What Has Been The Effect Of The Pandemic On Cryptocurrencies?

Effect Of The Pandemic On Cryptocurrencies

The coronavirus pandemic has affected our life from different aspects. Whether it is our educational life, personal life, professional career, or our investment, everything was upside down globally as a result of this very pandemic.

Every industry has suffered several bigger problems and issues as a result of the global pandemic. The scenario is the same for the Crypto industry as well. We have witnessed a major fall in the price of Bitcoin during the first half of the year 2020.

The Effect Of The Pandemic On Cryptocurrencies

We can say that the pandemic has affected the Crypto market, but we can not guarantee that it has only offered negative impacts. Along with some negatives, the Crypto world has also witnessed several positive impacts from this global pandemic.

Here, in this article, we will discuss both the positive and negative impacts of pandemics on Cryptocurrencies. Let’s start with the positive effects, and then we will head towards the negative impacts.

The Positive Effects

We all might agree with one thing, the volatility of the Crypto market is inevitable. Despite that crucial fact, people are investing their money in Crypto coins and buying Cryptocurrencies.

This is because, despite the negatives of the Crypto space, the Crypto market seems more appealing to the crowd.

  • In March 2020, the prices of bitcoin had fallen down to half and reached as low as $3,780. After a few days, it has started to rise rapidly. Since that particular time, the Bitcoin industry has witnessed a huge rise and made records of reaching the all-time highest price, again falling and again creating history by breaking its own highest price record and increasing value.
  • Behind the pump that helped Bitcoin and other Altcoins reach new heights and make new records of highest price, sentiments have been way too bullish. As of the current time, the market capitalization of Bitcoin is around $$1.23 TN, which comprises more than half of the total Cryptocurrency market, $2 TN.
  • Despite the threats that are always there over the head of the Crypto world, along with individual investors, institutional investors are also attracted to this amazingly potentially enriched industry.
  • The global Coronavirus pandemic has managed to shake the global economic system. When the global economy has witnessed the largest turmoil of all time, the Crypto world managed to reach its peak and survive with all its dignity.
  • Gen Z is more fond of Cryptocurrencies and digital currencies. Due to the global pandemic, they understood that it is the digital and Cryptocurrencies, which are going to survive for a long time.

These are all you need to know about the positive effects of pandemics in the Crypto space. So, if you want to utilize this recent boom in the Crypto world, you should first open an account in a reliable and trustworthy Crypto trading platform.

The Negative Effects

Now is the time to shift our concentration on the negative effects. Everything comes with both negative and positive impacts. But in the case of this Coronavirus pandemic, we can claim that it has more negative impacts on our life.

But the scenario is not similar for the Crypto space. The Crypto space has not experienced so many negative sides. Still, there are some; let’s check them out.

  • Though the Crypto industry has experienced a sudden spike, the experts are saying that a sudden spike does not last for long. Just the way the spike of Gold and silver price did not last for long, it will not last longer for Cryptos as well.
  • Common people are always afraid of a sudden fall, which was witnessed in the first couple of months of 2020. People still remember it and are unable to gather the courage to invest in Crypto till now.

The Final Verdict

The most prominent nature of Cryptocurrencies is volatility. As long as the government is not issuing any clear instructions related to Crypto coins, there will always be confusion about whether to invest in Crypto coins or not.