Deutsche Bank has warned that there is a possibility of the crisis much worse than the current coronavirus pandemic and it can destroy crypto currencies such as Bitcoin.
The German analysts foresee «kaput» to crypto. Increasing trend of Bitcoins in 2020 was developing intensively. Industry players including billionaire Paul Tudor Johns were seriously determined regarding Bitcoins. Johns compared Bitcoins with gold saying that digital currency is as important as gold used to be in 1970s.
The New report of Deutsche Bank led by analyst Henry Allen looked like a big risk for the markets. Allen and the bank research team stated that at least one of the fourth global risk scenarios would happen during the next decade. The scenario includes.
* Global pandemic flue that kills more than 2 million people;
* Volcanic activity with dangerous consequences;
* Destructive activity of the sun;
* Global war.
According to their calculations and forecast, the emergence of one of the mentioned disasters is about 56% based on researches and risk assessment. Deutsche Bank supposed that it most likely would be the sun than threat of war though it was rarely mentioned. The last activity of the sun was recorded in 1859.
The report says: “There will be temporary losses of power that in its turn will lead to negative consequences for all the economics because the data of the infrastructure will not be able to work properly”.
Global problems with electric power activity mean that online connection will not function and digital payment systems can be completely destroyed because the Global Positioning System (GPS) will not be able to carry out its functions.”
What does it mean for crypto currencies?
As Deutsche Bank suggests, the possibility of outbreak of solar flare can mean putting an end to Bitcoin like many things on earth. Any of the fourth mentioned scenarios can be more harmful for crypto industry than the current pandemic. But let’s see things plainly. Even taking into account the trade tension between the USA and China, pushing boundaries between India and China, Deutsche Bank thinks that the possibility of the solar flare is even more likely than the threat of military conflict of nuclear Powers. The questions then becomes, has their mind gone off the map? If that happened, it would lead to the fact that crypto miners would not control machines checking transactions.
Any of crypto would be nothing but dust, if the global energy system collapsed. But as long as satellites exist and there are alternative sources of energy (there are always generators), so will crypto do. So what about goddamn meteorite that also threatens our planet? It would be more relevant than the sun.