Real Vision CEO on the impact of coronavirus on the global economy

Real Vision CEO on the impact of coronavirus on the global economy - hero scaledIn an interesting conversation about the impact of Coronavirus on the global economy and the printing of money by the Federal Reserve, the Real Vision CEO, Raoul Pal, touched on a number of aspects including gold, bitcoin, tokenization and financial freedom.

According to Pal, the fight against coronavirus and the consequent impact on the global economy could prove to be a way for the affirmation of cryptocurrencies and blockchain technology.

Current scenario

The currently most reliable forecast is that the spread of the virus will be able to be contained by the end of the first quarter of 2020, restoring "normal economic activity" in the second quarter.

However, the global economic balance sheet would be "critical" if the infection rate and the increase in the death toll did not decrease, resulting in an interruption of the international supply chain that would amplify the shock.

In order to counter the fall in economic activity, countries around the world are pushing money into the system by offering lower interest rates and printing more money. We recently witnessed the historic decision by the US Federal Reserve to reduce the interest rate by 50 basis points (0,5%).

In addition to reducing rates, many states are also increasing the printing of money. Unfortunately, all these steps have the potential to reduce the value of the traditional fiat currency. In order to avoid such a situation, the system could possibly use the help of the two most important resources available in the current context.

One of these primary assets is gold, while cryptocurrencies could eventually take the form of the second asset, with the aim of avoiding a possible recession in the world economy.

Decentralization: a way forward

Citing the example of building a decentralized database, Pal stressed that decentralization is a way forward if economies are to become more efficient while providing equal opportunities for all participants to compete in the sector.

Pal said that digitization isn't just about Bitcoins and other cryptocurrencies, but various activities of various kinds are taking action to make their systems decentralized, more accessible and more effective.

In the discussion, the issue of exposure to cryptocurrencies also emerged and Pal stressed that it is important invest in cryptocurrencies based on the financial moment in which the investor is located. The risk aspect of cryptocurrencies should not be overlooked and consequently it would be advisable to invest in Bitcoin and altcoin with awareness.

Tokenization: enhance the next phase of crypto growth

The Real Vision CEO acknowledged that the tokenization concept has enormous potential to fuel the next growth spike in the crypto sector.

If the entire tokenization process is carefully studied placing a greater emphasis on examining the important aspects for a company, from its business model to the revenue stream, the tokenization phenomenon could actually lead to a greater financial success of the company. same.

And what do you think of all this? Leave a comment below!