Img source:

How Coronavirus is Affecting Cryptocurrency – 2024 Tips

The entire world (or at least the biggest part of it) is in quarantine. People are not allowed to go out for the biggest part of the day. The reason why we are all sitting and home and surfing the Internet for the whole day is coronavirus. We believe that you have read millions of theories about this virus. However, we are not here to analyze that. Here we want to analyze how coronavirus affects the economy of the entire world.

Only a small number of industries have the chance to make some profit. As we said, people are not allowed to go out. For every entrepreneur, this means that potential customers won’t ask for the service or buy a product. We do not know exactly how long everything will last. Still, it seems it will have a huge impact on the profits of most of the businesses.

So, Did Coronavirus affect Cryptocurrency?

Img source:

The shortest answer to this question is – “Yes, it does.” The coronavirus influences literally everything in the world. That’s why it doesn’t need to surprise us why the cryptocurrency world is not skipped.

Unfortunately, the influence that this virus has on Bitcoin and other currencies is negative. It is not a secret that this market was refreshed until a couple of months ago. The price of most popular cryptocurrencies started to grow slowly. All the experts believed it will get back to the value that they had a couple of years ago. This especially counts for the most popular cryptocurrency – Bitcoin.

However, no one expected that something like this would happen. It was a surprise for doctors, investors, economy experts, etc. As we said, many entrepreneurs around the world had to look for ways to make money. That’s why many investors started to sell cryptocurrency for a lesser price. We are not here to say if this was a paranoid reaction or not. It is simply a fact that all new potential crypto investors have to accept.

All Crypto Conferences Are Now Cancelled

Img source:

Crypto conferences were events that were quite important for the crypto world. However, the restrictions that were made around the world made organizers cancel them all. For instance, have you ever heard about the TOKEN2049? It is one of the conferences that was planned to be organized in Hong Kong around the middle of March. There was also a Hong Kong Blockchain Week that was planned to happen in March as well. However, this event was moved for September. We truly hope that things in the world are going to fix until then.

Travel Restrictions Affected the Value of Cryptocurrencies

Believe it or not, the effect of coronavirus on this industry was visible from the first moment. Things started to change immediately after the pandemic was announced in Wuhan. However, the bigger problems started when the virus started to spread in Europe and America. Keep in mind that the United States of America is the place where most of the investors are located. That is the reason why the value of the crypto started to fall.

Let’s use February 26 as an example. Believe it or not, this was one of the worst days in Bitcoin history. In only one day, the value of the Bitcoin went down for around 6%. This happened because around 150 million dollars were liquidated at BitMEX.

How is Coinbase Responding?

Img source:

We believe that investors and people interested in crypto would want to know more about the leading cryptocurrency exchange company. This company came up with a multi-stage disease response strategy. They had this company policy even before this pandemic happened. They had some instructions for their employees what to do in cases like this. The company itself also has an assessment system of threat that will work on a case-to-case basis.

The biggest problem of all happened in Japan. In that country, the employees of this company are affected by a coronavirus.

So, What Now? Should I Invest in Cryptocurrency?

The answer to this question is not as simple as the previous ones. At the same moment, the answers yes and no would be correct. As we said, we do not know exactly when the crisis is going to end. However, we do know some things that might give us some smart directions.

As we said, the value of every crypto is falling together with the entire economic system in the entire globe. This is bad news for people that invested a lot of money in BTC previously. Still, it might be good news for people that plan to invest in it soon. The lesser price means that you can get coins of any cryptocurrency without spending a fortune. Recently, the value of Bitcoin was around 10.500 dollars. Logically, not everyone in the world was able to afford to invest in this cryptocurrency. While we write this article, the value of the BTC is around 7246. The price reduction is common for all cryptocurrency. For instance, the value of Litecoin is currently 45.46 dollars.

So, Will Value Continue to Fall?

Img source:

Our answer to this question is – “It probably will”. Still, this doesn’t mean that the cryptocurrency world is destroyed. On the contrary, this is a great moment to invest in it. However, we suggest new investors remain patient and wait for the price to fall more. In that way, they will have the chance to save more money.

The things around Coronavirus are not going to last forever. When everything ends, the lives of the people are going to continue normally. This also means that the economy is going to continue with progress. It might be slower, but most of the countries will invest a lot of effort to get back to the previous successes.

The situation in the world will also affect the cryptocurrency world. There are big chances that cryptocurrencies will get the value that they previously had and continue growing. However, this doesn’t mean you should make the first steps in this industry without proper education. There are websites like that you should visit. You can network with other traders and improve your knowledge about this industry. Knowing how to recognize a good opportunity is especially important at this moment.

About Ronald Lamumbe