The coronavirus outbreak, which started in Wuhan, China, managed to profoundly impact almost all the currencies of the world, including the digital ones. It even changed blockchain technology to a great extent, something responsible for the success of digital currencies.
The modern-day society is trying to become cashless for quite some time now. A couple of decades ago, most of the individuals started paying for things, be it clothes or furniture, with credit cards, and then the digital currencies made their vivacious entrance.
Even though still in the budding stage, the digital currencies have created immense buzz in almost every noted location. Some reputed banking institutions were compelled to switch to digital payments, enhancing the latter’s popularity further. The Västberga heist of 2009 made Sweden go cashless. The amount of cash used in this Scandinavian nation went down to 13% in 2018 from 40% in 2010. Sweden has now started minting its own digital currency, e-krona. Amazing, isn’t it?
The massive crises, like the one in Sweden, has the capacity to trigger major changes in the way people live. The coronavirus is another such and it will increase the decline of cash everywhere within an abnormally short period. Even though the reports did mention that currency does not contribute to infection transmission, but, people still do not agree to use it. Instead, they are investing in digital currencies.
Cryptocurrency is the New Gold
Since time immemorial, gold is believed to be one of the significant and safest investments individuals can make. The stockholders, therefore, utilize it to diversify the portfolio. With the pandemic leading to lots of uncertainty in the vast finance market, many started purchasing gold earlier in 2020. However, adding gold to the portfolio was no longer easy. The borders were shut and the logistics caused enough trouble. Thus, the stockholders started looking out for new means of portfolio diversification, and stumbled upon digital currency.
Some professionals did predict that crypto coins would not fare well during the pandemic, but, the opposite has happened. Let us explore Bitcoin. Many thought that this digital currency will stay up to $10,000 when the Covid situation reaches its peak. Initially, Bitcoin alleviated to a great extent, and dropped much below $10,000. But, as people started using digital currencies owing to the crisis, Bitcoin went up to $11,000 in absolutely no time. That is simply great. If things continue moving in a similar direction, we will see Bitcoin along with other crypto coins prosper even more. So, crypto is rightly considered the new gold, and every stockholder wish to get it.
The Importance of Blockchain Escalates
If you have been following news related to finance for the past couple of years, you have certainly heard about the blockchain technology. It is growing at a considerable pace, and helps people address problems caused due to immutability, resiliency, and transparency. Without blockchain, one cannot even imagine to trade using digital currencies.
The coronavirus outbreak has persuaded larger segments of the population to delve deeper into the blockchain technology, so, this is an interesting time for it. The universal response to the pandemic will cause even more fascination, and more individuals will invest in it. Do not be astonished to see the top industrial sectors to rely on the blockchain down the road.
Not only this, blockchain technology may also prevent future pandemics to a great extent. An increasing number of educated individuals are realizing the necessity of blockchain, and a few argue that if the hospitals and clinics would have used it, battling against coronavirus would have been much easier. Expect the entire healthcare sector to opt for blockchain, and transfer substantial information in real-time.