How Do Pandemics and Crises Affect the Future of Cryptocurrency Business?
With the beginning of the global quarantine, the economies of countries, and the lives of many people literally paused.
Most countries have already gone through that difficult period of restrictions and self-isolation, but tourism and other capacities of countries are still on a slow path of recovery.
People were forced to sit at home and spend their free time with the help of online entertainment. However, some of them were in search of additional income, and cryptocurrency or free Forex signals became one of the options.
It would seem that this is the moment of the global popularity of the cryptocurrency business, but it is worth looking at this situation from the other side. With the onset of the pandemic, it was clear that a crisis was not far off. This has forced many people to withdraw their money from cryptocurrency wallets and wait for a better moment.
It is logical that the cryptocurrency grows when someone buys it. Here is the result – on March 12, the price of bitcoin dropped sharply to $4,800.
We all gathered here to understand how the coronavirus affects the cryptocurrency, and for a start, we suggest looking at all the negative aspects.
As we have already clarified, Bitcoin grows when it is bought. During the lockdown, many businesses were closed – everyone was waiting for improvements and definitely did not want to risk their money by investing in Bitcoin, which, it would seem, under the influence of the crisis, reached a super low price. This instilled fear not only in large investors but also inexperienced day traders.
Along with this decline and fears came the popularity of online shopping and money transfers. If you have ever been interested in transferring money to someone using a Bitcoin wallet, then you should definitely know that such transfers take just a couple of minutes and do not take large commissions. And that is why many people turned their attention to cryptocurrency not as a means of income, but as a means of payment.
And here we begin to smoothly move to the positive aspects of the impact of the pandemic on the blockchain business.
When a person hears the word “cryptocurrency”, he thinks about charts, profits coins price fluctuations, transactions, and so on. However, it doesn’t end there – keep in mind that many cryptocurrency exchanges, Bitcoin trading bots, and wallets still need designers, copywriters, developers, marketers, and administrators.
The coronavirus has given impetus to the already popular remote work. Many of the above-mentioned specialists were in search of various projects that would keep them afloat during the quarantine. And since the popularity of cryptocurrency is constantly growing, although, with certain problems, there are more and more software development services for trading services or helping traders, which leads to an increase in demand for professionals.
What’s the bottom line?
How can you combine all these facts into one general conclusion?
In early 2020, some cryptocurrency experts predicted a bitcoin price of $100,000, and now we hope to see at least $20,000. However, nothing will happen quickly. Until the moment when business is restored and investors see positive trends, large investments in Bitcoin can not be expected.
At the same time, the coronavirus has given many people the opportunity to appreciate all the positive aspects of cryptocurrency – anonymity, online availability, and high volatility. Even despite the fact that many countries still do not recognize Bitcoin, it becomes clear that sooner or later we will begin to admit that it definitely has a chance to become one of the main payment methods for the population of most countries.
Based on the foregoing, we can conclude that the positive effect on the cryptocurrency market will not appear immediately. This will not happen in the coming days or months. Most likely, the bitcoin price will not be able to renew the historical maximum of $ 20,000 and pull altcoins along, attracting hundreds of billions of dollars to the industry, until the situation with the coronavirus stabilizes.
We hope you enjoyed this promoted piece as much as we did!