The movies we watch with excitement push us into a world of fantasies. After watching these movies, we tend to believe that humans can do anything. And if they can’t, there are super heroes to take care of the matters, right? Well, all of this sounds great in movies, but the reality is completely the opposite. All these fantasies were brought to an end when we were struck by COVID-19 pandemic which showed how helpless we are and how un-prepared we were. The pandemic compelled us to remain in our houses. Schools and parks were closed, businesses were put at stand-still, and economic disruption was evident all around the world. The US was no exception either.
COVID-19, Businesses, and Cryptocurrencies
However, what survived during peak months of COVID-19 was the online retail and trading markets whose businesses were not just running but flourishing. Though the prices have gone down for various cryptocurrencies including the mighty Bitcoin, yet it will not be wrong to suggest a huge surge in the number of investors. Since January 2020 until this day, many have invested heavily in the online markets. According to the latest survey, it shows that during the time of pandemic there has been phenomenal growth in online retail marketing. The report survey further suggested that approximately US$ 107 billion has been earned by online merchants. For the initial eight months of the pandemic, online market sales went as high as US$ 497 billion.
While the traditional markets were closed, which helped online retail markets to flourish, the pandemic helped cryptocurrencies by increasing the number of investors. Nowhere to go so nowhere to invest. This led the investors to rethink their investing strategies in the shape of finding alternatives, which they found in the shape of cryptocurrencies.
The Effects of COVID-19 on Cryptocurrencies
During the pandemic, it was obvious that a large number of investors had become interested in buying cryptocurrencies and crypto-assets. This is because the traditional markets got severely damaged by the effects of COVID-19. Also, the cryptocurrency industry took a hit, which led to considerable reduction in the prices of most of the digital currencies. Some of the badly affected were Bitcoin and Ethereum, the biggest and second biggest cryptocurrencies respectively. But the number of crypto owners doubled. People started to buy cryptocurrencies because they were available in rather cheaper prices in an effort that when the pandemic will end, the prices will definitely go up and they will be able to fetch more profits.
Similarly, the latest trend of decentralized finance, which is most commonly known as “DeFi protocols” has also immensely increase the number of investors in the crypto world and helped cryptocurrency to survive and remain in balance during the peak months of the pandemic. Although the concept of DeFi was well introduced some three years back, and is on trending since then, but a huge surge has been seen during the initial eight months of this year. DeFi was making headlines everywhere and it felt like the DeFi exploded in the year 2020. However, still people argue that howsoever lucrative it may sound considering its growth over the year, yet the retail interest of DeFi is remains at the lowest. However DeFi is currently in trending and for the time being it seems that there is no stopping of it because more and more people are getting interested in it.
So the question now arises, “What is the future of cryptocurrency after the pandemic?” There is no denial that cryptocurrencies showed that they have a place within the financial industry. Even in the circumstances that were not suitable for the traditional markets, it had the ability not only to survive but also sustain. Even though its prices have gone down, the number of investors has increased exceptionally. This will, of course, guarantee handsome profits in the long run to those who have treated an adversity as an opportunity.