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Marked Effect of COVID-19 on Crypto and blockchain industry


 Corona Virus Disease 2019, one of the largest pandemic faced by the 21st century human race with no defined cure found yet. With in the span of 4 months the virus has managed to reach every country. Not only that, the global economy is completely facing recession as an outcome.This is due to the fact that the local and global industries are shut down as a preventive measure to contain the spread of corona virus.

Even though the world has faced epidemics before, the impact it had on the global economy was negligible. But in the case of corona virus commodity market and the Forex market is facing the heat.

COVID-19 impact on Cryptocurrency
 
Amid the economic crisis, the value of Bitcoin had a surge for the past month. Presently per Bitcoin values 6,314.79 USD. This surge is unavoidable as China, the major country that handles the cryptocurrency transactions had disrupted work flow because of the major outbreak in Wuhan, China.
Experienced analysts call this event as “Black Swan”- a negative incident which cannot be predicted earlier. In such cases the financial markets acts differently. At such times, the investors and traders usually sell off their equities and invest in gold and securities to minimize their risk factors. Now, Cryptocurrency have also joined the asset class of safe haven making them- Gold 2.0.

Financial Industry

The financial institutions are closing down the shutters amid the outbreak of coronavirus. This has made people to see the prospects of FinTech Companies. Many industrial leaders are coming out with a view of how FinTech industries could possibly take on the crisis easily.

In this scenario, understanding the potential of FinTech companies is the best way to prepare for the future. With this situation, the reliance on the crypto based solutions such as blockchain based payment, Bitcoin Wallet Development and coin/token development may be adopted in the coming years.

Paper to Paperless economy

The researches around has given out that coronavirus stays on objects for longer duration of time. This reason has caused the Chinese officials to quarantine fiat currency usage to minimize the spread of the virus.The increase of cryptocurrencies is expected be increase multifold due to such reasons.

Blockchain Technology
 
The potential use of blockchain technology during such crisis has been on round among the people. There are various ways in which the blockchain technology can serve as a great tool to tackle the situation.

For Tracking donation- It helps to track the donations that’s been contributed by the individuals until it reaches the required destination.

For insurance claims- It can make the insurance claims easier through online process without coming in contact with any other person.

For tracking the supply chain of medical materials- The desired quality products can be tracked from its dispatch to maintain a steady flow of goods.

For tacking of data- Many healthcare institutes has associated with blockchain solutions in order to track proximity of the virus thus ensuring a tamper free information being shared.

For cross border payments- Reducing the fee amount being paid to transfer donations between different organizations, government and health care institutions. Thus, saving huge amount by reading bank transfer fees.

Conclusion

Before coronavirus, many factors threatened the crypto industry, but noting changed the expansion of crypto world. Political issues, hacks, scams, government regulations, economic depression are few that can be named among the others. Even though we cannot directly assume that crypto assets will become a solution for the present global crisis, but it can act as a potential tools to save the economic turmoil.

We, Pulsehyip provide crypto solutions including cryptocurrency exchange development, wallet development, P2P exchange development inclusive of many other futuristic features.

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