As the world is trying to cope with the spread of the coronavirus, several analysts have predicted that the economy is rapidly heading into a recession. Multiple countries took strict lockdown measures while the countries that were initially affected started relaxing their restrictions.
In a recent interview with Nellie Orlova, Bitcoin bull Tim Draper talked about how the current pandemic could churn out new solutions for a market desperate for innovation. The bailout bill for saving the world’s economy has come to $7 trillion with the numbers pointing to faster climbs.
During the discussion, the venture capital investor said he was not very confident about the government’s plan to pump more money into the financial ecosystem. Draper added that the banks were going to print all the money that had basically “tanked” it in the first place. His words painted the picture of a Venezuela-esque like scenery where money was thrown around because it had become worthless.
The investor then talked about how people expect investors to guess arbitrarily what’s going to happen to the market. In the war against the virus, the world had become unified, something Draper has pointed out.This pandemic was seen as a marker for new technologies and organizations. In his words:
“This is going to be a really interesting time where people say ‘well, why don’t I just use Bitcoin?’ I know there are only 21 million of them and we don’t have to worry about whether a government is diluting their currency by printing tons of it, we can instead just use a currency we all agree on and it’s all a part of the economy and it’s already frictionless and open and transparent and global.”
People would begin to understand that a method of payment that was without friction was much better than the current financial structure. Draper believed a lot of ‘impossible’ tasks were done by the group during times of crisis and this time it was no different. Organizations that incessantly refused to work from home earlier now worked smoothly with employees working remotely.
Although Draper was confident that we would emerge from this crisis, he did not fail to mention that the coronavirus also spelled the doom for some people. There have been many drawbacks, such as recessions and harmful effects across all industries. Jobs in the US are in jeopardy, with 6.6 million Americans filing unemployment claims last week. This was a massive spike from the week before when 3.4 million US citizens had done the same.
Draper admitted that at the moment the geographical boundaries were useless and that all nations were as one in this struggle. He envisioned a future in which people would be given more choice to move freely and live in a better and “nice” world. Using technologies such as bitcoin and smart contracts can be the way forward as the financial world undergoes transformation.