China has started to quarantine used banknotes to prevent the transmission of coronavirus. While this may be a setback for fiat currencies, this proves the need for Bitcoin and other digital assets. While physical currencies can become the cause for disease transmission, virtual currencies are facing no problems in their operations.
Coronaviruses are a large group of viruses that cause respiratory and gastrointestinal disorders. The disease has previously surfaced in the form of SARS-Cov in China in 2002 and MERS-Cov in Saudi Arabia in 2012. Now the disease has surfaced in the form of novel coronavirus in China (2019n-Cov)
The disease continues to spread in China and has also spread to a few other countries. The provincial authority of Hubei province changed the diagnosis method for the disease and discovered 15,000 new cases and 242 deaths due to the disease. Dovey Wan, the founding partner of Primitive Crypto stated that the government is underreporting the numbers.
Many Bitcoin mining facilities in affected areas have been shut down, yet it did not have a significant effect on its hash rate. The network seems to be working perfectly as the hash rate continues to rise.
This proves the need for digital currencies that provide much greater liquidity and privacy than fiat currencies. Furthermore, digital assets can be used from anywhere in the world at any time. Since the currencies are ‘virtual’ there is no risk of disease transmission through their use.
Meanwhile, a Reddit post revealed the creation of a Coronavirus-based ERC-20 coin called CoronaCoin (NCOV). The main purpose of the token is to increase awareness about the disease. The team would also donate a portion of funds to the Red Cross.
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