The first case of COVID-19 was announced late last year in Wuhan, China. Since then, ten million-plus people worldwide stand affected, with over 500,000 deaths reported.
A global pandemic is sure to have some impact on the economy. Fortune Business Insights has released a detailed report that shows the current crypto market and the impact of COVID-19 on the market. The report has divided the crypto industry by component, by type, by end-use, and includes a regional forecast for 2020-2027.
A Negatively Impacted Crypto Economy
Uncertainty revolving around the markets after the rise of the virus has been palpable. There have been several fluctuations in the market, seeing cryptocurrencies’ prices and demand dip for a short period. The most impactful one was on 12th March, which saw BTC dip below $4000.
The ICO market has also seen better days with increased lack of funding, leading to considerably the sharpest decline after its advancements. A decrease in the number of token sales within the market is another factor that cannot be ignored. Companies specializing in the same, like many others, were forced to implement working from home backtracking necessary mergers in business.
But here is the big question, is that all there is to it?
An Advantage Amid the Global Crisis
As more traditional markets are facing collapse with the ongoing pandemic, it is safer and more reliable to turn to digital currency transactions. Enabling an online platform to deal with securing assets, investments, payments for goods and services, and mergers, among others, people are sure to embrace cryptocurrencies as the new normal.
Central banks around the globe are making notable efforts towards adopting the use of virtual currencies. Several countries, including Thailand, Uruguay, and China, are looking to introduce a Central Bank Digital Currency (CBDC) as an exchange medium. This move, if successful, will play a significant step towards mass adoption of virtual currencies across the globe.
Decentralized exchange platforms are arising daily, allowing blockchain technology to dominate transactions and system securities. All in all, cryptocurrency use is expected to rise, with or without the pandemic in question.
Market Drivers
Cryptocurrencies will offer to cushion the instability surrounding the economic structure. The incorporation of Bitcoin and other cryptos will boost the cryptocurrency market growth and its value at large.Â
Offering rewards for transactions using digital currencies will encourage people to shift into the cryptocurrency trend. There is a keen focus on factors that will enable the success of the crypto market, including market share, market size, competitions, strategies of crypto whales, potentials, et cetera.
The Crypto Community Raises Concerns
Potential users still have doubts concerning the legitimate use of cryptocurrencies with more cases of their involvement in illegal businesses. Mindful of the security of their assets, users are further concerned about cyber attacks. Such factors act as a backward drag to the growth of the cryptocurrency market.
Overall, as the fight against COVID-19 continues, so is the potential of the cryptocurrency market. Public opinion shows different views on the future of the cryptocurrencies, with some expecting growth and others, a decline. However, it would be best to assume that this is just the beginning of a brighter future for digital currencies.
