Specialists at the BitMEX crypto-derivative exchange research unit have analyzed the impact of the coronavirus pandemic on financial markets.
Analysts say the market’s response to the virus will mark a significant change in the economic structure.
The study said that ultimately, with this new structure, there will be one winner: inflation.
BitMEX noted, that at present, there is practically no doubt that the financial crisis 2020 associated with coronavirus will enter history books.
The researchers are sure, despite all the efforts of governments to contain the crisis, this is not enough, and central banks have already reached the limit of their capabilities.
In their opinion, the policy of the US Fed could only contribute to financial crises, since during each of them the solution was to reduce interest rates.
So, the reaction to the dot-com bubble in 2000 was a decrease in the interest rate from 6.5% to 1%, and during the financial crisis of 2008, the answer was to reduce the rate from 5.25% to 0.25%, analysts emphasize.
The researchers say that no matter how we relate to monetary policy, now there can be no doubt that the current system cannot survive another crisis. According to representatives of the Austrian economic school, a deliberate easing of monetary policy delays the onset of the recession, but ultimately significantly exacerbates its consequences.
Stopping a business in a coronavirus is not the only problem that will have serious consequences in the future. Growing political populism, largely due to economic inequality, and climate change will also affect the economy, resulting in shocking inflation.
Nevertheless, the upcoming crisis may be an opportunity for cryptocurrencies.
Earlier, the death of the world economic order of the XX century was announced by Cardano founder Charles Hoskinson.