Coronavirus is Unleashing an ‘economic shock wave’ not felt since 1930

Coronavirus is Unleashing an 'economic shock wave' not felt since 1930
Coronavirus

Mark Yusko, a Hedge fund manager, is cautioning investors about the future economic disarray. The CEO and CIO of Morgan Creek Capital foresee a ravaged economy by coronavirus pandemic.

“The economic shock wave that’s coming will be nothing that any of us has ever experienced because it will be very similar to the 1930s,” he said “Trading Nation,” on Thursday. Especially since Dow and S&P 500 have tumbled by 28% and 26% respectively.

Cash is King during coronavirus pandemic.

Yusko, however, thinks it’s not yet late to overcome the losses. He says “cash is king”. Hence we are in for a bear market.

He estimates that we will overcome the impact on the global economy not in two weeks or months, but in a year. Yusko arrived at this decision when the global infection rate records exceeded one million.

Yusko who has a net worth of $1.7 billion told CNBC he is having a shortage of a lot of stocks. He particularly believes the price of stocks will decrease retail wise for consumers and leveraged companies. However, he sees an opportunity with his bitcoin holding.

“It is an insurance against the collapse of the financial system. But what I am saying is that the (stimulus) response from the government… will harm currencies globally, particularly western currencies. So, you want to have something that appreciates in value. Bitcoin will do that.”

Mark Yusko believes Bitcoin is next in Line to Throne. 

Using physical money is almost becoming negligible as many people are now transiting to digital money. Bitcoin is a transparent ledger which solves the double span problem with no central authority. It is pseudo-anonymous, and everything is open and trackable. Unlike banks that are non-transparent. It is impossible to sneak a peak in the bank’s ledger. It is because banks manage their ledgers of balances and transactions. Hence one can’t see the ledger. It’s only the bank that has control of it.

Bitcoin is decentralized. It contains the ledgers on many computers. Each of the computers taking part holds a copy of the ledger which is called the blockchain. Hence, if one wants to hack down the system, they will have to take down thousands of computers to unlock the system.

Like most money, bitcoin is also digital, with no physical coins. It has rows of transactions and balances. For instance, if one owns bitcoins, they can access a specific bitcoin at an address record in the ledger. And as such one can send funds from it to a different address.

Why is bitcoin such big news?

For the first time since digital money came into existence, we now have an alternative to fiat money. It is money that no government or bank can control. It is the internet of money, offering a decentralized solution to money matters. It enables one complete control of their money. In that, no government or bank can freeze ones’ account or confiscate their money.

Bitcoin is also cheaper to use unlike other money orders because it involves no middlemen. It is also programmable. Since they designed it to be digital money, one can turn it into smart money. It is also accessible to over two and a half billion people who can’t access banks. Such that today people can start trading with a click of a button on their phones using bitcoins. Especially with the existence of bitcoin credit cards.

Hence, with coronavirus pandemic, bitcoin will rise to the top. Especially since countries are going on lockdown and investors pulling out their investments.

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