{"id":718,"date":"2020-05-10T07:59:35","date_gmt":"2020-05-10T07:59:35","guid":{"rendered":"https:\/\/www.act4apps.org\/?p=718"},"modified":"2021-08-25T16:08:30","modified_gmt":"2021-08-25T16:08:30","slug":"the-impact-of-covid-19-on-cryptocurrency-what-you-should-know","status":"publish","type":"post","link":"https:\/\/www.act4apps.org\/the-impact-of-covid-19-on-cryptocurrency-what-you-should-know\/","title":{"rendered":"The Impact Of COVID-19 On Cryptocurrency: What You Should Know"},"content":{"rendered":"
The Impact Of COVID-19 On Cryptocurrency What You Should Know<\/p><\/div>\n
The year 2020 had an almost pleasant start until the COVID-19 broke loose, gripping the world economy. Just like its predecessors, the Black Plague and the Spanish flu that caused millions of deaths and brought the world to a standstill, the pandemic is projecting similar trends. However, unlike then, the technological advancement in this era enables people to work remotely, shop online, attend classes, transact online, and communicate with family miles away.<\/p>\n
That is good news. However, the inevitable question that cryptocurrency investors are asking is, what is the impact of the pandemic on the digital coin? Cryptocurrency has long been named “a haven asset” because it operates in cyberspace. But is it? Given the fact that cryptocurrency was first created in 2008, the currency has never experienced a global economic crisis.<\/p>\n
The Negative Impact<\/h2>\n
The virus started in China, the world’s largest bitcoin trader. The impact of the illness on the cryptocurrency market was anticipated when it hit Wuhan, long before the COVID-19 became a global pandemic. The lockdowns and quarantines have disrupted the mining farms\u2019 workflow. Thus, the prices of the cryptocurrency mining equipment have suffered, making them ineffective. As the mining firms strive to strike a balance with the market dynamics, they have become even more critical. That also has a significant effect on the prices of cryptocurrency.<\/p>\n
As the world watched in awe when the stock market prices dropped drastically, the cryptocurrency market also experienced an unprecedented crash. Statistics from CoinMarketCap indicate that the top-ranked crypto coins experienced over a 30% fall in market price. Bitcoin price, for example, fell by over 44% on March 13, hitting a low of $3,791.9 from $10,502 recorded the same date the previous month. Later the price rose to $ 5,000. It has been steadily picking up as it is currently at $7,324. The virus’ spread caused incredible panic, and most people rushed to sell, causing an unexpected influx that the trading system struggled to support. This lag was swiftly rectified, but it might influence the choice of traders in the future.<\/p>\n