Businesses worldwide have been heavily damaged by COVID-19 and the measures suppress it. With this going on, a prediction by Gavin Andresen sounds really surprising.
Gavin Andresen is a man and a myth within the Bitcoin (BTC) community since developing Bitcoin products in 2010. Andresen was declared Bitcoin’s Lead Developer by Satoshi Nakamoto and founded the Bitcoin Foundation in 2012.
Unfair Advantage of Publicly Traded Companies
Small businesses have been heavily affected by the COVID-19 pandemic, causing the worst depression. Many of them will be surely wiped out by the markets. Mr. Andresen foresees big corporations with publicly traded stocks benefiting from this pandemic.
The level of market saturation will tank. As a result, the behemoths may lose some of their small-market competitors. With reduced competition, the stocks of corporations will rise as the aftermath of the ongoing recession may be ‘ultimately good’ for some of them.
Some commentators that follow his Twitter account highlighted this comparison is not correct because to a certain degree, small companies never had an advantage over publicly listed corporations.
All-Times Highs Amid Bloodbath?
It is interesting that stocks in high demand have already witnessed parabolic growths during the COVID-19 pandemic of Q1 2020. When the lockdown was imposed only on Wuhan, Tesla (TSLA) excited traders by numerous daily double-digit spikes. Recently, Amazon (AMZN) has barely touched its new all-time high (ATH) of $2,128, surging more than 30% since its mid-March sell-off.
However, some stocks are not performing well. Berkshire Hathaway (BRK.A) has lost $50B in Q1 2020 due to the carnage from the airline industry.
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