COVID-19: how does it really affect crypto industry

[vc_row][vc_column][vc_paragraph text=”Currently it cannot be denied that the things have changed a lot since the COVID-19 pandemic. This world is fundamentally different, and the crypto industry has also changed significantly.“][/vc_column][/vc_row][vc_row][vc_column][vc_heading title=”Why has the crypto market crashed?” size=”medium”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”Because of the quick spread of COVID-19 and the common panic caused by it, the world economy has almost collapsed. The virus has affected all financial sectors including the cryptocurrency world.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”First, the disruptions of Chinese supply chains have influenced the export economy of many counties. “][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”This harms many of the important fields such as oil, metals and agricultural products. Crude oil prices decreased by approximately 30% when Russia had refused to support other oil producers in their desire to reduce oil exploitation.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”This was followed by the sharp 6% fall of American indexes while the total US Treasury return dropped below 1% for the first time in its history.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”Meanwhile, many sectors of the economy that are officially considered non-essential, face the threat of bankruptcy because of the quarantine, logistical restrictions, scarce monetary flows and, as a consequence, different obstacles to credit assistance and debt restructuring.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”It touches mining companies as well since they cannot maintain their functioning not only because of the above-mentioned factors but also due to the limited opportunity to get equipment from Chinese suppliers and the Bitcoin price drop over the recent weeks.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”Some of the mining farms are programmed for automatic shutdown once the BTC price falls below some lower bounds. They will resume operating when the currency recovers.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”As far as such companies constitute about 65% of the total BTC mining capacity, it influences the hash speed – one of the key indicators of security and transaction speed.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”The hashing speed had reached its year maximum in March – 150 EH / s on March, 5, but then it fell to 105,6 EH / s just in 10 days.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”Despite the common expectations for that Bitcoin will become a safe haven that won’t be affected by the coming crisis, the currency fell by 50%.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”The DeFi market value has decreased from over $1,2 billion in mid-February to $682 million today.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”Under these circumstances no surprise that investors choose to withdraw their crypto investments and transfer them to traditional such as cash, gold or government bonds.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”But according to Mike MacGlone, the Bloomberg Intelligency senior analyst, the downward trend of crypto is temporary, and both gold and BTC will “gain traction “][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”once the fastest fall in S & P 500 history is over”. Thus, BTC has all chances to recover when the gold rises, and the new growth may be impressive.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”Sharp falls are always corrected by fast growth and vice versa. There are a few reasons to suppose that the crypto market will recover and, what is more, will surpass the previous tops.”][/vc_column][/vc_row][vc_row][vc_column][vc_heading title=”Crypto opportunities” size=”medium”][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”884″ img_size=”full”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”Traditional money is becoming outdated in the digital world.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”Especially now, when the Covid-19 is spreading all over the world by human contact, the benefits of contactless payments are obvious. This constitutes a basis for massive cryptocurrency integration under the stock market collapse. “][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”In part, due to the pandemic crypto legalization is sped up in such countries as Germany and South Korea along with rapid crypto acceptance by central banks like in India.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”The significant growth of BTC purchases has been noticed in Iran. All of these, together with such projects as Telegram TON and Facebook Libra, could guarantee crypto growth in the following 2 years, as Deutsche Bank recent report states.”][vc_paragraph text=”Other positive tendency is consolidation of the crypto community for creating charity organizations for coping with the pandemic consequences.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”The charity unit has recently announced establishment of the alliance # cryptoCOVID19 for donations in ETH and DAI intended for people suffering from coronavirus and other diseases.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”Furthermore, the decentralized autonomous organization called Collab19 enables individuals to purchase 100 DAO tokens every week, and these tokens may be used to identify which charity organizations should be supported by the remained assets. Crypto enthusiasts can also give donations to artists with the help of Bandcamp and to the developers of COVID-19 3D models from Folding @ Home that are searching for vaccine. Therefore, crypto potential is not only increasing but it is also supporting fighting the pandemic. “][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”In this way, what can seem as crypto market crash may turn out to be a sign of the major spread and the growth of investors involved in the market. Although BTC has failed to meet the expectations of being a safe heaven, the crypto industry is becoming stronger due to the correlations with stock market. The current crisis does not invalidate the progress that has been reached, it may in fact strengthen the crypto position after the pandemic is over.”][/vc_column][/vc_row]