By Landon Manning
As the threat of COVID-19, better known as coronavirus, has been soliciting reactions from institutions of government, media and finance, the cryptocurrency community has offered a number of novel insights and practical approaches.
The Coinbase Approach to Quarantine
Tech-centric companies attached to a wide variety of industries and with operations that depend on China, where the outbreak of COVID-19 originated, have been particularly affected by the issue, and many large conglomerates have adopted a uniform policy on disease response strategies. Several major firms, such as Apple, Google and Amazon, have been instructing employees to work from home as a way to enforce the strict quarantine policy that health authorities recommend.
Meanwhile, leading cryptocurrency exchange Coinbase has formally codified a multistage disease response plan into company policy, basing its system on how employees and company offices as a whole will act when certain possibilities occur, such as a rise in coronavirus cases within the vicinity of Coinbase offices. In addition to this system of having employees avoid contact with the public, Coinbase’s plan includes a threat assessment system that works on a case-by-case basis.
The most prominent potential infection location for Coinbase employees is in Japan, which the company rates as a “Stage 1” area — more of an active threat than in places like the United States, but much less so than mainland China. Developing plans like this in a low-stress environment may prove critical for making sure that the cryptocurrency industry’s most foundational businesses can keep the flow of crypto assets open, despite the harshest pressures that coronavirus spread may present.
The Remote World of Cryptocurrency
Several blockchain and cryptocurrency startups within mainland China have been forced to take countermeasures to the life-altering disruption of the coronavirus, such as a complete overhaul of the work-from-home protocol and handling of in-person conferences, the latter of which often represents a critical source of contact and revenue for the cryptocurrency startup ecosystem inside China. The decentralized nature of the cryptocurrency and blockchain space has been a particular advantage for this sort of planning, as many tech workers are already accustomed to getting sophisticated projects off the ground without having to physically congregate at a corporate office building.
Many of the companies in the space have developed their own ways to combat the threat of coronavirus, and there is definitely evidence that the entrepreneurial spirit is going strong as well. Already, an international group of developers has been issuing a “CoronaCoin,” with its supply based on the number of reported deaths. With the asset already lambasted as a morbid joke, the creators have defended their actions, comparing it to the World Health Organization’s issue of pandemic bonds, which accrue value in a similar fashion. Although this particular venture seems like something of a flash in the pan, it does represent a good case study for the reality that the space’s developers are willing to take this affair in stride. If nothing else, it’ll take a lot more to deflate the enthusiasm we’ve seen.
The question of how to keep the various businesses within the cryptocurrency economy running well in the event of a coronavirus spread is particularly relevant for a number of reasons. As the traditional stock market has been sustaining heavy blows due to the coronavirus, the value of bitcoin and other cryptocurrencies has been relatively higher, though the market has dropped overall. Some financial analysts have speculated on the potential effects of this decline, claiming that a plunge in bitcoin’s valuation alongside a disruption in the businesses of the crypto community could have long-reaching implications for the future of the space.
Ultimately, the success of bitcoin as a currency for the future is not dependent on its price at any given time. Instead, bitcoin will be able to thrive as long as the people who make up the crypto space are able to treat it as a living thing, keeping the engines of economic deals alive while the community can hang on to its belief in a crypto future.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
