Covid-19 Impact On Crypto Market
One of the biggest innovations of the 21st century, Cryptocurrency has already changed the way financial markets work. Investors have another choice of an asset now. Since the year 2009, the market has been slowly but steadily rising. For all those, who have an investor’s bent of mind, Bitcoin or Ethereum is not a lone term. You will be amazed to know that the current value of Bitcoin runs into lakhs of Indian rupees.
More About Cryptocurrency
Cryptocurrency is something that you cannot touch physically. It is an invisible asset. You can better understand the concept if we tell you that cryptocurrencies are digital currencies. Moreover, you can use it anywhere across the globe. That is a huge plus and relieves one from carrying cash. Another advantage that cryptocurrency has is that it is unregulated. You do not have to deal with any middleman. Cryptocurrency is similar to a file and is stored in a digital wallet. You can use it to buy or sell goods and services. One of the plus points remains that it is very difficult to track, so no one gets to know about the sender and receiver. The currency is in short supply, and that has led to a surge in its demand. You can also call it a speculative investment, as people buy and hoard it for its increasing value.
Cryptocurrencies are well-protected by a private key, which is similar to a UPI pin. If you forget the private key in this case, unlike real currencies, it is lost forever. Now, let us delve into the impact of the pandemic on the crypto market.
Impact of the Pandemic on the Crypto Market
The pandemic has led to the downfall of large empires and also created inflation. The crypto market has also got impacted. However, it has benefitted the economy in one singular way. It has led to the rise of cashless or touch-free transactions. Another positive aspect that is affecting the network is the blockchain technology on which cryptocurrencies run. This decentralized network has entered several industries like finance and healthcare. So, all those who were a bit sceptical about the crypto market are slowly waking up to its benefits.
You should know about some of the trends back in 2020 that sent shivers down the spine of investors. They are:
⦁ The value of the first-ever cryptocurrency Bitcoin fell to $7200, the $4,000 from $10,000. The other cryptocurrencies in the market, like Bitcoin Cash, Ethereum, and XRP, also fell.
⦁ Many people shifted from cash to physical tokens to avoid getting infected by the Coronavirus.
⦁ One cryptocurrency maker came up with the Corona Token, which was donated to Red Cross.
There are a few factors, that has led to the rise in the value of cryptocurrencies as well. Bypassing the initial shock, the cryptocurrency market has emerged as a clear winner, as Bitcoin quickly regained its lost position by riding to a value of $54,000. Many investors have also turned into billionaires, riding high on the cryptocurrency wave.
Positive Impacts of Covid-19 On Cryptocurrency Markets
⦁ If you are a cryptocurrency investor or thinking about investing in the same, you will be happy to hear this. Yes, cryptocurrencies are gaining value over other assets.
⦁ New Bitcoin Exchanges have opened in the past two years.
⦁ The value of Bitcoin had reached an all-time high, against the initial slump in 2020, when the outbreak began.
So, you can keep your fingers crossed, as people are opening up to the idea of cryptocurrencies and feel that they can be a safe haven. However, it is awaiting legalization in various countries. So, you have to wait and watch over future developments.