4 Major Ways COVID-19 Will Affect The Crypto Industry

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This epidemic the world is experiencing has affected different aspects of our lives and going to concerts, museums, cafés, parks, and even offices became impossible. We have grown more concerned about our health, job positions, private businesses, and the world economy. This situation has changed the way people all around the world perceive things and think so naturally these changes are reflected in their actions.

The crypto industry has also been touched by this crisis but not in the manner some may think. If you expected it to dwindle and disappear: you’ve got another thing coming. So, let’s see what are the predictions for this exciting field of finance called the crypto industry.

Businesses are embracing the crypto coins

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Businesses all around the world are looking for ways to cut costs and save more money and not just increase sales. In the time of crisis, it’s important to stay afloat so the question of boosting sales comes second. This is only natural since there is no point in investing money in different strategies to attract new customers if your budget isn’t stable.

However, if they can find a solution that would incorporate both, such as introducing cryptocurrencies as a payment method, they will gladly embrace it. Cryptocurrency transactions are faster and more secure owing to the blockchain technology that can also be implemented in mobile apps. The fees are also lower than PayPal or other popular platforms making crypto payment a win-win situation for businesses in most industries.  

Everyday financial transactions are becoming digital

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Another reason businesses have started introducing cryptocurrencies are their customers. Some states were in complete lockdown, for some there’s only a recommendation to go out as little as possible. While depression, anxiety, and overeating have crept up on people, they’ve at least stayed connected with the world via the internet and used it to also order things they need.

Strangely enough, online shopping and couriers became for some the only human contact in days. So naturally, besides traditional bank transactions, many wanted to spend the coins they’ve earned by bitcoin mining which is why more businesses started accepting them. Customers and businesses are interconnected and of course, as some businesses joined the game, more ensued and the same happened with customers so that the word about cryptocurrencies started spreading.

Regulations changing the game

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Many people are reluctant to start mining or trade the crypto coins because there’s no financial institution controlling the cryptocurrencies and they were also afraid about how their individual countries would perceive this kind of trade in terms of taxes. However, since many people had their salaries reduced, others lost their jobs so they started exploring ways to earn additional money – by crypto mining.

One thing led to another and now we can say with certainty that one of the indicators that the crypto industry is not backing down is the fact that more countries are introducing cryptocurrencies in regular state protocols. South Korea has recently passed a bill that provides a framework for the regulation of cryptocurrencies and exchanges which will make them more attainable in South Korea. As other countries follow in their footsteps, it will be easier to spend and trade them and they will become widespread.

China is launching a national cryptocurrency

For those who are keeping an eye on the happenings from the crypto world, the news that China is launching a national cryptocurrency doesn’t come as a surprise. While most countries in the world are struggling to prevent their private and state sectors from falling apart, this is not the case with China. Even though the epidemic most likely started in China, with their strict measurements, their economy came out almost unscathed and their citizens as well.

They have been working on their crypto coin since 2014 and they are not the type of nation that doesn’t prepare for every possible bump in the road. The interesting thing is that this crypto yuan blockchain will be centralized, as opposed to others. No doubt that great things will come from DC/EP (that is, Digital Currency Electronic Payment) but what’s important is that it draws more eyes towards the cryptocurrency which is right where they want them.

Final thoughts

While it’s still debatable whether wearing masks is something that is here to stay, there is no place for doubt in the case of cryptocurrencies. Ever since bitcoin came to be in 2009, they have been slowly taking over the world of finance and have proven that they are much more than a passing trend. If you still haven’t joined the game, perhaps this pandemic is the breaking point needed to nudge you in the right direction.

About the author: Mike Johnston is an avid blogging enthusiast and experienced content writer with a focus in business, technology, entrepreneurship, and real estate.