The latest news concerning cryptocurrency prices is full of indications that the cryptocurrency industry is growing, despite the virus outbreak. The latest data from leading exchange Coinbase illustrates this trend in particular.
Coinbase recently announced that they have recorded a 50% gain in bitcoin price over the past month. This means that one full bitcoin was worth $1,060 on February 2nd, but on February 19th, it was worth $1,700. Additionally, total coin volume has increased by more than 60% in this same timeframe.
In addition to growing interest among investors and traders alike, there are also signs of progress regarding the pandemic’s effects on the cryptocurrency value. More than a third of all businesses surveyed said that they were aware of companies in their respective industries accepting payments with bitcoin or other cryptocurrencies as a result of the pandemic outbreak. Getting access to crypto has also become much simpler for the uninitiated, visit OKX, a site that serves as a great entrypoint for crypto beginners.
Cryptocurrency Has Been More Resilient Than Traditional Stocks
Even in the face of a worldwide epidemic, cryptocurrency markets have shown some resiliency. While stocks and traditional currencies have been affected by the medical crisis, cryptocurrencies like bitcoin have remained firm, indicating that they may be more effective long-term investments.
What makes cryptocurrency such an attractive investment? It’s based on blockchain technology, which involves a distributed digital ledger shared among many users to track transactions. Blockchain is inherently more secure than centralized banking systems because it doesn’t rely on one single authority: it’s publicly controlled by its users. This decentralization ensures that no single person or entity can tamper with the ledger for their benefit at the expense of others.
Cryptocurrency also faces fewer barriers to entry than certain types of investment, which means its accessibility is expanding as time goes on. To purchase stocks or other forms of traditional currency like the euro or dollar, you must open an account with a financial institution. Which in turn requires you to provide ID, and meet minimum balance requirements to be eligible for trading. Both criteria are not always possible for everyone.
With cryptocurrency, these restrictions are lessened—anyone can buy bitcoin or Ethereum (the second-largest crypto by market cap) at any time from anywhere in the world using only their smartphone.
Some countries restrict digital currency access. The inherent level playing field created by blockchain means that accessibility shouldn’t be an issue if you’re willing to put in some research into how you can legally acquire coins from your area of residence.
It should also be noted that traditional currencies can become devalued over time due to political changes. Since there’s no country backing crypto and its use is unregulated, its value is determined solely by speculation within the marketplace itself. This has been seen through 2017’s large gains despite political unrest in countries around the globe.
The Shift to Remote Work Brought Has Led to Increased Awareness of Digital Currencies
With the widespread adoption of COVID-19, a global pandemic that caused over 10 million deaths, many people have shifted from traditional workplace environments to remote work. As COVID-19 has left the planet in significantly worse shape than when it entered it, this shift has allowed for a greater emphasis on technology in general.
With the rise of cryptocurrencies like Bitcoin and Etherium, the necessity for safe transactions with an increased level of transparency has become apparent.
Digital currencies are a form of electronic money that use cryptography to ensure secure transactions while being protected from fraud and theft. They continue to show increasing value as more people begin adopting them. Since COVID-19 began spreading around the globe in 2080, its values have risen dramatically.
Cryptocurrencies are capable of providing users with increased security and privacy when compared with traditional online payment systems such as PayPal or credit card providers like Visa or MasterCard. Since all transfers use decentralized technology run by computers spread across different countries instead of a central system connected to a bank or other financial institute, there’s no single point of vulnerability for hackers.
If one computer is infected with malware designed for stealing digital tokens, it can’t steal them all because each transfer uses a different pathway. This makes digital currencies safer than other forms of online payments. It also offers some relief from concerns that credit card information will be stolen by hackers every time you buy something online.
Cryptocurrency Is a Popular Investment for Consistent Growth
When the world is struck by disease, chaos, and fear, other investment vehicles tend to falter. Stocks typically lose their value in the face of widespread panic.
In contrast, cryptocurrency has historically demonstrated steady growth despite uncertainty. This is partially due to its resilience against market manipulation. As long as all your funds are encrypted properly, there’s no way for someone else to steal them from you or freeze them. For example, a bank account can be frozen if you don’t keep up with your taxes or mortgage payments.
Instead of relying on banks and governments to guarantee your money’s safety, cryptocurrency uses cryptography and decentralization. This is so that there’s no single point of failure for hackers or governments to target.
While some call cryptocurrency an alternative investment vehicle, one that may replace traditional investments such as property or gold, it’s important to remember that it does sit on top of these older models of economic activity. Cryptocurrency is still vulnerable to fluctuations in value. Just like stocks can fluctuate wildly during times of financial crisis, so too can cryptocurrencies swing wildly from day to day depending on how the market feels about them at any given moment.
However you choose to invest your money (if at all), you must understand what you’re doing before diving headlong into unfamiliar territory without understanding all the risks involved.