Where is the money?
It’s the year 2020, and most of what we the world knew as a normal way of life is no longer the norm. In fact the world has witnessed so much change within such a short space of time. Anything you can think of from business to recreational, from education to entertainment, all have been affected either by one way or the other.
With the world filled with uncertainty especially with the current global pandemic, a lot of strong structured business models that were constructed on the traditional buyer and seller platforms, are having to adapt to a new way of business. Online.
Due to the outbreak of the novel Coronavirus also known as Covid-19, the world as whole has come to adapt to a preventative measure of dealing with the virus by social distancing as the virus itself is easily spread from person to person mainly through contact among other known ways of transmission.
As such a prominent example of this is many companies and some financial markets have had to shut down normal day to day operations with the resolution of having their employees work from home. This was and still is as a result of the Movement Control order imposed by governments of almost every country world wide. A move that is seen to have also resulted in the closing down of a lot of airports worldwide restricting both regional and international travel. Airlines such as Emirates Airlines, was among the first to announce they will be grounding their fleet to curb further spread of the Coronavirus.
As days and weeks passed, other airlines began following this noble move.
Unfortunately this however noble a gesture became a great inconvenience to a lot of stranded travellers that would have intended to return back home to be with family during this challenging period.
Cutting to the chase
“Every problem has in it the seeds of its own solution. If you don’t have any problems, you don’t get any seeds.” – Vincent Norman Peale
Yes so there has been a global inconvenience and a lot of restrictions known globally. It is important to remember that every problem requires a solution. Some problems already come with solutions, the trick therefore lies in finding that solution.
Although some solutions require more time than others, but the ones that can be solved immediately should be solved immediately.
My question therefore is for those of us who are investors, shareholders and traders where should one invest his or her money in this current global situation? Transport? Pharmaceuticals? or is it Farm produce? or perhaps real estate?
Initially i was of the idea that this would be the best time to inves
t in digital currencies such as bitcoin for mainly two reasons:
- With one of the said known methods of transmission of the virus being attributed to handling money (Fiat currency), or using ATM machines. Digital online transactions have become a solution on the basis of safety with no physical contact.
Cryptocurrencies have not been, well exactly best friends with the banking system and by nature their existence is inversely linked to that of the banking system.
- My second bit of logic is this: if everyone is seeking fiat currency now to facilitate purchases of basic necessities which unfortunately can be purchased via fiat money, the move devalues the value of cryptocurrency right now (and this has been the case so far with Bitcoin)
Now will Bitcoin re-gain value when and if the pandemic is under control? I think yes.
“-All asset classes have dropped. Everyone wants Liquidity. Cryptocurrencies will rise in the long run as alternative asset classes and once the technology becomes mass.” – Kyri Andreou
Now we know the current state of affairs will not remain the same, but it is alway advisable for one to always have a keen eye on factors that affect the economy, their investments and the future.
My take? Investment opportunities will spike up in Digital payment systems and trade, and confidence will drop in the case of normal bank notes. In Fact I’d recommend banks to introduce some form of digital token to remain relevant in the financial future ahead.