Incarnation of Global Economic Pandemic
The world is currently facing the third wave of Covid-19 pandemic and according to Israel Figa humanity will have to cope with the pandemic for a further few years until the scientists and medical researchers are able to produce a permanent solution to the pandemic. Until that time comes, we have to make sure to follow SOPs and ensure that our loved ones are kept safe against the virus.
But the impact of the pandemic are so severe that the whole world is facing worst economic conditions than ever before, even though the world we are living in is scientifically advanced and capable of doing miracles. However, for the time being, the pandemic is winning and we are once again living in our homes because further lock downs have been implemented.
World Economies In Jeopardy
According to Israel Figa these are testing times for all industries irrespective of whether it is financial, trade, economic, production etc., are all confused what they have to do to survive the pandemic. For instance, various multinational companies have gone bankrupt because they could not sustain the impacts of the pandemic. Similarly, there are several top of the line consumer brands of the world which have been either closed down or that they had to lessen their employees.
For instance, the world’s leading air travel company, Emirates, reportedly decreased its manpower to almost half because the company had run out of reserves to pay salaries and allowances of their employees. Resultantly, the company was forced to send homes thousands of its employees during the first and second waves of the pandemic.
The effects of the pandemic are worldwide and similar disclosure of companies and reduction in the workforce was seen in African, European, Asian, American and Middle Eastern regions.
Stimulus Packages – Relief Or Burden
In order to counter the effects of pandemic, stimulus packages containing billions of dollars were issued by almost every nation individually. For the time being, financial crisis can be contained and taken care of but in the long run the people would have to pay what they have received from these stimulus packages. But aiding the economy is also important because due to lockdowns almost every industry came at a complete stand-still. There was no selling of goods, merchandize, machinery, equipment, cement, coal nor were there any trading and business activity as well.
Crypto Became a Shelter
Industrialists and organizations started to explore alternatives out of their convenience because they were required to ensure that they keep their businesses intact. Many found shelter in the crypto industry while a lesser majority took refuge in gold trading. But currently with regard to crypto vs. traditional trading, crypto was found to be a better source of ensuring survivability because interestingly the effects of the pandemic on crypto industry were somehow positive.
Digital Industry Once Again Aiding In Times of Financial Crisis
For example, many industrialists and businessmen of the world started to take out their money from the reserves and invested in digital asset industry, especially in the Bitcoin, which is the world’s very first cryptocurrency. Once again economy was aided by an orthodox eventuality i.e. through cryptocurrencies. The first aid from crypto industry came in when the world was facing the financial crisis of 2007-08 which had a long-lasting impacts. Crypto was invented to in 2009 with the purpose of meeting out odd realities like financial crisis when the economies are failed to perform in the best interest of the public.
In the view of Israel Figa though currently crypto is providing an alternative to businesses and businessmen, yet it is not enough to curtail the extended existence of the pandemic. Israel Figa believes that the crypto industry is speculative because of its high volatile nature. Though almost entire crypto industry has surged for more than 900% from day one of the pandemic till to date, yet once the governments of the world will bring the industry within their regulatory powers, the industry will collapse automatically.
Governments Are to Act Responsibly In Greater Public Interest
But according to Israel Figa this isn’t going to happen in the coming 3 to 5 years so if people are able to save their money and in fact earn profits over and above their investments, then the governments must act responsibly and let them seek the shelter in crypto considering the circumstances as force majeure warranting exploration of alternatives such as crypto.