As we all know, the ferocious cloud of the COVID-19 has shadowed the entire planet. People consider strange or impossible things as usual now. The virus has led the global economy to a recession, thus, affecting all the sectors of the economy at once—all the people who come in its way are shattered by it. However, there is one thing that is immune to the coronavirus.
Yes, you may be shocked to hear it!
The only commodity that is immune to thecoronavirus is the cryptocurrency. People organize digital assets or cryptocurrency as aledger in digital databases. The cryptocurrency market involves exchanging such cryptocurrencies. Sturdy and robust cryptography maintains the security of this digital money.
Nowadays, cryptocurrency has even become a mode of payment or transactions. There are a few freelance job portals that offer to pay the freelancers in cryptocurrencies because it’s an instant settlement, and you don’t have to wait for the money to get transferred in your bank account!
Let us have a glimpse of the various facts that explain the importance of cryptocurrencies. They are a profitable investment during this outbreak because of the following reasons.
Cryptocurrency Outperformed The Other Assets
The novel coronavirus is hitting all the economy segments. However, the cryptocurrency has remained relatively untouched by the brutal wave of the corona and has outperformed the other assets like stocks, commodities, and bonds.
The decentralized nature of the cryptocurrencies makes them a non-correlated asset. We can verify it from the fact that the companies dealing inBitcoins or Blockchain are doing great by remote working.
The following information exhibits the exceptional nature of digital cash. Instead of the halving buildup, bitcoin gained $8406.00 in March. This data was brought forward by Bloomberg, which also stated that the currency gained as much as 8.7%.
According to the global strength indicator, the cryptocurrency raised above the $8000 mark. And hence, it has entered the threshold of overbought territory. LiteCoin and Bitcoin Cash prices expanded at a rate of 6.5%.
The Advantage Over The Gaudy Metal- Gold
Since ancient times, people consider gold to be a traditional asset, and a sense of security is attached to it. This is because no matter how many fluctuations occur in price, its value has never degraded to 0. Therefore, unlikeFiat currencies, people consider it to be a haven.
However, the 21st century has turned down the tables. A crisis often tarnishes the value of gold. It is always affected by the problems related to inflation or liquidity. The Great Depression of 1933 even unblemished the gaudy metal.
So, the top-performing cryptocurrencies take advantage of this situation during an epidemic. The cryptocurrency like the Bitcoin proves to be securer and effectual in the crisis. This is because the trading of gaudy metal gold is affected by the transport sector and the other sectors of the economy. Henceforth, the supply disruptions and logistics feign considerable damage to this industry.
On the other hand, such attributes do not affect the currency. These attributes play a crucial role during a global outbreak where the lockdowns have imposed restrictions on the movement.
Since the past years, people have fabricated different types of equipment for crypto mining. But due to the low prices of the cryptocurrencies, people had truncated the use of the mining tools and equipment.
On the contrary, presently, due to thecoronavirus's dispersal and the imposition of the lockdowns, the mining farms have gained popularity. The reason is that mining farms are small and require less movement. Thus, to achieve a balanced algorithm, crypto mining tools and pieces of equipment are used in the mining farms.
The cryptocurrencies are available at a lower price range during the pandemic. But due to the enhanced use of the crypto mining tools and pieces of equipment, the digital assets will be available at an augmented price in the future.
According to research, the coronavirus will not influence the cryptocurrency market. Various researchers have even termed the Bitcoin as a “beyond safe” option for investment. Due to theBitcoin halving, the value of the Bitcoins will heighten over time.
Strong Immunity Against The COVID-19
The widespread of the coronavirus has affected all sectors of society. The companies and factories have halted their operations to evade the total variable costs. Still, the digital currency orcryptocurrencies are at an advantage. The supply chain disruptions have not fabricated any harmful effect on the cryptocurrency.
Nevertheless, the current market turmoil has heightened the usage of digital cash. This is because the worldwide lockdowns have imposed restrictions on traveling and have bolstered work from home opportunities.
To prove the immunity of cryptocurrencies, deVere Group conducted research. It stated that digital money is safer due to remote working conditions. Moreover, it trims the risk associated with handling the virus-infected physical currency. Let us sight some more useful data to prove this fact.
According to research by Nexo's analyst-
Bitcoin halving can bolster the price of bitcoin. The cost can even surpass the level of $50,000 alone in 2020.
The researchers at the Kraken crypto exchange platform also researched that the currency’s price can surpass the $3,50,000 mark by 2045. The augmentation would be because the cryptocurrency is a perfect alternative to Fiat currencies and precious metals.
Colossal wealth transfer can happen in the upcoming decades due to the unlimited potential of this digital asset. So this is why it's the best time to invest in cryptocurrency.