Will COVID-19 mark a step toward greater crypto adoption in the future?
Through different reports, it came out that there are more than 500,000 cases worldwide and over 24,090 deaths. Due to such drastic situations, different businesses across the world are facing huge losses. This could be seen in the stock market also as it has gone to its lowest till now. Amid this havoc going on in the whole world economy. There might be a bright future for crypto adoption due to COVID-19 across the globe.
Impact of coronavirus on cryptocurrency adoption worldwide
Most of the countries around the world are under severe lockdown to reduce the impact of this pandemic. However, this is a big step towards reducing the spread of the virus. But various businesses around the world are facing dire consequences. This shutdown has resulted in a sharp drop in cash flow across the financial market. Various economies around the world are facing this decline in cash flow. Amidst all this, COVID-19 positively affects cryptocurrency adoption. This decline in cash flow is contributing more to it.
As seen in Venezuela, all the banks across the country were shut down due to the lockdown to stop the spread of the virus. Due to this lockdown, bitcoin trading has seen a great hike in the country. In the past few weeks of lockdown, it has been seen that bitcoin trading has gone above $3.4 million and is still rising.
Not only in Venezuela, but there is also a huge impact on crypto adoption across the whole of South America due to coronavirus. Different countries across the continent have seen an uprise in bitcoin trading. In Peru, there was an increase of over 30 percent in the local bitcoin trading. Similarly in Columbia, there was an upsurge of over 15 percent in local BTC trading.
China using blockchain technology to deal with the COVID-19 outbreak
China is the epicenter of the virus and it has caused huge losses to the country. The entire country has gone under lockdown for a very long time now. Although there is a huge slowdown in the entire financial market, blockchain technology is seeing an uprise in China.
Through local authorities, it came out that blockchain technology is helping them to track and manage medical data more effectively. Different companies across China are helping the authorities to manage health records via blockchain technologies. Not only medical data but other quarantine activities are also being monitored through these blockchain technologies.
Alipay, which is among the leading online information platforms based on blockchain, is also sharing a lot of information related to the coronavirus outbreak. They are releasing information via mobile apps which are helping people to maintain good habits.
Ant Financial, another leading company is also launching an online bid opening system that is again powered by blockchain only. Through this, different enterprises will be able to take an active part in contactless bidding due to the COVID-19 outbreak.
Around 20 new applications have been launched that are based on blockchain technology. These applications have been launched to deal with coronavirus outbreaks across the nation. Even though there is a huge adoption of blockchain technology in China, the crypto market is also facing some major challenges. Different crypto conferences have been delayed due to the outbreak and lockdown. After-sale services by various crypto mining firms have also been delayed due to the same reason.
Final note
Although the outbreak has impacted the whole world severely which has caused a huge downfall in the financial market, the crypto market has also been impacted due to this. But during such a great time of difficulty, it could be seen that the crypto market is emerging as an ultimate solution for most people. Ultimately, there is a bright future for crypto adoption due to COVID-19 as people are moving more toward digital currency and assets.
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