Economy after COVID-19

[Abiky]

With the ever-increasing need for social distancing, people are recurring to online payments and e-commerce sites. The longer it takes to find a cure for the disease, the faster our world will change economically. During the pandemic, people will be using credit/debit cards more than physical cash itself. It's no wonder since physical cash is known to carry germs and bacteria with them.

Now, imagine an scenario where the cure for COVID-19 have been found while people are directly attached to the online world. The economy might never be the same as before, since people will start to value intangible items over tangible ones more thoroughly. A world where everything is digitized or "tokenized" seems to be the economy of the future. By then, each country will have its own CBDC living alongside traditional cryptocurrencies we know and love today. China might be the first country to launch a CBDC, followed by the US and several other countries. The launch of government-backed digital currencies wasn't a subject that heavily touched by world leader before the pandemic. Now that coronavirus encourages social distancing, things will accelerate quite a bit in the development of CBDCs for the whole world to use.

How do you think the economy will be after COVID-19's demise? Will it gradually recover? Or will it stay the same? Will central banks collapse to a point where only people transact with decentralized cryptocurrencies in the free world? Your input will be greatly appreciated.

[suchmoon]

Demise of cash doesn't automatically mean rise of new digital currencies. There is still going be digital fiat (credit cards, or whatever that CBDC thing is, etc) for a long time.

The economy in general will be fine but many businesses will not recover. A lot of people got a taste of doing things online who wouldn't have done it otherwise and some simply won't go back. There are entire industries that are in big trouble, like movie theaters.

[Wexnident]

The economy would probably recover, I mean, it has to no matter what. As for the adoption of intangible items or the rise of eCommerce sites and possible removal of physical cash, not everyone is on an equal playing stage to adopt it tbh. Especially on the lower end of the spectrum when it comes to financing, The usage of digital fiat is probably an alien-like existence to them. Not to mention that if and just if the world transitioned to digital fiat usage, would online security be able to cope? I mean, lets be real, there are probably much more talented hackers out there than talented specialists in banks and the like.

Physical cash would probably remain here and there and digital fiat would slowly replace it in the near-decade or so. I'm up for it tbh, a lot of hassle would most likely be removed because of that. Cryptocurrencies is a bit optional by then though, especially since people would probably opt for digital fiat instead of cryptos.

[mahilchii]

Demise of cash doesn't automatically mean rise of new digital currencies. There is still going be digital fiat (credit cards, or whatever that CBDC thing is, etc) for a long time.

The economy in general will be fine but many businesses will not recover. A lot of people got a taste of doing things online who wouldn't have done it otherwise and some simply won't go back. There are entire industries that are in big trouble, like movie theaters.

Exactly Fiat will still remain until people get well educated about crypto currency, now the key factor is when this pandemic will come to an end?? It clearly looks like it will take more and more time to recover. As far as I know manufacturing industries have been affected very badly than others because the people will work in large numbers and the owner cannot safe guard everyone in daily basis which is very challenging, instead they are preferring to lock the gates and wait till this pandemic recover. Well there are hundreds of manufacturing industries across the globe just imagine how badly the economy will affect, my point is it will take more time to recover like at least a year..

[Gyfts]

The U.S is banking on recovery considering the fed began printing money away to give as a relief but a few things concern me about the funds that are being given away. The U.S. is essentially giving small businesses loans that they are guaranteed to default on. A quarter of U.S. restaurants are expected to close down yet a vast majority of these small businesses are currently using funds from the CARES act to maintain payroll and keep their doors open. This applies to industries outside of restaurants as well.

The Paycheck Protection Program (PPP) is another issue. The government will forgive loans of businesses that apply and the PPP essentially gives small businesses free money to pay off workers on staff. Again, same issue. The government is artificially keeping businesses that are going to fail afloat essentially spending money that will never be returned. The U.S. is putting all their marbles in one basket in hoping for an extreme rebound of the economy because current spending is not sustainable. If the world's largest economy fails, fiat takes a hit.

[plvbob0070]

I don't think that the changes in the economy will apply to every country. These changes will probably and mostly apply to developed countries. Not every country and people are capable of doing digital transactions. Yes, it's now an option but I think most people would still rely on the traditional transaction using paper money.

What changes could be applied because of this pandemic is the safety barriers and precautions when two people are making a transaction to lessen physical contact. What I can see during this pandemic is that people are relying on e-commerce but people still use paper money to pay for what they bought.

After this COVID, I think people will be more conscious and careful about their environment and will be more hygienic. The economy won't collapse because that's what they are preventing, neither central banks. People don't easily adapt to sudden changes like every transaction would be digital. And when we say digital transactions, it's not only decentralized crypto. They more likely to accept digital payment using e-wallets or cards.

[Latviand]

I don't think that the changes in the economy will apply to every country. These changes will probably and mostly apply to developed countries. Not every country and people are capable of doing digital transactions. Yes, it's now an option but I think most people would still rely on the traditional transaction using paper money.

What changes could be applied because of this pandemic is the safety barriers and precautions when two people are making a transaction to lessen physical contact. What I can see during this pandemic is that people are relying on e-commerce but people still use paper money to pay for what they bought.

