The FINANCIAL — The coronavirus pandemic which began in December 2019 in China has since spread to other countries across the planet . it’s the trending news headline within the year 2020 with over 3 million confirmed cases, over 1 million recovered cases, and over 200,000 deaths.
All sectors and markets have somewhat been suffering from this pandemic, and therefore the crypto market isn’t exempted. Sometime in mid-March 2020, the amount 1 cryptocurrency – the Bitcoin – dropped in price to sell at $4,000. This drop was huge and sent panic across the cryptocurrency market because the coin was valued at about $10,000 the previous month.
Most of the cryptocurrency traders feared that the worth will drop further the approaching month but fortunately, it gained value and currently sells above $8,000. These events have changed the attitude of individuals towards cryptocurrencies. Unlike earlier, crypto traders are certain about the longer term of the crypto market.
How Coronavirus Affects Cryptocurrencies
When the coronavirus outbreak began, many experts assumed that cryptocurrencies would be the go-to asset at such a time. So, it had been considerably surprising when the bitcoin crashed and lost about 15% of its value. If not for the assumptions, this shouldn’t are so surprising.
The value of the Bitcoin and other cryptocurrencies results from its demand because it is decentralized. Unlike FIAT currencies whose values result from the GDP of a rustic and interest rates. If people don’t request to shop for bitcoin, its value will drop.
With the coronavirus pandemic, tons of individuals resulted in using acceptable public means of exchange which are the FIAT currencies. There was a requirement to get items to refill for lockdown periods. The Bitcoin or the other cryptocurrencies are yet to be accepted as public means of payment; hence its demand reduced.
In such a scenario, the sole method to take care of the worth of the Bitcoin is thru mining. Mining introduces new coins to the blockchain. Furthermore, China which is that the region where the virus originated from is one among the main countries where cryptocurrencies are often mined. About 65% of the Bitcoin mining power is from China. On the opposite hand, South Korea , which recently made crypto trading legal, is additionally a big mining contributor and therefore the country is handling over 10,000 cases of coronavirus.
The Current Attitude of individuals Towards Cryptocurrencies
A bitFlyer report revealed that the amount of crypto believers across Europe has increased by about 3% since the beginning of 2020. Ideally, bitFlyer carries out Crypto-Confidence Index research per annum . It involves 10,000 participants, and it’s administered in over 10 European countries.
The countries involved include Poland, Spain, Belgium, Denmark, Italy, Netherlands, the uk , France, Germany, Norway, and France. The return this year was 66% as against 63% in 2019. People are certain that within the next decade, cryptocurrencies are going to be more widely accepted than now.
From the info collected, the foremost significant percentage came from Italy, which is extremely surprising considering how heavy the pandemic hit the country. About 72% of participants in Italy were confident of bitcoin having a secured future. With this, Italy stands because the most crypto-believing country.
On the converse side, the uk emerged because the least-crypto believing region. Only 56% of participants from the country were confident of bitcoin having a secured future. This percentage is additionally less than what was obtainable within the previous year’s research which was 57%. However, because this alteration isn’t particularly drastic, most UK cryptocurrency brokers haven’t even experienced any drops within the trading activity of Bitcoin and altcoins that their clients trade on their trading platforms.
The UK wasn’t the sole one to possess dropped certainty levels within the way forward for cryptocurrencies. Reports also showed that Norway dropped to 67% from 74% in 2019. Both Netherlands and Poland had a 70% certainty level of a secured way forward for cryptocurrencies.
Similarly, Paxful – a well-liked peer-to-peer crypto exchange – conducted a survey within the American region. This survey showed that an honest number of usa citizens presume cryptocurrencies to be a worthwhile alternative to FIAT currencies. About 69% of the survey participants believe that bitcoin are often wont to make real-life payments, while about 50% think it’ll help within the fight against corruption and inflation.
The significant ways people believe will increase the utilization of cryptocurrencies include institutional crypto investing, the resurgence of altcoins, use of blockchain technology by enterprises, and mobile mining.
The Future Of Cryptocurrencies
After the main crash in mid-March, the Bitcoin has been performing fairly well. the foremost popular cryptocurrency is above the stocks and dollar in terms of current-year gains. it’s also on the verge of catching up with gold with just a 2.1% difference.
The crypto industry awaits the third block reward halving of the Bitcoin. This halving will see inflation reduce to 1.8%. Also, the available supply of the new bitcoins are going to be halved for each 10 minutes. it’s assumed that this block halving will end in the increase of latest bitcoin millionaires.
In summary, whilst the longer term of cryptocurrencies remains not overly certain, an honest amount of individuals believe that there’s hope of increased usability within the coming years. this is often good for the industry because the world awaits the top of the coronavirus pandemic.