent to each Bitcoin, going from $ 9,000 to only $ 1260 in a single day. That is volatility.
In addition to the losses of that magnitude arrive in hours and that economic life will continue as if it were a slight sneeze; It gives us an indication that in the face of a true crisis, the losses would be unimaginable.
Engineer, lover of the economy and technologies; Convinced that Blockchain will empower future generations, giving each individual freedom and sovereignty.