After this COVID, I think people will be more conscious and careful about their environment and will be more hygienic. The economy won't collapse because that's what they are preventing, neither central banks. People don't easily adapt to sudden changes like every transaction would be digital. And when we say digital transactions, it's not only decentralized crypto. They more likely to accept digital payment using e-wallets or cards.

People will still become anxious and worry about communicating with other people because there is still a risk of getting the virus from our surroundings. Probably people will not be the same again when everything go back to normal because somehow there's a long term effect in this pandemic so everything will not go back totally to normal.

But this will be the way for the promotion of using digital currency in many transactions to lessen the physical transaction and using of tangible money. There are some news and articles that are related to the risk of transmission of corona virus due to the use of physical money that can be passed from one person to another.

Hoping that our economy could recover from this downfall due to the effect of covid-19. We all know that most of the countries are having a hard time manipulating and controlling their economies because of the budget that are allocated to fight this pandemic.

[Eugenar]

As the pandemic virus is still there in our world, our economy gets suffered because of being lockdown and all of the business has temporarily closed to avoid going out of other people so we can lessen the infected of the virus.
I think if this pandemic virus would still continue our economy will suffer so hard to the point that when the crisis has gone it would really hard for us to recover because of the big effects of the virus.

So I am still hoping that there would be someone who will create a vaccine for this pandemic virus so we can now do our activities and stuff, the business will get recovered and the economy would too from being suffered.

[exstasie]

How do you think the economy will be after COVID-19's demise? Will it gradually recover? Or will it stay the same? Will central banks collapse to a point where only people transact with decentralized cryptocurrencies

We'll be able to tell a lot more in 6-8 months time: economic performance numbers for Q2-Q3 after reopening, there could be a second wave of COVID-19 and further lockdowns, there could be a vaccine within reach. These are all major variables for long term recovery.

I think BTC holders and gold bugs are getting ahead of themselves with all this talk of reserve currency collapses and hyperinflation, as usual.

[batang_bitcoin]

I still believe that the economy will recover slowly. Some countries managed to make their economies stable or at least maintain it on a level that they didn't really drop that much. The pandemic has opened the idea of cashless society and in China, it wasn't really a problem to them because they already have the cashless transaction through Jack Ma's Alipay and Wechat's help. There's no problem with big corporations and its top executives but the mostly affected are the rank and file positions because they might lose their jobs lessening the workforce and expense of a company that longs to recover.

[spy100]

With the ever-increasing need for social distancing, people are recurring to online payments and e-commerce sites. The longer it takes to find a cure for the disease, the faster our world will change economically. During the pandemic, people will be using credit/debit cards more than physical cash itself. It's no wonder since physical cash is known to carry germs and bacteria with them.

Now, imagine an scenario where the cure for COVID-19 have been found while people are directly attached to the online world. The economy might never be the same as before, since people will start to value intangible items over tangible ones more thoroughly. A world where everything is digitized or "tokenized" seems to be the economy of the future. By then, each country will have its own CBDC living alongside traditional cryptocurrencies we know and love today. China might be the first country to launch a CBDC, followed by the US and several other countries. The launch of government-backed digital currencies wasn't a subject that heavily touched by world leader before the pandemic. Now that coronavirus encourages social distancing, things will accelerate quite a bit in the development of CBDCs for the whole world to use.

How do you think the economy will be after COVID-19's demise? Will it gradually recover? Or will it stay the same? Will central banks collapse to a point where only people transact with decentralized cryptocurrencies in the free world? Your input will be greatly appreciated.

Now the economy is dead worldwide ...only thing that survived are health businesses , meat / butcher shops , vegetable, fruit businesses and banks ,the rest is dead ,basic necessities ...
After the covid pandamic alchol businesses and vices like smoking,prostitution,drugs will boom also,maybe movies and gaming also ... it's going to be like that for a very long time ... this is the "Great Depression"...

[Febo]

With the ever-increasing need for social distancing, people are recurring to online payments and e-commerce sites. The longer it takes to find a cure for the disease, the faster our world will change economically. During the pandemic, people will be using credit/debit cards more than physical cash itself. It's no wonder since physical cash is known to carry germs and bacteria with them.

It is sad that crypto economy is not ready yet for mainstream. It is sad that covid-19 did not happened 2 years from now. But on the other hand it is super good that it dd not happened 2 years ago. For sure what is happening now will accelerate development of crypto economy.

[Lucius]

During the pandemic, people will be using credit/debit cards more than physical cash itself. It's no wonder since physical cash is known to carry germs and bacteria with them.

People did it because they lacked real evidence that the virus could be transmitted that way, and some used it to make more money (banks of course). Card payments are more expensive in most cases, except in the case of a POS device belonging to your bank. In the past, this was an interesting way of paying for me, but at the end of the month I always had an extra expense due to the fees charged by banks for using POS devices.

Transmission of the virus via paper/banknotes is unlikely, and completely impossible if you wash/disinfect your hands regularly. Should we also stop to read newspapers and books?

