Is Cryptocurrency Safe During And After COVID-19 Pandemic?

Is Cryptocurrency Safe During And After COVID-19 Pandemic?

The novel coronavirus (nCOVID -19) changed from just one of the regular virus outbreaks into a global pandemic in less than three months, causing severe and drastic changes in the world. Many have already referred to the latest pandemic as the not-so-anticipated “World War III,” as it continues to spread across the globe. Anyway, some specific actions were put into execution. These actions were to restrain the aggravating situation and ensure that in virtually every sector, the world does not come to an unfortunate halt.

COVID-19 Impact on World Economies

The travel industry, educational institutions to public events, and many other sectors have either been in limbo or postponed. This sudden U-turn has a significant effect on digital currencies and businesses at large. Countless cases have resulted in death globally, and with little thought of this pandemic not stopping very soon, stock markets have started to take on many hits.

A report on GX Blocks mining products platform noted that since 2008 when the world plunged into a financial crisis, the S&P 500 index hit a new low this year. The crypto-market has become even more volatile, experiencing one of the worst sudden declines in its history. There was a 6 per cent price loss by the end of March 2020, which occurred within 24 hours.

Being one of the coronavirus’ most affected nations, and also one of the world’s largest crypto markets, the US has had a new low in its treasury experience. Investors have shifted dramatically from “risky” assets to far “safer” assets such as gold and oil, with which there has been a spike since the pandemic outbreak.

COVID-19 Impact on Crypto-Mining

China and South Korea own more than 70 per cent of the bitcoins’ mining power (the most substantial cryptocurrency), it’s easy to say that the massive effect was expected as soon as the virus started becoming significant on the Asian continent, much less the world.

Over the past few years, numerous cryptocurrency mining equipment has been designed, and these pieces of equipment are exposed to certain inefficiencies, with prices currently suffering. Mining farms became more and more critical to balancing the new algorithms than these pieces of equipment, which were rendered inefficient.

Isolation and quarantine became the leading causes of this because, in mining farms, there is less movement, despite the notion that investors call cryptocurrencies “safe assets,” especially in times like this. Prices keep on suffering at the expense of initial expectations.

The Positives

Despite all the negatives that emerge from all corporate sectors of the world since the emergence of the coronavirus outbreak, it is still safe to say that many markets can survive and even benefit from these difficult times.

There is no doubt that in the shadows of these dark times, the possibility of global recession and capital authoritarianism lurks as world governments are prepared to induce capitalism as a way to solve these problems.

Initially, these impending changes might not affect the crypto-currency market, but that does not mean it is not safe from it, especially in the foreseeable future. The reason is that the world is very prepared to use all available measures to combat the pandemic with the use of communication and medical technology to suppress the speed at which it spreads.

Return on investment is one of the significant business keys, and, according to financial experts, the imposed lockdown in many countries around the world is an opportunity to utilize prices in trade. Auto-software features have also been updated to track useful crypto-trading information, such as charts, fees, and analysis.

Bottom Line

The fear of halving bitcoin continues to linger in investors’ minds where prices will have to be cut in half to reduce their supply on the crypto market. Many investors and experts have found this halving policy as an interesting analysis in terms of balancing the books.

While many futurists described the crypto-currency market as “beyond safe,” they also stressed that it could also be recognized as a good option in long-term investments as the value continues to grow.

These analyzes are also predicted to materialize in the months to come and will undoubtedly affect future prices in the future. The future remains the only place we can find the right answers. As the coronavirus (COVID-19) pandemic continues to record more cases — coming into the future will be the only way to tell us how eventually all things will turn out.

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