Analysts led by Henry Allen from Deutsche Bank state that the chances of one of the 4 major risks to occur over the next 10 years are 1 in 3. One of these risks directly concerns Bitcoin.
With its retail sales better than expected on Tuesday and efforts to develop a drug against coronavirus, the S&P 500 saw a 40 percent rise from its last closure and is now just 8 percent behind its peak in February.
It seems that disasters may not be too destructive for markets sometimes, but Deutsche Bank also has a frightening report on the subject.
According to Market Watch, analysts led by Henry Allen state that the chances of one of the four major risks to occur over the next 10 years are 1 in 3. These risks are; A massive flu pandemic is seen as killing more than 2 million people, a disaster-causing volcanic eruption, a large solar eruption, or a global war.
If the timeframe is increased to 20 years, the chances of one of these risks rising to 56 percent. Earthquakes, on the other hand, are not considered as major risks because they are considered as more local disasters.
The solar flare is not as controversial as other risks, but since the last one took place in 1859, the Deutsche Bank team sees it more than a global war and makes the following comments in its report:
“There may be major power cuts due to damage to the power grids. This causes critical infrastructure systems to fail and the economy to be hit hard. If hospitals and the health sector are damaged for this reason, many lives can be lost. Also, payment systems do not work, communication cannot be established, and all individuals and industries that rely on location services are also damaged because GPSs will not work. ”
“Major power cut seriously damages Bitcoin”
The famous Bitcoin advocate Andreas Antonopoulos said that, as we reported earlier, a possible major power outage would seriously damage Bitcoin. Antonopoulos, however, thinks that the banks and the tools of the current financial system will be affected much worse than this disaster and says: “Bitcoin comes first in returning vehicles after a giant power outage or after a natural disaster that could seriously damage the internet or electricity networks”