How Coronavirus (Covid-19) Might Affect Economy Worldwide
A friend, a doctor in a hospital told me, he advised his team to take the facemasks, gloves etc. home every day since the stocked goods are already getting stolen.
Meanwhile, we sincerely hear to this every day, Corona Virus (Covid-19) is spreading worldwide.
Due to being a global blockchain team, with members spread over the globe, we hear how many report the same situation. People are starting to become frightened and to do panic shopping. Many shelves, meanwhile, turn empty as goods are sold. Face masks and desinfection liquid is sold out or its sold for exorbitant prices. Some merchants use the fear of buyers to sell for high prices. As I am no judge, I don’t address moral aspects, though.
Being in the public at a car dealership, on every desk you can see disinfection liquid. Even in the supermarket at the cashier, there it is. So it’s getting literally everywhere. I was told by the cashier that people are buying 10 times the goods they usually buy; some come back on daily basis due to some goods being already sold out.
Another friend, a doctor in a hospital told me he advised his team to take the facemasks, gloves etc. at home every day, since the stocked goods are already getting stolen. Even schools are getting closed! Naturally, the kids enjoy it, since most of them don’t understand the reason.
So this is the status quo right now. Probably more sudden stuff will occur in the near future……
Coronavirus (Covid-19) & Blockchain
Coming back to blockchain, in many cases it can be utilized in a good or in a bad way .
One, out of 4000+ projects in the blockchain industry, even tries to monetize the fear with a project called “Coronacoin”, speculating on the possible deaths due to covid-19, a disgusting project and a shame for the whole crypto industry. Being in communication with leaders of the industry, everybody has almost the same opinion, it’s the wrong approach for using our great technology for something like this.
Especially looking into the tech, it’s a simple ERC20 token anybody can generate easily in 20 minutes. No usability, no serious business, and potentially a runaway by the team who are in for the quick buck! Not at all representative for all the good players in this growing market.
Crypto massadoption vs. CASH — virus proof
Vice versa since cash goes through many hands, and with this being the perfect transportation “vehicle” for the virus, legitimate cryptocurrencies are demonstrating to be a greater and more secure way of payment. Due to decentralization its even virus proof.
Panic is the wrong attitude, preparation and prevention is the right. The simplest hygenic standards, like washing the hands for 20 seconds right after arriving home or being in the restroom, already can help a lot. But, as I am no doctor, my recomendation will be “please, google the simplest things you can do by yourself”. Or look at this tweet for songs you can sing which last only 20 seconds each, while you do so: https://twitter.com/jenmonnier/status/1234532567610605568?s=21 .
I rather, then, have a look in the old economy, manufacturer, travelling industry and others later. But, for now, the manufacturing industry.
The actions of China vs Coronavirus (covid-19) outbrake
With its origin in Wuhan, China, the chinese government did the right choice. They closed factories, desinfected airplanes, and is trying to knock down the outbreak in many ways while protecting their citizens. Workers stayed at home after the chineese new year. And even now they do control a lot, measure peoples temperature when they leave the house or come back in.
The chineese people are strong and hold their heads up even in times like this. We all know the Wuhan Hospital what was built within 10 days, what should be in the guiness book of records. Especially if you look at, for example, the Berlin Airport. They’ve been building it for 10 years, yes, 10 years!
What most people DON’T know is that most workers in Wuhan Hospital construction worked for free. This is chineese spirit: The sacrifice of the individual for the health of the whole.
The challenge of the manufacturing industry due Coronavirus (covid-19)
But there is another big aspect to look into. China, meanwhile, is called the “workshop of the whole world”. Nowadays many products are “Made in PRC”, the Peoples Republic of China. Many you can see! But there are many you cannot see. Machines or vehicles using PCB´s all have chipsets. Guess where most of them are coming from?
So in a nation like for example, Germany, where the economy is already affected by the car crisis due to climate and other factors, now, the next industry is affected. Companies who struggled already on the cost side now also will start struggling in short term also on the sales side. If you don’t have the chipsets you need to build, or even simpler mechanical parts, you can’t finish your products: no sales and no income! Am I making my point?
In the short term panic prevails, people stock up privately and try to protect themselfes from the virus. In the long term, it affects the industries and economies worldwide. At least those who need parts built in China. And many out there need them!
USA reacts!
Today, even the United States of America have reacted on what is coming, by reducing interest rates by 0.5% — the highest in its history since 2008.
Aside of production, most tradeshows and events are being canceled! This happens worldwide! Even the mobile world congress in Barcelona, the F8 conference by Facebook and many others are canceled to prevent the people. Where do people usually get in contact with their new customers and/or sell their new goods?
Tradeshows, at least is a part of the sales cycle. But, to end the first article (of several coming), with a bit of humor, at least soccer games in Germany, for example, still finds its place. There are only 50.000 people next next to each other in a closed arena. Rock on! The people must stay entertained!
