Undoubtedly, the COVID-19 pandemic has brought unexpected changes in people’s lifestyles. Aside from that, the recent global health crisis has wreaked havoc on people’s interaction, and financial security, and structures. In case you didn’t know; blockchain technology has been in existence for over a decade, and many organizations nowadays implement them to use its infinite potential to address some of the globe’s most challenging issues.
Indeed, we are now in an era of a monetary revolution so complex that few of us understand its overall extent. The digital transformation of the web is accelerating this trend. Aside from that, the COVID-19 pandemic has rushed it. To provide you with a specific example, let’s take a look at the divergent performance of the three major monetary units namely: gold, U.S. dollar, and of course, Bitcoin.
Even before the presence of COVID-19, digital assets have become more popular, and become the driving force for the majority of developments. The previous decade has witnessed a unique kind of currency emerge. For instance, Bitcoin cryptocurrency has bloomed at the perfect timing to save the globe with a distinct definition of reliability, transparency, and speed. It’s all possible because of Bitcoin’s matching revolution of blockchain technologies.
Despite Bitcoin’s rising popularity, COVID-19 has brought unprecedented changes to every aspect of the planet. That said, people are wondering how COVID-19 has impacted the future of Bitcoin. Hence, let’s discover together what you should know regarding the future of Bitcoin in a post-pandemic era.
Virtual Currency of the Future
Bitcoin may soon be the virtual currency of the future, or perhaps the future is now as it happens. As mentioned, the COVID-19 pandemic unsurprisingly accelerated the pace of monetary transformation. To put things in a clearer perspective, let’s take a look at how previous monetary evolutions shaped a new era. For instance, during Black Death, an improved monetization of the English economy was evident. Before the bubonic plague, the feudal system had obliged peasants to labor and required them to settle their rents in kind. Hence, they have given their share of all their produce to their landlords. With continuing labor shortages, in-kind settlements have shifted towards fixed, annual payments in cash.
In a similar instance, the COVID-19 pandemic has been vital for both cryptocurrencies and Bitcoin in general. First, COVID-19 accelerated our advancement into a more digital era. Hence, what should have been expected in ten years has been achieved in less than a year. Individuals who haven’t tried online banking were forced to adapt since many banks are closed during lockdowns and quarantine restrictions. Lastly, the global health crisis has exposed many financial frauds and financial surveillances. As a result, all trends have portrayed Bitcoin as an excellent alternative to traditional money and gold.
On the contrary, Bitcoin is a top-performing and authentic cryptocurrency asset that is playing its own game. It has weakly associated with the world’s market trends. Hence, the competition is now between gold and Bitcoin for the reputation of a more independent and effective protective asset. However, cryptocurrencies have better advantages. Gold manufacturers rely on transport and logistics. That said, they’re dependent on the industries that are more prone to logistics issues and disruptions. On the other hand, Bitcoin is a virtual currency that exists in the online world and isn’t affected by logistics problems and state border restrictions. Hence, cryptocurrencies like Bitcoin are more significant during a global crisis when traditional ties are hindered and disrupted.
Is Bitcoin Immune to COVID-19?
With COVID-19, many companies, sectors, people, and businesses are brought to their knees. Speaking of financial matters, the European Union has seen stocks at their lowest levels since 2012. Specifically, FTSE Mib in Italy had fallen to 1.6%, Dax in Germany was 2.7% lower, and the European Stoxx 600 Index had fallen to 2.7%. That said, many investors are in search of a secure and better investment platform favorable to an improved long-term standpoint.
In addition, the market disturbances caused by the pandemic have accelerated the development of fintech and digital money apps. As a result, the trend has accelerated the overall innovation. In case you didn’t know, the COVID-19 pandemic has initiated a 72% surge of fintech apps around the EU as many people adopt new working conditions.
Digital currency such as Bitcoin is safe-to-use to settle remote payments. What was once a convenience is now a necessity since many businesses and consumers prefer electronic payments to avoid handling virus-infected cash.
Although Bitcoin is still in its early development, and its value is still unknown in the foreseeable future, it has been the most promising and exciting currency development ever. With Bitcoin, many billionaires, investors, and even the general public have shown interest in an excellent alternative to precious metals and fiat currencies. Aside from that, Bitcoin has unlimited potential when it comes to the growth of prices.
What Will Happen to Bitcoin once the world recovers from COVID19?
The COVID-19 pandemic has a massive impact on the emerging cryptocurrency industry. That said, the world is already addressing concerns related to liquidity, regulations, policies, and fraud. It’s only the beginning of the cryptocurrency world. However, many companies and organizations have already implemented new rules and products. Despite that, Bitcoin also comes with uncertainties that are still addressed by many sectors. Although it’s becoming a mainstream asset, it is yet to be regulated. Government sectors worldwide must implement bold measures to standardize Bitcoin and make it more convenient and easier for the general public to sell, purchase, and invest in Bitcoin. Until then, the cryptocurrency industry continues to encounter challenges amidst uncertainties. In the foreseeable future, people are hopeful to have a more positive impression regarding Bitcoin.
As the world continues to recover and battle against COVID-19, Bitcoin’s acceptance and value will continue to grow its reach. With Bitcoin, payments for daily coffees at your go-to coffee shops, and monthly payments will soon replace traditional on-hand payments.
Bitcoin has offered a new monetary canvas, providing its users a platform to paint the beginning layers. In a post-pandemic era, the time eventually comes where many people add color, life, and paint to what was once a plain canvas for Bitcoin. Perhaps, the painting becomes a masterpiece that provides unlimited potential and opportunities for the future.