Tech

How Cryptocurrency Is Growing in the Aftermath of Coronavirus

By Staff Reporter , Aug 14, 2020 09:35 AM EDT
(Photo : pixabay)

Most of the long-term investors are now going through a tough time. Almost every industry is facing a huge downturn due to the coronavirus pandemic. However, some of the industries are performing well even during the disaster. To deal with the disaster, investors are looking for alternative investment options. 

In recent years, cryptocurrencies have gained the trust of many traditional investors. And the digital currencies have also become one of the major investment options for many investors. If you are not sure whether to invest in cryptocurrencies, then read on to know how cryptocurrency is growing in this pandemic situation. 

Movement of Investors from Traditional Investment to Crypto Investment

Traditionally, investing refers to the stock market. The majority of investors consider that investment means investing in the shares of companies. However, with the inception of digital currencies, people started investing in cryptocurrencies. 

After bitcoin's success, the number of investors has highly increased in the crypto space. In 2017, when the value of bitcoin increased from $1000 to nearly $17000, the percentage of crypto investors is growing every year. 

Moreover, due to the coronavirus pandemic investors are looking for alternative investment options. And cryptocurrencies are the best alternative investment option, so the value of cryptocurrency growing. As a greater number of investors are shifting their major percentage of capital from traditional investment to crypto investment, the value of cryptocurrencies is increasing. 

High Demand for Blockchain Technology 

The underlying technology blockchain has a high demand and it will bring a revolution in the business world soon. As the demand for blockchain is increasing, the value of cryptocurrencies is also increasing.  

Blockchain is now used in every industry starting from finance to healthcare and supply chain. Blockchain is a decentralized distributed ledger that allows users to make transactions without the help of any central body. This technology uses cryptographic security features that can't be modified or altered. So banks and financial institutions are now adopting blockchain technology for their financial transactions. 

Due to the pandemic, schools and educational institutions are closed so online education has become the primary mode of education. Many ed-tech companies are now focusing to adopt blockchain technology to provide a more personalized education system to learners. This shows that blockchain technology will have high-demand in the education sector too. 

Moreover, blockchain is used in smart contracts which simplifies the legal agreements between businesses with the help of a computer program. Smart contracts are used in financial agreements, supply chains, and logistic industry. 

The demand for blockchain is a clear indication of the growth of value in cryptocurrencies. Because every blockchain has a digital token to make financial transactions. This is a major reason for which the value of cryptocurrencies is growing even after the pandemic. 

Cryptocurrency is The Future of Money

According to many financial experts, cryptocurrency is going to be the future of money. Due to this reason, people are investing more in cryptocurrencies. The main difference between cryptocurrencies and traditional currencies is the supply. The supply is constant in the case of digital currencies whereas traditional currencies can be manipulated by the government. 

Major Global Companies are Involved in Cryptocurrencies

Another reason for the growth of the value of cryptocurrencies is that major global companies are now involved in cryptocurrencies. Recently, the social media giant Facebook has launched Libra a digital token created by Libra association. Earlier, IBM, Microsoft, Walmart are also supporters of cryptocurrencies and blockchain technology. All of these companies are the most successful companies in their domain. As these companies are getting involved in the crypto space the demand for cryptocurrency is increasing. 

Final Words

All of the above factors show that the value of cryptocurrency is growing despite the pandemic. If you want to invest in cryptocurrencies, this is the right time to invest. For more information on investment in cryptocurrencies, you can visit profit secret

However, you need to consider the crypto assets as a speculative investment option. Because there are many uncertainties such as legal restrictions, fraudsters, and other risks associated with cryptos. So, you need to be very careful while you decide to invest in digital currencies. Make sure you clearly understand the risk associated with the crypto market before investing. If you have any queries about the crypto market then ask in the comment sections. 

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