Cryptocurrency and the COVID-19 Pandemic

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Written By Adeyemi Adetilewa

Many people would consider cryptocurrency, especially Bitcoin, safe-haven assets. Why is this, you ask? The coin is the only asset that has grown so exponentially in human history and has had an all-time high of $70,000 in November 2021.

During the beginning phases of the COVID-19 pandemic, many people looked to Bitcoin and cryptocurrency to store their money to hedge against rising inflation. 

Many technologies have now forked from the original open-source blockchain code that Satoshi Nakamoto shared with the world in 2009. 

Everything from play-to-earn blockchain games and complete decentralized financial institutions, there is no stopping the potential of the wonderous technology. 

The Decline of the Traditional Banking System

The pandemic has ravaged the world for nearly three years, and there seems to be no end in sight. It has crippled economies and destroyed the livelihood of many businesses and families worldwide. 

With rising interest and inflation rates, there seems to be no other alternative than seeking better value for our money. That is where cryptocurrencies and stable coins come in, as the world moves over to a one-world currency. 

The Decline of the Traditional Banking System

Most countries that have lost their legal tender have adopted the US dollar as a means of payment. These US dollars can be used to invest in Bitcoin and other digital tokens through a vast range of centralized and decentralized exchanges. 

There has also been a lot of talk regarding De-Fi (Decentralized Finance) these days, and rightfully so. Some of these protocols operate on a DAO (Decentralized Autonomous Organization), which is essentially a group of smart contracts that manage finances and staking through an algorithm.

This technology is built on the back end of the Ethereum blockchain and is a fantastic business model that allows fairness for all program participants. With the ever-increasing speed and adoption of this technology, there is no stopping what will come next.

Advancements in Cryptocurrency

We are only at the beginning phase of the cryptocurrency adoption curve, with around 150 million users holding digital assets currently. 

Every day, there are advancements of primary and alternative coins shaping how our future evolves. Recently, projects such as Cardano (ADA) have been making leaps and bounds due to adding blockchain games to its ecosystem and overtaking Ethereum by market cap.

There has been a significant sell-off throughout the cryptocurrency market lately, as investors fear the market going to zero. That is a far cry of what will happen as this is the cycle the market goes through every few years; the same thing happened during 2017.

Now is the best time to invest in Bitcoin because of its low price; it is practically on sale. Using an application like yuan-pay-group.net is recommended to start investing in cryptocurrency and provides a macro view of the price movements.

Cryptocurrency Regulations

Cryptocurrency Regulations

There is constantly talk about governments banning cryptocurrencies or mining in regions worldwide. That is nothing to worry about, as governments have been trying to control this technology ever since its inception. Do you know why?

Blockchain technology is open source and can be developed or worked on by anyone with internet access. That has brought developers together to advance this technology, and some governments have even started working with programmers to create blockchains plus cryptocurrencies of their own. 

Countries like El Salvador are a prime example of this, creating the Algorand (ALGO) blockchain to distribute Bitcoin to citizens through a proof of stake consensus mechanism. This technology changes how the world sees money and can only progress from here.

Conclusion

Cryptocurrency popularity surged during the COVID-19 pandemic, and the increased exposure has caused market caps to rise exponentially. With the adoption of cryptocurrency well on its way, there has never been a better time to learn more about it.

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