In the last century, humanity has never faced a foe as strong as that of the Coronaviruses. Therefore, since the Spanish flu of the second decade of the TWENTIETH century there was a disease with consequences as catastrophic as the Covid-19. And not just for the health of the people, but also for the global economy. That’s why, Jimmy Song says in the Tweet of the day that the crisis of the Coronavirus is a test for the altcoins.
The economic downturn is an interesting test for altcoins.
During good times, speculation/gambling is rampant.
During downturns, people fly to liquidity, which is BTC/USD.
Meaning much lower liquidity for alts or to sharp drop in
their price.
What do you think will happen?— Jimmy Song (송재준) (@jimmysong) May 25, 2020
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Despite the strength of the enjoyed by the american economy, during almost all the year 2019, the experts discussed the possibility that the north american country to enter into recession. However, no one imagined that the economic crisis could come in the form of a global pandemic such as the Coronavirus. And is that, since their arrival in the west in march of this year, the Coronavirus has forced the interruption of the business activities and manufacturing throughout the world. Causing what some experts do not hesitate to consider the start of a new global depression. A situation that affects all countries and markets, including the of cryptocurrencies. The crisis of the Coronavirus is a test for the altcoins like Ethereum, which have already seen its stock battered since march. Source: CoinDesk But, although rivers of ink have been dumped in to talk about how the Coronavirus affects the Bitcoin or the dollar. Little has been said about a group of assets that now, more than ever, are facing a test of fire because of the Covid-19. We refer to the altcoins, the cryptocurrencies alternatives to Bitcoin, which, according to Jimmi Song, are faced with the test of his life: “The economic recession is an interesting test for the altcoins. During the good times, speculation and gambling are rampant. During a crisis, people rush towards liquidity, that is BTC/USD. What that means liquidity is much lower for the alts or a sharp drop in its price. What do you think will happen?“ This Song explains how despite the fact that they are still uncertain of the effects of Coronavirus on the Bitcoin. In short, the liquidity of the market for this criptomoneda, puts you in a better situation to altcoins. Which still must face what could be a catastrophe.