The COVID-19 pandemic has affected every currency in the world, including digital currencies. Furthermore, it has influenced blockchain, the technology behind digital currencies.
COVID-19's Impact on Blockchain and Cryptocurrency
Coronavirus will accelerate the decline of cash
We have been moving towards a cashless society for quite some time now. A few decades ago, people started paying for goods with credit cards and after some time, digital currencies arrived.
Although still in its infancy, these currencies have already made a lot of noise around the world. In addition, some other factors led banks to consider shifting towards digital payments.
For example,
the 2009 Västberga theft Sweden considered going cashless. Cash use in this Scandinavian country declined from 39 percent in 2010 to 13 percent in 2017. Now the country started developing its own digital currency called e-krona.
The colossal crisis,
one in Sweden, has the potential to trigger some major changes in the way we live. Coronavirus sure is one and it will accelerate the decline of cash around the world. Although reports say that the currency does not transmit COVID-19, people are still unwilling to use it. Instead, they already started turning to digital currencies.
Cryptocurrency will become the new gold
For ages, gold has been one of the safest investments one can make. So investors use it for portfolio diversification. With the coronavirus pandemic creating a lot of uncertainty in the market, many of them started buying gold earlier this year. However, adding gold to your portfolio was not as easy as before. Borders were closed and logistics became a huge issue. As a result, investors had to find a new portfolio diversification option and turned to digital currencies.
Although some predicted that the cryptocurrency would not do well in the pandemic,This proved not to be the case. For example, let's take a look at bitcoin. Many did not expect this digital currency to stay above $10,000 when the pandemic hit its peak. Initially, bitcoin went down and it actually dropped below $10,000.
However, with people turning to digital currencies in times of crisis, bitcoin went up to $10,500 in no time. If things continue to move in the same direction, we may see an increase in bitcoin as well as other digital currencies. This is why experts refer to crypto as new gold and more investors are starting to buy it.
The Cryptocurrency Industry Will Do Well
The COVID-19 pandemic has had a major impact on the economy around the world. With the virus spreading to 177 countries, many businesses were closed and many people lost their jobs. The virus mostly affected small businesses, but large corporations felt the impact as well. Apple temporarily closed all of its stores outside China, and Bloomingdale's did the same with all of its 56 locations.
Such changes have made the market crazier than ever and investors are keeping a close eye on what is happening. It seems that the markets are exposed to an even wider sell and being prepared has never been more important.
Fortunately, you can find all the important information on sites like AskTraders and avoid being left behind. While some industries seem to be losing value, the cryptocurrency market is doing well.
More and more people are showing interest in bitcoin, ethereum and other digital currencies. Not only this, but banks are also starting to buy crypto for the first time.
The use of blockchain will increase
If you've been paying attention for the past few years, you've had to hear a lot about blockchain. This technology is growing in many ways and it helps us to address some important issues like transparency, flexibility and immutability.
Without it, trading with digital currencies as we know it would not be possible.
The coronavirus pandemic has made even more people take a look at this technology and it is certainly an interesting time for blockchain. The global response to the coronavirus will spur even greater interest in investing in this technology. Don't be surprised to see more industries and sectors rely on blockchain in the future.
Not only this, but blockchain can also help us prevent epidemics in the future. More and more people are starting to realize the importance of this technology, and some argue that had doctors and hospitals used blockchain, fighting the coronavirus would have been easier. Expect hospitals and health organizations to use this technology in the future and transfer information in real time.
abstract
Cryptocurrency and blockchain are here to stay. It is important to understand the impact of COVID-19 on both as the pandemic continues. It is impossible to predict everything but at this point in time, the future looks bright for digital currencies and blockchain technology.
Hi , This is Pramod Choudhary from Nagaur Rajasthan India. I an student and I would like to share my positive thinking with everyone that's my passion . Thank you
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