COVID-19 is one of the disturbingly largest outbreaks in the 21st century, which has impacted every industry in the world, including Digital currencies. Within the span of 4 to 6 months, the global economy has reached the par of recession, and the commodity market is especially facing the heat. On the other side, covid-19 has knocked the doors of crypto and blockchain with a different paradigm that reflects the expansion of technology and its involvement in digital currencies.
Covid19- Highs and Lows of Cryptocurrency Industry
Initially, Bitcoin’s value was in surge for a long time for various reasons. One of the significant factors affecting is the biggest involvement of China in handling cryptocurrency transactions. In April, bitcoin’s value was even seen at 6,314.79 USD, but the high disruption of workflow occurred since the first outbreak of the virus in Wuhan, China. During the period, the analysts suddenly state the event as “Black Swan,” which has not been experienced or predicted by anyone. However, the financial market lost balance and acted opposite. We notice investors and traders’ changing interest in selling off equities and opting for less risky options such as gold and securities.
Today, investors have witnessed a new asset that guarantees the safety and the same pitch value of gold. Digital currencies have taken a huge place in this global pandemic, turning into Gold 2.0. Due to rising uncertainties, investors were preparing for the usual portfolio diversification, which has also been affected due to lockdowns making it challenging to invest in gold.
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Cryptocurrency Industry will accelerate in Forthcoming times
The contradictions for the crypto world were going on since the beginning; according to some, it won’t do well in a pandemic, but it transpires to gainsay. For instance, the analysts were not expecting digital currencies to go above $10,000 during covid-19 hits the market to its peak. It was absolutely believable as the value dropped even below to $10,000. As the rise in the interest in digital currencies increased, the value of Bitcoin surged in no time; the inflation went up to $10,500 unexpectedly. Since that time, the value has not been down for a long time; now, if investors move in the same direction, there is a big chance for Bitcoin and other cryptocurrencies to go even higher than the current value (12188.30 USD).
In this pandemic, industries have tremendously lost value, but the cryptocurrency market is doing so well. Every day people are gaining interest in Bitcoin. Ethereum, Litcoin, and other top digital currencies that are ruling the market with the highest values. The significant change that has been noticed is the engagement of banks and developing countries in crypto for the very first time. Also, many countries have legalized the transactions in cryptocurrencies, which has been banned before this pandemic.
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Bitcoin will remain the top assets
Based on the current scenario, the digital currency market has seen a higher number of investors choosing crypto assets from countries like Japan, China, the EU, and even India. Recognizing the dynamic change, the veterans are commenting on the status of Bitcoin to stay for the longer duration (at least for 7-8 years) as the value has not to be decelerated in the past few months. There is an emergence of hope for cryptocurrencies like bitcoin to balance the financial market disruption in many countries where covid-19 ravaged the economies to the core. Due to this, factors such as stability, profitability, and predictability, make Bitcoin an ideal investment or portfolio diversification for investors, including beginners from all across the world.
Covid19- Effect on crypto and Blockchain Technology
Blockchain Technology has gained popularity for some valuable aspects such as providence of transparency, immutability, and resiliency. It has given a new dimension to the trading in digital currencies, which is quite impossible without these substantial alters.
Now due to Covid-19, the interest and utility of Blockchain Technology have taken an attractive shape into the world. Not only investors but common people also intrigued in the tech and responded in investing in this technology. According to analysts’ predictions, investors belonging to several industries and sectors will rely on blockchain. Even pandemic situations seem to be controlled gradually due to the increasing implementation of blockchain in everyday usage. The largest involvement has currently been observed from the health and medical sectors. Today hospitals and medical organizations are adopting blockchain to transfer information and for other prospects in real-time.
The potential use of blockchain technology in the Covid-19 crisis can be done in various ways which include;
- Cross Border Payments:
Through blockchain, there will be a significant reduction in the fee amount that is generally being paid to involved organizations, government institutions, and healthcare institutions. Basically, a huge amount of money is saved that is being deducted as bank transfer fees.
- Tracking medical supply chain:
As rising cases of duplicacy and ill-practices have been observed, taking the help of technology will benefit in tracking the record of supply of necessary products and medicines from its dispatch to delivery.
- Tracking of confidential data:
These days many healthcare institutes adopt blockchain technology to track the proximity of the spread of viruses ensuring tamper-free information to the public.
- Tracking essential donations:
In a crisis, it is essential to reach help to the people and organizations that are in the most need. Blockchain will help to track the donations to achieve the required destination.
- For recording Insurance claims:
Turning the process online, more consumers are interested in investing in insurance plans, and also it is for the public and institutes to handle the procedure without personal interactions.
Conclusion
As we know, the current status of Bitcoin and other competitive cryptocurrencies is growing faster due to the rising awareness of technology and internet adoption. Based on the present situation, the crisis is yet to accelerate as no positive outcome is recorded against Coronavirus, which hasten the public and investors’ transition towards the stable and transparent blockchain-powered financial structure. As a result, we can say Cryptocurrency and blockchain are definitely here to stay for a longer duration.