What is a K-shaped recovery?
INTRODUCTION:
We must have heard of V shaped recovery , U shaped recovery and even L.
Just listening to the letter, we can easily guess what it means.
For example :-
V- refers to a sudden fall with a quick recovery
U- refers to any type of fall recovering over a long period of time.
L- refers to a fall with out any scope of recovery.
BUT, how is K recovery even possible ?
We were able to easily guess what each letter refers to with its shape , but K has two lines one going up and other one falling down .
But how can the graph or economy go up at the same time continue falling down.
AND THATS THE WHOLE POINT OF K RECOVERY
During a K recovery , one goes up and other falls down.
As you can see the above , it is a very nice example of K recovery .
You can clearly see that all after economic recession , most of the sectors
like IT, banking, retail, etc have recovered 100% on the same side you can see travel, dining, hospitality, film, etc have seen there worst days of all time .
Why are global investors concerned over it?
This is because the above example isnt the only K recovery formed ,
the world banks and many financial institutions have reported many K-recoveries.
For example :-
In 2020, the top 10 richest people have added over 500 billion $ in just 2020 but during the same period unemployment has reached its all time peaks, mainly the Southeast Asian, Africa even USA and UK .
This is actually a huge problem, this increases the wealth inequality and this has always been disasterous, history tells us.
Not just unemployment, Even the federal reserves of all the major economies have printed so much money that it became the highest through this decade.
To fund the new emergency policies .
Conclusion:
Ofcourse , the money printed by the government will finally land in the hands of the citizens, and we all know what happens when everyone gets money for free from the government. This cycle is repeating till today.
The world economic system is just broken, with all the powers over the currency centralised in the hands of the federal reserve and other sovergien entities.
And thats the reason why blockchain based cryptocurrencies which are
1)Fungible
2)Divisible
3)Transportable
4)Durable
5)Decentralised
6)Not counterfeitable
And all these properties of cryptocurrencies have led to their rise.
This is the main reason behind the rise for blockchain based cryptocurrencies to revolutionize the world finicial system by shifting from centralised to decentralised systems which could also help in building a global currency.