Does coronavirus live on paper?
However, scientists and health experts have confirmed that newspapers are not transmitters of Covid-19, due to both the ink and the printing process that they go through.
Virologist George Lomonossoff, recently told BBC Radio Scotland: “Newspapers are pretty sterile because of the way they are printed and the process they’ve been through (to be produced).”

On March 16, the South African Reserve Bank stated there was no evidence to suggest Covid-19 is transmitted through the use of banknotes. Gary McLean, a professor of molecular immunology at London Metropolitan University, says: “The virus will not survive on cash for the length of time certain bacteria can, and will still require hand-to-face contact, minimising the transmission chances. There are no scientific studies demonstrating the coronavirus on cash, nor if it can be transmitted in that way.”

How do you think the economy will be after COVID-19's demise? Will it gradually recover? Or will it stay the same? Will central banks collapse to a point where only people transact with decentralized cryptocurrencies in the free world? Your input will be greatly appreciated.

Some countries will recover faster, some much more slowly - as was the case with the recession that began in 2008. It is certain that many things will not be the same as before and that people will be especially careful in social contacts. I think that the tourism/travel industry will suffer the most, which in 2019 accounted for about 10% of world GDP, and this year estimates say it will be about 70-90% less.


https://wttc.org/Research/Economic-Impact

[maydna]

The economy after Covid-19 will gradually recover. The government will try to re-open the business in their country and outside of their country. It will not be the same as before because the government will use a different standard to run the business in every sector. But I don't think the central banks will collapse because of many people transact with the cryptocurrencies as many countries still not accept crypto in their country.

We don't know when the Covid-19 will end, and the government still trying to recovering the infected people, while the government still trying to help the other people who survive. We should have optimistic about recovering the situations and conditions for our country to better than now.

[fiulpro]

See days before the online payment was an option . People can decide what they want to do or to not do , but now , it is both a Matter of safety , plus at the same time the shops are giving you discounts on the online paid orders .
The banks are closed and ATM's most of the times are out of the cash and during quarantine it is really hard to go outside. Therefore people who did not know anything about the Bitcoins are now engaging in the community , therefore for the future I do see the economy going cashless .
People who are able to get used to it will be able to earn during this time , unfortunately the society is changing weather we like it or not.

[suchmoon]

Transmission of the virus via paper/banknotes is unlikely, and completely impossible if you wash/disinfect your hands regularly. Should we also stop to read newspapers and books?

That's not quite the same. Handling cash where you can't wash your hands immediately after you touched notes/coins handed to you by someone else can be a risk, and it can add up if you do it a lot (e.g. you sell something in a market). Granted plastic cards aren't much better if people need to hand them over to the cashier and/or enter a pin.

[abhiseshakana]

The lockdown phenomenon to break the chain of spreading of corona indirectly creates new norms in our lives. Online transactions and the use of digital money are priorities and choices over hand to hand cash transactions. The longer the online transaction will be something common, not something new because it is accustomed.

After the corona outbreak is over, the problem is not the way of the transaction but the double economic shock in the supply and demand side as an economic circumstance in recession, depression, or great depression. Economic recession is a certainty due to budged easing and stimulus for pandemic mitigation. After Corona there were no significant developments in cryptocurrency because the subjects were still recovering.

Now what we have to think about is not a form of transaction lubricant but how to make transactions in the real sector. The government must create multi-layered productive labor-intensive projects to absorb as much unemployment as possible after Corona.

[FanEagle]

Probably going to take years to go back to what it used to be, however that is maybe a good thing if we could manage to change the whole system since it showed that it didn't worked. I mean we had this in 2008 as well and it didn't worked at all, look at 2020 and we see that we didn't learned anything from the 2008 crisis at all, maybe we will find a way to figure out what is wrong this time around.

I am not too happy about if we would be learning anything from this neither, but there is that potential and I am really excited about it. Look at the world right now, everyone moves a bit more progressive left right now in the young generation and that is very important actually. However, the 70's hippies all grew up to become a conservative actually so I can't really say if this new generation will grow up to be even more progressive or will they become conservative as well.

[The Sceptical Chymist]

The economy might never be the same as before, since people will start to value intangible items over tangible ones more thoroughly. A world where everything is digitized or "tokenized" seems to be the economy of the future.

Nah, I doubt it.  In my area, things are starting to get back to normal and restrictions are slowly being lifted, which is giving me hope that things are going to be returning to as close to normal as they're going to get.  And so far I've seen no evidence that the COVID-19 outbreak has been pushing people toward using crypto.  Online shopping yes, but we all know how few merchants accept bitcoin as payment.  All the stuff people have been buying from Amazon and everywhere else was bought with fiat, and that's not going to change anytime soon.

Stores in my area also continued to accept physical cash as well, which is what I normally use. 

It is sad that crypto economy is not ready yet for mainstream.

As long as the banking system hasn't failed (as it almost did in 2008), bitcoin isn't ever going to become a mainstream currency.

[mersal]

Since WHO announced this covid may turn out into endemic, many countries decided to relax their lockdown restrictions to increase the economic activities even though the number of cases is still not yet under their control.As a result of this many governments will encourage small business to accept fully digital payments but I doubt they will introduce own centralized version of tokens then the banking sectors will collapse then again it will do more harm to the government.