The coronavirus pandemic has impacted the financial market and has reshaped our economy. The pandemic has not only changed how people across the globe travel, shop, and work but also impacted the greatest share markets across the world. Although the full extent of COVID’s effects on the economy is still unknown, some are already becoming clear and that is ‘the growing faith in Bitcoin and other cryptocurrencies.
The recent market researches gave a very comprehensive analysis of the cryptocurrency analysis. The report showed that the trust in the Bitcoin has grown by 30% in the post-COVID economic scenario. Moreover, Oxford researches have also revealed that Bitcoin and other cryptocurrencies are becoming more important than ever in the face of the financial landscape. This is the reason why most of the companies are turning towards blockchain development to build bitcoin trading platforms.
An Attractive Investment Post-COVID-19
Many investors agree with the fact that Bitcoin is like digital gold, a commodity that you can invest in during the current COVID-19 pandemic. Its price is determined by the fact that is instilled in it.
In fact, after the almost 40% drop in its value, Bitcoin has rebounded significantly. At the moment, it has increased by approximately 70% from its lowest point this month.
Bitcoin At the Time of Global Recession
In 2020, economic surveys have shown that 47% of the investors have shown their trust in fiat money (BTC) over the banks. The faith in digital money has been increasing steadily and the COVID-19 crisis has only accelerated it. The positive sentiments against Bitcoin have increased over the years and many investors have started preferring storage value than real-estate, gold, and stocks.
The Coronavirus pandemic has given rise to a new digital status quo. In this uncertain time of the global recession, 2020 seems like a pivotal year for the cryptocurrencies. According to analysts, the pandemic has accelerated various technological advancements, and among them are the two most important innovations: Blockchain & Cryptocurrencies.
In countries like the USA, China, and South Korea, there is significant consolidation in blockchain space. Cryptocurrencies are being used as non-correlated investment options in these countries. If we analyze market conditions post-COVID-19, the stock market and cryptocurrencies were correlated for a week. This is driving more interest in the blockchain-based platforms.
Moreover, as the lockdown continues and people are spending more time at home, more and more people are playing online games, thus taking online gaming to a new level. This will lead to an online increase in online digital currency usage and also interest in blockchain-related technologies.
Another reason why investors are more interested in Bitcoin compared to other valuable assets is that they expect a higher interest even after the coronavirus crisis. Due to high risks in cash-based investments, financial experts started recommending people to invest in cryptocurrencies long ago. Robert Kiyosaki, author of Rich Dad Poor Dad said:
“The dollar is dead and people should invest more in cryptocurrencies.
The current COVID-19 pandemic and the economic and social disasters it has caused will eventually pass. However, it will likely bring impactful and lasting structural changes in our economic ecosystem. And several financial analysts are predicting that Cryptocurrencies (especially Bitcoin) will play a significant role in the post-COVID-19 economy system.
Undeniably, many business platforms across the world are embracing digital transformation and blockchain advanced solutions, but whatever there is in the foreseeable future still remains uncertain!