Cryptocurrencies can be traded from anywhere in the world. It helps to mitigate some of the potential liquidity issues that can occur if local governments impose trading restrictions as part of a lockdown. As a result, cryptocurrencies appear to be more appealing than other payment options in this time of crisis.
Furthermore, investors who are concerned that a pandemic may prompt central banks or political players to intervene in the market may prefer to move their funds to the decentralized crypto market.
The COVID-19 pandemic has hastened the popularity of digital currencies such as Bitcoin and the blockchain technology that underpins them. While Bitcoin volatility persists, the currency touched its lowest point in months this week. However, investors are optimistic that the momentum will continue even when the world returns to normal.
COVID-19 – Background
According to specialists and global health organizations, SARS-CoV-2 causes COVID-19, a condition that results in a respiratory tract infection. It can affect either the upper or lower respiratory system (windpipe and lungs). It spreads like other infections, primarily through direct contact between people. However, the severity of infection varies from moderate to fatal even resulting in death.
A virus’s ability to adapt or evolve as it infects people is common, and this virus has followed a similar trajectory. There are different variations named for the localities where they were first identified, but they have since spread to other areas and countries, with some proving to be more dangerous and lethal.
COVID Accelerates a Cashless Society
For a long time, we’ve been moving toward a cashless society. People began paying for things with credit cards a few decades ago, and digital currencies followed. These currencies have already made a lot of noise worldwide, even though they are still in their infancy. In addition, several additional considerations have prompted banks to contemplate making the switch to digital payments.
The 2009 Västberga theft, for example, prompted Sweden to explore going cashless. Cash usage in this Scandinavian country has decreased from 39% in 2010 to 13% in 2018. The government has now begun to establish its own digital money, the e-krona. Large-scale crises, such as the one in Sweden, have the potential to hasten substantial changes in our way of life.
The coronavirus is one of them, and it will hasten the global demise of cash. Although reports claim that money exchange does not transmit COVID-19, individuals are nevertheless hesitant to use it. Instead, they’ve already begun to shift their focus to digital currency. More and more people have started putting their resources into cryptocurrency. Click on this go URL to start putting your funds into these highly-anticipated digital currencies.
Cryptocurrency has Become a Store of Value
Gold has long been considered one of the safest investments available. As a result, investors used it to diversify their portfolios. Many of them began buying gold earlier this year when the coronavirus outbreak created a lot of uncertainty in the market.
However, adding gold to their portfolios was not as simple as it had been in the past. The borders were closed, and logistics became a significant problem. As a result, investors needed a new way to diversify their portfolios, so they turned to digital currencies.
Although some projected that cryptocurrencies would struggle in the event of a pandemic, this was not the case. Let’s take a look at Bitcoin, for example. When the pandemic reached its peak globally, many did not expect this digital money to remain above $10,000. Bitcoin first declined, and it did fall below $10,000.
However, as more individuals gravitated to digital currencies in times of crisis, Bitcoin quickly rose to $10,500. If things continue to move in the same direction, Bitcoin and other digital currencies may be able to reach even greater levels. It is why crypto is being referred to as the “new gold” by experts, and more people are beginning to invest in it.
The Exponential Growth of Blockchain Technology
You’ve probably heard a lot about blockchain over the last few years if you’ve been paying attention. This technology is evolving in various ways, and it is assisting us in addressing critical challenges like transparency, robustness, and immutability. Trading with digital currency as we know it would be impossible without it.
The coronavirus outbreak has piqued people’s interest in blockchain, and it’s an exciting time for the technology. The global response to the coronavirus will pique investor interest in this technology even more. Don’t be surprised if more industries and sectors adopt blockchain technology in the future.
Furthermore, blockchain can one day aid in the prevention of pandemics. As more people become aware of the relevance of blockchain, some say that combating the coronavirus would have been easier if doctors and hospitals had employed the technology. In the future, hospitals and health organizations are likely to use this technology to transmit data in real-time.
Cryptocurrency Market will do well in the Future
The COVID-19 outbreak has severely impacted the global economy. Many businesses were closed down, and several people lost their jobs as the virus spread over 188 countries. The virus primarily harmed small enterprises, but it also had an influence on the operations of giant corporations.
Changes like these have thrown the market into a tailspin, and investors are paying close attention to what’s going on. Markets appear to be on the verge of a more prominent sell-off, and being prepared has never been more critical.
Even though several businesses appear to be losing value, the bitcoin market is performing nicely. Bitcoin, Ethereum, Dogecoin, and other digital currencies are becoming increasingly popular. Not only that but for the first time, banks and governments are beginning to buy cryptocurrency.
Cryptocurrencies have proven to be the rarest of things: a success story born of the pandemic, buoyed by investors looking for a safe haven in tumultuous times, embraced by entrepreneurs and celebrities, and made more accessible than ever before by their adoption across payment networks.