The current cryptocurrency market has been shaken amidst the coronavirus outbreak. However, cryptocurrencies were built mainly for situations like these. The outbreak has been proven to be a boon and a curse to cryptocurrencies.
Here, we have tried to throw some light on the positive and negative impacts on the cryptocurrencies amidst the virus outbreak.
Pros
- Paper currencies tend to spread germs hence people are slowly getting digitised and turning towards cryptocurrencies.
- As and when the currencies are getting destabilized in most of the virus outbreak countries, the safest option would be turning towards the cryptocurrencies.
- The Central Banks would also move towards quantitative easing by accepting the cryptocurrencies.
Cons-
- The outbreak has proved to be harmful mainly for the cryptocurrency mining operations. For Example- China had almost 70% of the share in Bitcoin Mining due to the availability of cheap electricity and the other technological prowess. Due to lockdown globally, all the mining operations have been hit hard.
- All the cryptocurrency-related events have now been cancelled and are not switching to virtual meetings.
With a damaged global economy and the failing markets it is now the right time to think out of the box and give opportunity for real innovation and cryptocurrencies do have the potential to bring up the economy and heal the broken economy. This occurrence will certainly make the cryptocurrencies stronger and all the Central Banks and the financial institutions will focus on adopting the cryptocurrencies. People will now be more confident in adopting and trading the cryptocurrencies and will prove beneficial for the investors.
Necessity is the mother of invention and there are opportunities available in such crises. Expect for the best and stay home and stay safe.