Impact of Coronavirus in Cryptocurrency Sector and ways it is contributing to the stock market in these tough times

The Coronavirus has not only influenced the people globally but also the share markets in countries like the US, India, China, and Europe. The market trends of Bitcoins in mid-February peaked at $10,367.53 million, dropping to $4,994.70 million in mid-march. Nate Martin, a Bitcoin expert, says that this sharp rise and fall is not due to the pandemic and the market shares. 

Unlike fiat currencies and assets, the fixed number of Bitcoins has the tendency to preserve their value. So in an economic crisis like Coronavirus, the cryptocurrency exchange will suffer only to a minimal extent. It can be said that there will be no impact on crypto assets. It is one of the main reasons for the extensive use of P2P cryptocurrency exchange script across the world.

Experts say that cryptocurrency is one of the safest investments for business people exploring the safest investment alternative during these economically turbulent times.

Benefits of investing in Cryptocurrency Exchange script:

• Investment potential

Investments like digital currencies represent the future of investment and a whole new assessment class. Bitcoin and other mainstream currencies are gaining global interest and support. Every new merchant is adopting these digital currencies as a mode of payment. New financial services offer cryptocurrency products that have long term viability. 

• Portfolio diversification

Investors need to invest in broad sets of assets across multiple asset classes to have truly diversified portfolios. By doing this, investors reduce the risk that occurs during a financial crisis. Cryptocurrencies are new trending investments all around the world. Many investors are choosing cryptocurrencies for the benefits it offers.

• Security

The main reason behind investors investing in cryptocurrencies is that Bitcoin can bypass the banking system, and also central banks cannot devalue the digital currencies. Apart from that, it allows both investors and users to convert funds to digital currencies. Investors can make huge investments and transactions using cryptocurrency exchange script PHP.

• Convenience

Digital currencies are going to occupy the majority of future transactions, as these are contactless payment systems. Their capability to adapt to the needs of consumers and investors will ensure that cryptocurrencies will only continue to gain popularity in the coming years.

Impact of Coronavirus on Bitcoin and cryptocurrency sector

• “Since the Coronavirus outbreak, the demand for cryptocurrencies and other equity markets have increased”, says  Sankalp Shangari, a renowned angel investor who works closely with Fintech firms.
• During the mid of March, the price of Bitcoin fell below $4000. This is when the S&P index in the US saw a steep fall.
• The reason for this is that many investors have margin calls in Equity that have to be compensated by liquidating Bitcoin and other assets into cash to meet those margins elsewhere.
• By April first week, the price has come up to $7000, and experts say it is going to be a while to witness a price hike like this.
• Unlike gold and silver markets, the Bitcoin exchange script market is far from safe. The COVID-19 has led to frequent fluctuations in the economy of the digital currency sector.
• In the current situation, people want cash and liquid assets, and they are not looking for illiquid bonds, let alone cryptocurrency.
• On the positive side, the governments worldwide are taking up bold measures to curb the impact on the digital currencies sector.

Ways by which cryptocurrencies are supporting people across the globe

• Corona relief campaigns, Red Cross bitcoin fundraiser, and investment funds are some of the coronavirus relief initiatives.
• A blockchain initiated platform, Binance charity started a $5 million relief campaign.
• ‘Crypto Against COVID’ raised 33 donations, which added to an amount of 187.0232 BTC as of last week of March.
•  Binance is contributing to the relief fund by raising contributions to $1 million. Binance tweeted that “Your $10 donation becomes $20, fight coronavirus worldwide, starting with Italy, the USA, Spain, and Germany.”
• In addition to that, the company donated $1 for every retweet with #CryptoAgainstcovid post has added to the donated amount of $1 million in a week.
• Italian Redcross fundraising reached its goal of raising $10,000 as of March 15 for the COVID-19 cause.

Conclusion:

Cryptocurrency is stable even when all the other sectors are witnessing a downfall. From this, we can understand that it would be wise to invest in these digital currencies. Business owners can build their white label cryptocurrency exchange script in no time, and act as a mediator between users and investors. Make sure to acquire digital currency clone apps from reputed companies like Appdupe for your business.

Author

Marketing is my soul mate and writing is my side kick. Using my writing skills to share the knowledge of app development and upcoming technologies.