We’ve only seen a modicum of the looming economic crash triggered by the coronavirus, according to former Coinbase CTO
Former Coinbase CTO Balaji S. Srinivasan says that we’ve only seen a sneak peek of the coronavirus-induced economic fallout.
According to Srinivasan, the COVID-19 pandemic is far from reaching its peak despite the fact that infection cases are tapering off in Italy and some other hard-hit countries.
As reported by U.Today, Srinivasan drew parallels between the parabolic growth of the Bitcoin (BTC) price to COVID-19 cases as early as in February.
You haven’t seen anything yet
The analyst explains that the virus itself only represents the first act, which he metaphorically compares to a meteor that hits the ocean. The meteor has resulted in a series of tsunamis such as supply chain and demand crises.
In turn, the third act will be the crisis of institutions. The pandemic has also exposed the fragility of the European Union. The block that managed to weather the GFC is in serious danger of breaking apart after failing to deliver aid to Italy.
People could be forced to use crypto
Srinivasan also made a wild suggestion that people could be ultimately forced to use cryptocurrencies to survive the looming economic downturn. Their wealth will be controlled by decentralized networks.
He compares it to the massive work-from-home experiment that was caused by the pandemic.
However, due to the nascency of crypto, it might not ready for such a big challenge.
