How will COVID-19 affect the cryptocurrencies?
Cryptocurrencies have always been controversial. Banks and authorities of some countries have had particular resistance to them, but with time and increasing popularity, their attitude to cryptoverting is changing significantly. How will the global pandemic influence this?
Banks hate Cryptocurrencies
Bitcoin and other cryptocurrencies are not centrally controlled by the authorities and leave users free to trade them. This makes them not the most popular in some communities. The banks have a really bad attitude to them, fearing the loss of power in the financial world.
Greater accessibility and privacy
Not all people in the world have access to banks. The banks also are not available 24 hours a day, 7 days a week. This makes BTC an increasingly popular payment method. In addition, by investing in crypto, every user can stay anonymous. Compared to a bank account, where a person setting up an account has to share all his or her data with the bank and each of his or her transactions is booked, transactions concerning cryptovalots cannot be linked to a specific person.
This makes banks feel somewhat threatened by the growing popularity of cryptocurrencies.
Pandemic change the point of view
When the cryptocurrencies started to exist, the older and uncertain of modern solutions people, saw only unnecessary risk in them. As a result, the banks were also not favourable to this type of solutions. Over time, however, more and more people are becoming convinced of this type of payment and investment, which, especially during the pandemic and inflationary period, forces the banks to think about cryptocurrencies.
The coronavirus, despite its many negative effects,
may have a positive effect on cryptovalutes
During the COVID-19 pandemic and the general isolation of people, the world faced a growing crisis. It takes a lot of money to help businessmen at this difficult time. There is no easy solution. Authorities can solve this problem by taking loans or printing money. As you know, none of these methods will permanently set the economy back on its feet and could cause inflation. So where is the best place to take money at this difficult time?
Cryptocurrencies law regulations
Currently, there are completely different rules about mining and trading cryptocurrencies around the world. Each country has its own regulations or completely banned digging and investing in cryptocurrencies. This lack of law regulations makes it very difficult to enter the crypto market or create a company with global reach. Nowadays, in times of pandemic, more and more countries are beginning to introduce law regulations about cryptocurrencies, seeing in it an opportunity for additional earnings.
Will more and more people turn to cryptocurrencies?
Unstable financial markets, printing additional money, and uncertain value can significantly encourage more people to invest in crypto. Although their value varies depending on many factors, it will never happen that someone decides to produce more Bitcoin that will affect their value.
No one is able to control its value from above. In addition, turning the world over to online contacts, purchases and payments can also convince him of online currency. Will this happen? Will a side effect of coronavirus by the growing popularity of crypto? We will certainly find out in the coming months.