The COVID-19 pandemic has, among other things managed to throw a monkey wrench into the gearbox of the world economy. Some experts claim that it will take years, if not decades, to recover from the screeching halt it caused globally. Everything, from education to travel, has been put on hold. Billions of people have spent months in quarantine, unable to go to work or earn. The financial markets are being hit the hardest. The S&P 500 index is at its lowest since the 2008 meltdown. However, everything isn’t as bleak as these facts would suggest. There is some silver lining that can prove quite beneficial to the world economy. One of those is the effects these events have on the crypto market.
COVID-19 And Crypto Market
There is a slow, but steady trend of people increasing trust in cryptocurrencies to the detriment of traditional investments like stocks, real estate, and even gold. The COVID-19 pandemics has drastically increased this tendency. The biggest beneficiary of this will be Bitcoin, but all other cryptos stand to gain a lot, once the dust has settled. For instance, according to a survey done by The Tokenist, 12% of people would prefer $1,000 in Bitcoin to 1,000 in stocks. Around 16% would prefer Bitcoin to gold, while 17% would prefer bitcoin to real estate investment. The biggest difference is with government bonds, with 38% of people who would prefer bitcoin over them. When compared to a similar study done in 2017, the trust in bitcoin over traditional investment has increased by 13%. This is to be expected, as Bitcoin was founded partly as a response to the 2008 financial crisis. As we are officially in recession, it is only logical that it will gain in value in the future.
Is Crypto Market Immune To The Coronavirus?
As COVID-19 continues its rampage across the globe, European stocks have reached the lowest point since 2012. The disruption of the supply chains, rising unemployment, and uncertain prospects have caused world markets to shrink to dangerously low levels. At moments, it seems that all the progress made in the previous decades over establishing a truly global economy may come undone due to a viral breakout. All this has forced investors to seek low-risk vessels for their capital. As we have seen, traditional investments have been losing ground to cryptocurrencies, and bitcoin profits have been a tempting alternative. Many experts agree that in the near future we will see massive value increase for bitcoin, with some sources claiming that it could reach $50,000 by the end of 2020 and possibly $350,000 by 2045. While these claims have yet to be proven true, it is clear that the crypto market may very well be immune to coronavirus.
Increased Interest in Cryptocurrency
With rising risk attached to fiat currencies, we are witnessing a surge in interest for cryptocurrency coins. People are trying to learn more about them. Fortunately, there are plenty of resources on the Internet that they can use, like the one teaching you how to…