Many people found themselves trapped in the broken economy labyrinth, searching for new alternatives for economic growth and trading of goods such as blockchain technology.
Bitcoin first emerged as a response to the 2007 global economic crisis, rapidly increasing in value ever since. There’s no doubt about its fluctuations all along the way, making some people doubt its stability while others keep investing up to date.
According to many people during the pandemic, Bitcoin is described as a safe asset with high-performing abilities in volatile markets. The value of this altcoin is mainly influenced by investors’ confidence rather than the political decisions of governments. Bitcoin has maintained fairly stable value during the pandemic, while many traditional banking institutions totally collapsed.
Although it went through some challenging value drops, the most traded currency in the world regained its value over time, unlike some central bank-issued entities. Today, many investors incorporate Bitcoin as one of their payment methods, securing their assets by avoiding market fluctuations and using trading apps like Yuan Pay Group to make their transactions faster.
As a secure digital currency, Bitcoin attracted millions of new investors during the pandemic when people were obliged to stay home. Looking for alternative investing routes, many decided to give Bitcoin a try by venturing themselves into blockchain technology.
Numerous individuals throughout the world invested in Bitcoin without even understanding how it works, learning along the way about all trading possibilities the cryptocurrency market offers.
Cross-border payments at a low cost signaled the new start of the crypto era, while people searched for secure online investments as the only option during the extended lockdowns.
The Decline of Traditional Banking Systems
The Covid-19 crisis forced many traditional banking institutions to shut down for several months. During that time, the world needed innovative financing solutions such as Bitcoin. Although several banks intend to launch their own digital currencies, Bitcoin remains the most traded and most appreciated cryptocurrency on the market up to date.
People depending only on fiat money had severe financial crises during the pandemic as the banks were forced to close. On the other hand, the ones using Bitcoin and other cryptocurrencies don’t need bank accounts, thus can keep trading and make transactions even when socio-economic catastrophes overwhelm the global market.
Bitcoin enabled people to transfer money across borders during the pandemic, paying fewer fees. These transactions don’t have an intermediary, allowing seamless transfers at a lower cost for all users.
Coronavirus has increased the demand for cryptocurrencies worldwide. Before the pandemic, blockchain technology was treated as a confusing software thing by many, while after the first lockdown, it became a mainstream investing strategy for millions of new Bitcoin owners.
Offering a decentralized monetary system is the essential advantage of Bitcoin over conventional banking, attracting even more people to join the digital financial revolution that doesn’t seem to end any time soon.
How Some Businesses Survived Creating Bitcoin Related Products?
Many companies have created technologies and products around Bitcoin, increasing their gross income during the pandemic. Also, new technologies like new crypto wallets increased the popularity and the efficiency of Bitcoin, allowing more people to use it as a payment asset.
To sum up, the coronavirus pandemic almost completely wiped off the global economic market while Bitcoin muddled through the storm and landed on all four. Financial experts are expecting an increased value of Bitcoin in the future, which will attract more new investors.