In less than 4 months, the novel Covid-19 transformed form just one of the usual virus epidemics in recent memories into a worldwide pandemic, threatening to cause severe and drastic changes in the world’s most significant problems as we know it.
Several have already termed the recent outbreak as the not so anticipated WW-III, as it continues to spread all over the world. Though, there’ve been specific actions taken. These taken actions were to curb aggravating situations to assuring the worldwide does not come to an impending held in digitally each field.
So, let’s dive into details on how coronavirus affects cryptocurrency?
The Rise and fall in virtual money Prices
A glance at the digital money trading over the past four months shows that the market has been extremely volatile. The digital money market has seen a boost as an outcome of the tension among the US and Iran than gained arising from the threat of the Covid-19 outbreak. Now withstanding its recent run bull run about $9,120, it’s yet to match it 20k USD all-time in late 2017.
While it might be true, if we consider the dismal Bitcoin traders deal early Dec 2019 up until late Jan this year, BTC’s recovery witnessed a 50 percent boost in value form 4,000-6,000 USD.
Similarly, other main digital currencies, such as XRP, ETH, and BCH made significant value gains as investors returned capital into virtual assets. Still yet, analysts are cautious about attributing the advantages to the worldwide outbreak. These threats are justified given that in past Feb, the value of BTC soared to about 8k USD, and within a matter of hours, and it had fallen more than 20 percent to 6000 USD.
Therefore it remains questionable if digital money’s pandemic status eventually will appeal as a secure haven asset.
Crypto Asset Conferences Cancelled
When the outbreak started to spread beyond China’s borders, it clear that Coronavirus was no longer a Chinese issue. As soon as the Covid-19 spread to other parts, the first handful block chain conference was canceled. By the starting of April, efficiently, all digital money conferences decided to pull the plug, and most of the meetups are now canceled.
Since the digital asset sector has been inundated with conferences in the past few years, a break might not be bad for the community, but for the organizers of the conferences, that means taking an economical hit. Fortunately, for organizers and die-hard digital money conference-gores, there’s still the choice to host a digital event. That’s rightly what the industry-leading Consensus conference has opted for in light of the Coronavirus pandemic.
Instead of hosting a conference in a hotel in NYC, this year’s edition of Consensus will be distributed digital experience.
Raising Funds Becomes Tough
With the decreasing prices in the IOC market, block chain start-ups are now switching their focus to attract venture capital. Conversely, give the spread of the Covid-19 and the blanket of uncertainty over the worldwide economic space, this way of attracting investors and traders has suffered challenges. This is because private events have been curtailed, and the investors are a bit more careful in the investments they want to make now and more than ever.
CEO and Founder of market data provider Block Facts, Christopher Wagner emphasizes it aptly when he spoke on the difficulties of the blocks startups are presently facing in raising investment funds. He states that the Covid-19 outbreak becomes venture capitalists are pleased to hold visual meetings and provide deep range financing, there has been reducing in money circulating the niche market.
Remote Work Becomes Routine
Most startups, digital money projects, and their customers have boosted remotely form the start. In order words, the worldwide need for working remotely has no reasoned any significant alterations to the block sector. Interactions have continued seamlessly without compromising the class of communications among the parties.
Also, irrespective of the difference in time zones, productivity output/input, and management of remote command crypto markets maintains efficient communication. Even if the outbreak has hard-hit your workforce, the elegance of working remotely is that you can get a ton of helpful services online.
Effect on digital currency Mining Hardware Supply Chain
Another massive impact the Covid-19 outbreak has had on the digital money market is the supply of virtual mining. More clients or customers have experienced delays in shipment form digital money mining hardware manufacturers due to the Covid-19 lockdown in China.
These virtual mining operations primarily need hardware and potential to control, so they need spars management or human activity. Though, crypto mining manufacturers are limited by requiring either quarantine or self-isolate to curb the spread of Covid-19.
What this means is that since digital money mining is not considered as an essential service, the supply chain in getting tools to consumers has been struck due to the factory and border closures.
In spite of all negatives emerging form every business field of the world due to the Covid-19 outbreak, it’s still safe to say that several mistakes are capable to survive these trying times and even advantage from it. There’re no doubts that the possibility of a worldwide recession and capital despotism lurks in the shadows of these hard times as GOVTs of the world are prepared to induce capitalism as a way of solving these issues.
Initially, the crypto market might not be highly affected by these impending changes, but that does not mean it is not safe from it, especially in the foreseeable future. This is because the world is highly prepared to use every available measure to fight back the Covid-19 pandemic using communication and medical function to suppress the pace at which it spreads.
Return of investments is one of the major keys of businesses, and imposed lockdown in several states of the world is an opportunity to use prices in trading according to financial experts. There’ve also been updated features of automatic-software tracking helpful info for digital money trading such as prices, charts, and analysis.