Omicron’s effect on the global and crypto markets?
The effects of COVID-19 on the global economy.
There is a belief that the markets respect neither persons nor circumstances. Although this might seem right, there are certain circumstances that can drastically alter the market. Globally, the Covid-19 pandemic has been a very bitter pill to swallow for most governments and nations.
In fact, the pandemic turned into an economic disaster as most businesses were shut down and some even went out of business.
The same Covid-19 has evolved into different forms, the most recent being the "Omicron variant." which is recognized as the scariest one ever to visit the human race. According to the World Health Organization, viruses are named according to their genetic structure to assist in the development of diagnostic tests, vaccines, and medicines.
Prior to the arrival of the Covid-19 virus, life and businesses were all carried out in a physical way and life was perceived as normal. Due to the looming prospect of further lockdowns, closed borders, and nervous consumers, investors reacted by selling shares in airlines and hotel chains, which were some of the sectors of global economies that were affected in a drastic way by the pandemic. Additionally, it is greatly affecting the price of oil, which has fallen by roughly $10 a barrel, the kind of drop often associated with a looming recession.
As a result, a wave of illnesses spreading from country to country is once again looming over the world economy, amplifying three existential threats that could cripple the economy once again. The three key economic dangers include healthcare, transportation, tourism, and leisure which were heavily affected in the first wave of the pandemic.
During earlier outbreaks, trillions in government assistance helped quickly resuscitate the struggling U.S. and European economies. It also brought some unexpected side effects. Due to the high demand, there was a shortage of labor and materials, which led to rising inflation, which could not be hidden since these were the real drivers of economic growth, not just printing money to boost incomes.
Both people and businesses have shifted to a wait-and-see mode. Business and services seem to be on hold, as the seemingly drastic variant that has been discovered by the health authority may affect the labor market or overall consumption decisions.
Crypto markets did not escape the impact of the pandemic as the markets tumbled down as a result of investors' uncertain perception of global trade. Bitcoin and all major altcoins saw their prices drop by at least 30% from their all-time highs.
Despite the fact that we live in a centralized world where decisions are made by the government, people, especially crypto enthusiasts, are calling for the emergence of a decentralized world system where the total governance system would be implemented using the web 3.
It would then be possible to live in a world with less physical interaction between people and therefore less transmission of diseases. This may sound bizarre if you think about how people would live in a digital world involving digital technology, digital finance, the digital economy, and so on.
There has been a rise in performance in the crypto market in the gaming sector and in NFT's market in recent weeks as more people are investing in the metaverse projects expecting them to increase in value over time. As part of our Klever ecosystem, we are also implementing our Klever NFT marketplace and gaming platform to engage our users.
Overall, Klever would stand in unity with our community and the entire world no matter how hard the Omicron virus affected our lives as we look toward a brighter future.
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