How is COVID-19 impacting the cryptocurrency industry?
The COVID-19 pandemic which started sometime last year has now expanded to the lengths we had never imagined. Most of the countries around the world have been affected by it and so are the world economies.
Even the crypto market took a significant hit when the Bitcoin price started dropping in Mid-March due to the global pandemic situation.
So, how bad are things for the cryptocurrency industry? What does the future hold for crypto investors? When will the market recover?
If you’re wondering the same, continue reading.
The current situation of the cryptocurrency market
Well, all the experts around the world agree that the crypto market has taken a plunge due to the ongoing recession situation around the globe because of the COVID-19 pandemic.
An expert says that this is similar to any simple recession, which will eventually end and the market will be back on its feet. It’s all about demand and supply. Due to the coronavirus pandemic, the demand for cryptocurrencies, in fact, any currency, has dropped, but the supply is still the same.
Now, we have the option to stop the supply, i.e. stop new production if we want to balance things out. Alternatively, we can simply wait for the things to get back to as there were, which is probably the best solution in this situation.
But, if you look carefully, you’ll find that the currency pandemic situation has not had any large impact on bitcoin and other cryptocurrencies. That’s because cryptocurrencies are decentralized by nature and have little to do with actual economy or government regulations.
So, theoretically, whatever happens in a country or even the world should not have any significant impact on the price or value of these digital currencies. In fact, not having a deep connection or relationship with economies is what makes cryptocurrency one of the safest forms of investment today, especially in a crisis like this.
Why you should buy cryptocurrency now
Even though it’s safe and recommended to buy cryptocurrencies any time and in any situation, times like these when the markets are at an all-time low due to the crisis situation, it’s the most beneficial to invest in digital currencies.
Even though the cryptocurrency market, including the prices of most coins including bitcoin, Titan coin, ETH, etc. were not greatly affected by the ongoing coronavirus situation, there has been a visible drop in the prices because of the decreased demand.
This is because people are looking to save their money in this crisis situation rather than spend or invest it, as they need money now more than ever. As the demand and trading activity involving cryptocurrencies has somewhat dropped in the last couple of months, so is the price of most cryptocurrencies.
Basically, this is the best time to invest in cryptocurrencies or buy your favorite titan coin as the price is low and you can buy in bulk. Once the market starts recovering, cryptocurrencies will recover back and profit you more than you can imagine.