Covid-19 Has Reshaped The Crypto Industry
Tyler Smith – Crypto Investor
A documentary has been created by cryptocurrency news website, Cointelegraph, depicting reporters approaching leaders of the crypto industry throughout the world. Their purpose was to figure out the impacts of COVID-19 on their businesses and if it affected people who buy and sell crypto.
It is expected that, just like many other businesses, the crypto industry cannot stay unaffected. It is visibly observable that a large proportion of the world’s economy is currently suffering due to the Coronavirus. However, the cryptocurrency industry is organized and functions in such a way that it can manage and survive during such a crisis. Bitcoin itself was created in response to the last financial crisis and so people are still trusting Bitcoin during the pandemic. The underlying protocol is what attracts people to the network as it is censorship proof and decentralized, meaning they can conduct transactions without fear of funds becoming frozen.
Cryptocurrency companies have been able to adapt fast to changes due to the decentralized nature of their blockchains. Many have become remote operations without loss of productivity. These cryptocurrency companies rely heavily on events which the majority over the first quarter have been cancelled or postponed.
Due to COVID-19, many of the financial markets have crashed facing volatility with a huge impact on businesses. While many markets are merely trying to survive, crypto exchanges can profit by the rise in trading volumes and the volatile spikes as people see an opportunity to buy and sell cryptocurrency. Due to increasing uncertainty, Bitcoin can easily attract investors to maintain the value of their money and continue investing.