Covid Effect on Cryptocurrencies — Is An Opportunity Hidden?
In the time of Covid-19, cryptocurrencies are increasingly gaining traction. The era of lockdowns and curtailed social activities is prompting people to replace cash with alternate methods. While the time may be hard for people in general, it is rewarding for the crypto exchange software solutions, and companies that invested in raising and maintaining digital assets.
Why things were not great in the initial days of the pandemic
However, in the initial days of Covid-19, the situation was not so ‘rosy’ for crypto enterprises. Raising funds became difficult in the backdrop of corona and the Initial Coin Offering (ICO) market took a dive. Blockchain startups were compelled to seek venture capital, which was never easy. With uncertainty veiling the global economic space, attracting this capital also became hard.
How Covid pushed crypto
Gradually, people realized that economic activities couldn’t be stopped for long and things moved closer to normalcy. Regular market activities though remained subsumed, and people preferred online payment, bringing crypto into the picture.
Corona forced in remote interaction and this, interestingly, worked in favor of web-based businesses as they were used to collaborating from a distance. Hence, when the work shifted to the web, is didn’t make much difference to the blockchain industry. Despite working remotely, the blockchain industry was able to come up with cutting edge software.
Covid making more people used to cryptocurrencies
As the number of people with experience in using cryptocurrencies increases, the public in general and decision-makers will realize a key role digital coins are going to play in the future. The world earnestly requires global currencies that transcend national boundaries and carry the same value even in remote corners. When stores and restaurants will readily begin accepting payments in cryptocurrencies, there won’t be really any need to carry fiat currencies or to exchange your native national currency with the coinage of the country you intend to visit.
Crypto-equities relationship in Covid era
The advent of coronavirus took the relationship between crytpocurrencies and the equities market a level up. On 12 march, for example the price of BTC dropped below $4,000 after the S&P index had a sharp dive because of an unexpected flight to liquidity. So many investors had margin calls in equity, it had to be covered by liquidating digital coins into cash.
A curious study will be to examine how cryptocurrencies and equities compare in terms of liquidity. If one is given a BTC and an equity share, which of these will they find easier to convert. Crypto exchanges have made great progress in recent times and many enthusiasts will be quick to point out that converting crypto to fiat may actually be easier in some places!
What to expect in the post-Covid situation
We can predict with a certainty that the post-Covid situation will witness the demand for virtual, fast, and secure currencies. Enterprises and people will require a robust infrastructure that facilitates usage of cryptocurrencies. The ecosystem should be focused on reducing risk and enhancing efficiency in crypto payments.
Governments around the world are pumping cash into the system to energize national economies and move the wheels. This is likely to promote inflation and reduce the power of fiat currencies. In case the value of dollar and other domineering fiat currencies decreases in the coming years, cryptocurrencies may become stronger and become a global currency of sorts.
In close future, the digital currencies have no chance of becoming a safe haven like gold or silver. However, Covid has triggered monumental changes in the financial system and fiat currencies themselves are facing a threat. No surprise then if a few investors see digital gold in cryptocurrencies.
Turn Ethereum exchange software into an opportunity
Ethereum is the dominant blockchain today when it comes to building applications. Its native currency ETH also stands second in popularity, next only to BTC. Getting cutting edge Ethereum exchange software and starting your own crypto exchange will provide you a lucrative business opportunity.
Covid is transforming financial system and many of these changes will be here to stay. If you intend to start a crypto enterprise, it is a favorable time to set sailing a white label digital asset exchange. Find a reliable partner and launch your venture.
Antier Solutions can help you start own cryptocurrency related business in the time of lockdowns and unlocks. We offer bug-free crypto exchange software solutions that include crypto exchange development, popular clone scripts development, crypto wallet development, and more.
Book a free demo of White label digital asset exchange and understand how to begin earning revenue with it.