Cryptocurrency & COVID-19
As you know the most important thing to do in times of crisis is not to panic. But fear has a strange way to slip past common sense, particularly when there are large sums of money to be lost. The trading industry suffered a big hit, with no one willing to take the risk. Now we have huge volatility rates for pretty much any resource you may like to trade in or invest in. However, even with a situation like that, there are still ways to make money when dealing with crypto because if you know what to do and how to act, there are ways to benefit from high volatility. In this article we will address what is COVID-19, and how is it going to affect Cryptocurrency?
What is COVID-19?
COVID-19 known as Novel Coronavirus-19 is a new type of coronavirus belong to a large family of viruses that had previously not been identified in human beings.
No human being, without resources, can think of survival. From food to education and anything without currency one can’t get it. The World Health Organization pushed back on a report Friday that people should look out for currency notes as coronavirus could spread via currency. In addition, WHO stated that banknotes are spreading the coronavirus most, therefore, people must wash their hands after handling cash. Concerns have mounted over whether or not currency could play a part in spreading the virus.
How Cryptocurrency and COVID-19 Related?
When COVID-19 drives hospitals to break point in the worst-affected countries, nonprofits mobilize in crypto-currency for donations.
The COVID-19 had changed everything just from last week. It’s about everything from everyday life to global transactions. Where it adversely affects local business, it affects the Cryptocurrency. COVID-19 soon stunned cryptocurrency markets, with the price of Bitcoin plummeting below $4,000 in early March in the midst of the largest exchange inflows ever.
Do you think of a payment or transaction in which you don’t have to touch cash, even if the credit or debit card is used? Why can’t we speak of digital currency in that digital era?
” I should let you know, now is the ideal opportunity for us to dream about utilizing cryptographic forms of money.
No need to pass currency or cards to buy products. Easy, secure, borderless transactions, where your digital wallets are being used. You don’t have the fear of spreading COVID-19 by currency.
As the global economy struggles to remain alive, several countries are desperately trying to work out strategies for how the virus can be controlled. The demand for cryptocurrencies has also been greatly affected by the inexperienced virus that hit the planet at the end of last year.
Cryptocurrency and COVID-19 Effects on Market
Three months deep into 2020, more than 700,000 are affected, as are more than 33,000 deaths worldwide and further are expected to be effected by this virus in coming days the reports suggest . Coronavirus has impacted the daily lives of citizens – schools, colleges, and universities have been closed and a national lockout has also been enforced in some countries.
The cryptocurrencies declined along with the stocks until mid-March, and the correlation between the BTC exchange rates and the S&P 500 index set a new all-time high. The S&P 500 dropped by about 30 percent from 20 February to 15 March, while the price of BTC dropped by nearly half, from above USD10000 to USD5000. However, after the Federal Reserve declared emergency steps from 16-17 March The markets are not associated with each other anymore. The connection between S&P and BTC dropped dramatically, and the exchange rates for cryptocurrency started to rise following more falls in the indices.
With its rapid spread and the terror it inspires, COVID-19 has essentially halted the global economy, invading all areas of financial activity, including the realm of crypto-currency.
Firstly, the damage to Chinese imports has directly impacted countries across the world’s export economy. This affected numerous significant areas, for example, oil, agrarian merchandise, and metals. This affected numerous significant areas, for example, oil, agrarian merchandise, and metals.
Approximately 30 percent of crude oil prices plunged after Russia agreed not to help the rest of the oil producers in reducing production. This was followed by a significant decline in U.S. indexes by more than 6 percent along with the entire U.S. Treasury yield dipping for the first time in history below 1 percent.
At the same time, many market sectors that are officially deemed “non-essential” face the imminent threat of bankruptcy due to quarantine staff, logistical restrictions, diminishing assets, inadequate cash flows and ultimately – barriers to lending and debt restructuring helped.
This involves mining companies that are unable to continue to finance their company in part due to, in addition to the above-mentioned reasons, restricted ability to procure mining equipment from suppliers based in China, as well as the price fallout from the Bitcoin network over the past few weeks. Some bigger mining rigs are configured to shut down once Bitcoin’s price goes through, set lower limits, and return to full functionality once Bitcoin’s price recovers to some stage.
Future Prediction of COVID-19 effects on Cryptocurrency
Vincent Poon, Bathtub Global’s vice president, a digital asset trading company, said the “hash rate drop is due to global uncertainty similar to other assets.” He said the crypto market still has a “handful” of Ponzi schemes where people are invited to invest in a certain amount of coin and guaranteed high returns. Poon said there was also a cash-out of these Ponzi schemes which also influenced a coin’s price.
“It’s (the effect) isn’t totally different,” said Raghu Mohan, fellow benefactor of IBC Media, an advertising arrangements organization that works with square chain firms. He said the requirement for liquidity has dropped because of the pandemic.
He said that most retail investors who prognosticated a freeze have liquidated. COVID-19 doesn’t simply influence the cost of bitcoin or different monetary standards. Cryptocurrency mining is a big offline operation in which mining farms are close to data centers, requiring a ton of electricity and cooling system’s for the machines.