Global climate is uncertain and this is all due to the pandemic chaos that has troubled our world to a great extent. Whether it is large or small, every business and industry the impact of COVID-19 is really disturbing. But in this space technology has made a remarkable discovery to combat this virus outbreak, and provide sustainability to our already crippling global economy.
No doubt, blockchain has made an indelible space for itself to grow ahead in the finance sector and paved a smoother way for different sectors to track the packages, authentication, or even storage of sensitive data. Here, we should not forget that cryptocurrency has drawn the inclination of the world towards the non-correlated investment options.
In this post, we have brought our focus towards the impact of the pandemic on the Crypto Industry. But much before let’s take a quick look at Cryptocurrency.
What are Cryptocurrencies?
Well, as the name suggests, it is a digital or virtual currency designed to work as a medium of exchange. Within this currency, cryptography is utilized to secure and verify transactions. This helps in controlling the creation of new units of a particular cryptocurrency.
The bigger question comes, that how this digital currency even came into existence, so let us rewind the past a bit.
In the 90s Flooz, Beenz and DigiCash attempted to invade the market but failed to do so, as fraud, financial challenges among many others were a part of that friction. This made the digital cash system a not-so-reliable aspect for the transactions. Further, in early 2009, an anonymous programmer named Satoshi Nakamoto brought Bitcoin. This was described as the ‘peer-to-peer electronic cash system,’ which was decentralized, sans any controlling authority to fiddle. And this is how Cryptocurrency found its platform and became a household name.
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Actions to be done with cryptocurrency
Buy goods- This is one of the most prominent features of Cryptocurrency, where it can be used in online and offline mode to buy goods, which can range from small local shops, bars to computer parts even.
Invest- Yes, cryptocurrency is a great platform to invest in. And among all Bitcoin is the most profitable digital currency to date.
Mine- Mining too is an investment, where miners offer a bookkeeping service for their respective communities and help them solve complicated transaction forms.
Accept as payment- Now businesses can look for potential customers by accepting cryptocurrency as a form of payment. You can inform your customers that you accept crypto coins, so you give them another option to keep a healthy transaction in place.
Is it legal to use cryptocurrencies?
A few years ago, cryptocurrency faced the brunt of not getting recognition from the legal authorities, but sooner its popularity has given it a mainstream recognition. Now global law enforcement agencies, tax authorities, and legal regulators worldwide have included it in their existing regulations and legal frameworks.
Most popular cryptocurrencies
- Bitcoin Cash
- Ethereum Classic
Impact on COVID-19 on Crypto industry
With a temporary shutdown to educational institutions, the travel industry to public events has triggered the world economy to take a slow pace and affect the business in return. But this is where Cryptocurrency comes forward in its best taste to help these industries to carry out the money transactions across the borders, without any hassle involved.
Impact of Covid-19 on Crypto-mining
You would be surprised to know that China and South Korea own more than 70% of the mining power of bitcoins. And the virus outbreak in China has led to a massive effect on the crypto mining market. The role of crypto- mining is dedicated to balancing new algorithms, however, due to isolation and quarantine, there has been a lesser movement in the mining farms. But despite all this, still, investors term cryptocurrencies as “safe assets,” as its value keeps on growing.
Value of bitcoin
As we all know that COVID-19 came up unannounced but with a bang, that left every possible business and industry left shocked. However, amid the economic crisis, the value of Bitcoin has witnessed a surge in the past few months. This specific event has been called as ‘Black Swan’, letting the financial market to act differently. But to save the investors and traders from the horrifying effect, Cryptocurrency is minimizing the risk.
Future of cryptocurrency
Despite all the disturbing news, emerging from across the world, it is still very clear that cryptocurrency is going to make HUGE and MASSIVE in the longer run. Further will provide a way for the investors to invest and survive ahead.
These dark times have also led to the possibility of global recession and capital authority, as low revenue has induced the problems. As for now, the Crypto market is facing different challenges and it is expected that in the long run there will be some harsh realities coming forward to impact this financial solution. But that doesn’t mean that cryptocurrency would drown in the sorrow of the pandemic, and eventually, it would grow and help in fighting back the pandemic.
Businesses in the current hard times are looking forward to getting a better hold onto their ROI, and let their mechanism to work efficiently. With the help of this trending financial solution, it would be easier for the businesses to seize the opportunity and let their business flourish in the longer run. Further, the integration of new automated app solutions integrated within this financial solution has also led to taking the useful information for crypto trading such as charts, prices, and analysis, at their fingertips.
Cryptocurrency is one of the best uses of Blockchain technology, but due to uncertainty in the financial world, it is hard for investors to make an investment. However, considering the benefits of the crypto market, where prices will have to be cut in half to reduce its supply in the crypto market, is inclining their interest to cryptocurrency.
As of now, the Cryptocurrency market is in the nascent stage and comes with its own risks and challenges, but for the long-term investment, it is indeed the best choice to proceed with, as the value of it will continue to grow.