The pandemic of coronavirus caused some huge problems to the global economy since most countries adopted the measures of lockdown, and we have restricted traveling, and there are many other challenges for all businesses worldwide. The primary problem is with manufacturers, flight agencies, travel agencies, and small businesses that depend on imported goods.
Only those companies who have developed online platforms for their businesses and people who can work from home suffer much less in financial terms. Also, some companies have great rises on the market, especially online stores, and various trades. If you are interested in finding a way to work from your home and reach financial stability even in this kind of situation, you can visit CFDstrader, where you can reach great financial gain as an online trader.
While the coronavirus pandemic has a negative influence on the global economy, stock market, tourism, trade, and all other parts, it also affected the industry of blockchain and cryptocurrencies. In this article, we are going to discuss all downsides and possible advantages for Bitcoin and other cryptocurrencies in the current situation with COVID-19.
Online Conferences Only
Since the beginning of this outbreak, it was clear that all public events will be closed for some time which led the society that is interested in blockchain technology, Bitcoin and another crypto, to move their conferences on online platforms. While that represents a positive thing for many attendants since they still will be able to inform themselves about the latest news on this topic, companies and organizations, that chaired those conferences, are now under financial struggles. Also, there were several cases of people with coronavirus attending such conferences, which was one of the main reasons for canceling all events in the first place.
The Impact on Bitcoin
Many people who own a Bitcoin are worried about its oscillation in price. The world economy is under a great impact, but the mining of Bitcoin is still operating with no problems. People were afraid that it will continue to fall in value when it was close to 4,000 dollars recently. However, with the current price of over 7,000 dollars for 1 BTC, it looks like this cryptocurrency will be capable of maintaining its position.
Moreover, we can see that there are even bigger interests from people to buy Bitcoin and other cryptocurrencies. However, one of the reasons why there is a fall in price os that most people are rushing to sell, and there are fewer people interested in buying, which also can lead to the reduced value.
Furthermore, many experts say how this is the best moment for investing in Bitcoin, and they forecast that there will be a huge rise of people who will be interested in blockchain currencies after the pandemic ends. Also, you should follow the moves of big investors, since they are still waiting, but there are clear sights that they will invest a lot in Bitcoin when they sense the right moment.
Reduced Value for Many Cryptocurrencies
With the current situation with the global economy and pandemic, which can also lead to a fall in prices of cryptocurrencies, people are not sure in which one should they invest, or should they sell their virtual assets for a smaller prize. On the other side, experts are saying that it is natural for the crypto market to have a small fall in value since most people are only interested in selling. Also, many of them are expecting that in this moment’s blockchain technology can only prosper, especially if banks raise their interests.
Situation with Exchange Companies
The people who are working in companies that are trading with cryptocurrencies are not affected by this crisis since they can work from their homes. Also, there is a higher activity on these platforms recently, and there is even a research that says how people were searching for content related to blockchain, Bitcoin, or some other crypto much more during the lockdown.
What are the Possible Benefits for Crypto Market?
The global economy is already injured, and the outbreak is not clear yet since we don`t know how long will this last, but the fact that people are now more motivated to stay at their homes, find remote jobs, and order everything online, represents a great benefit for the market of blockchain currencies.
Moreover, more and more people are avoiding cash and use their credit cards or mobile payments instead of risking to get infected through the banknote. The traditional market is under serious challenges, and potential recession will only create perfect conditions for crypto to step up and become a default payment method.
What are the Effects on the Crypto Mining?
The process of mining has experienced the biggest impact from the coronavirus lockdown, and the main reason for that is a constant need for customizing and upgrading the hardware that is crucial for the process of mining the cryptocurrencies. Also, many workers were sent home, which led to a slower process. Also, in the worst case, you won`t be able to get a new graphics card or some other component, since manufacturers are closed.
Conclusion
According to analysts from all around the world, even if there is a current situation where most of the cryptocurrencies are falling in the prize, they expect a soon recovery and balance. Also, it seems like the panic on the market has an impact on the decrease of Bitcoin and others which was led by a huge fall in gas prices. The biggest advantage of blockchain technology in the current situation, but also in the future, is that they represent a digital asset that is slowly becoming a part of the global financial system.
Bitcoin is created during the last recession in 2008, which makes it interesting for many in the first place. And the fact that many people are comparing the current situation with that one, is giving Bitcoin even more credibility. If speculations came out as true, and banks raise their interests, we can only expect that Bitcoin and other cryptocurrencies will become the main method of payment worldwide.