Bitcoin

How has the COVID-19 pandemic affected the crypto space? The experts answer

Who would have imagined a year ago how different our lives would be in just 12 months? Without a doubt, last November will continue to be an important point in human history – the moment when it all began. Although “patient zero” has not yet been confirmed – if it ever will – We now know that it all started in China on November 17, 2019 when the first patient showed symptoms of a new coronavirus disease called COVID-19, according to government data, according to the South China Morning Post.

In January 2020, the central Chinese city of Wuhan suffered from the massive spread of the COVID-19 epidemic and, according to a publication by The Lancet, “41 hospital patients with laboratory-confirmed cases have been identified”. Just two months later, in March, the World Health Organization declared COVID-19 a global pandemic. One by one, governments around the world closed their national borders, suspended public events and banned gatherings of people. The conversation revealed two terms that were previously rarely used and have now been declared the 2020 words of the year by the British Collins Dictionary: “quarantine” and “social distancing”.

It is difficult to imagine which areas of our lives were not affected by these dramatic and tragic events. with a number of confirmed worldwide cases exceeding 55 million.

How has the COVID-19 pandemic affected the crypto space? The experts answer
How has the COVID-19 pandemic affected the crypto space? The experts answer

Despite everything, the current COVID-19 crisis has also had a positive impact on the world. European conservatism, which has long depended on the traditional financial system, was challenged when the pandemic forced Europeans to switch to cashless payments and cryptocurrencies. Some say that it even cemented the widespread adoption of cryptocurrency and DLT-based trading solutions around the world by changing people’s understanding of money.

Specifically, The COVID-19 outbreak has fueled the Bitcoin Safe-Haven (BTC) narrative as central banks print $ 15 trillion in incentives to mitigate the impact of the pandemic on the global economy. Amid rising inflation rates, people are turning to bitcoin as the next hedge against inflation.

Meanwhile, governments are initiating COVID-19 surveillance programs on behalf of public health and raising serious concerns about data breaches and the centralization that goes with it. Without stopping there, governments have taken another step towards the erosion of civic autonomy by developing central bank digital currencies. These initiatives have been stepped up worldwide due to the COVID-19 crisis. While experts see the solution for the protection of privacy in decentralized technologies, the question of too promising decentralization remains open.

Even so, the coronavirus outbreak has significantly changed the lives of all people and created the new normal that we now live by. But still, Despite all the challenges that we have been facing from an economic, political and social perspective since the beginning of the year, there is no doubt that the pandemic is driving digital innovation and accelerating humanity in technological development for 20 years.

It’s too early to know when it will all end as COVID-19 continues to accelerate. Now, a year after the first case in Wuhan, Cointelegraph reached out to experts in blockchain technology and the crypto room to learn how the coronavirus pandemic has impacted the industry.

What impact did the outbreak of the COVID-19 pandemic have on the crypto space?

Asheesh Birla, CEO of RippleNet:

“COVID-19 exacerbated inequalities for many people who have no or no access to banking, highlighting the gaps in our financial infrastructure where those who have less pay more – on average, the cost of shipping 200 Despite the pandemic, people still need to send money to family members and friends overseas, as a result, remittances have continued to rise in some of the largest corridors. In the corridor between the United States, for example, in Mexico, there has been a significant increase in Remittances, as Mexico received $ 4.02 billion from abroad in March 2020, a 36% increase from March 2019. Ripple can help reduce the cost of remittances by using cryptocurrencies and blockchain technology to cross-border Making payments faster, cheaper and more reliable. As one of the H On the main exchanges in Mexico, the company operates around 10% of all remittance flows from the US to Mexico using Ripple technology, which uses XRP as a bridge currency. At the same time, there is more interest in this area than ever as large companies like PayPal and Square are betting on cryptocurrencies and pushing them into the mainstream world. The validation of these companies has contributed to increased interest in the usefulness of cryptocurrencies and their ability to better serve their businesses and customers. “

Da Hongfei, Founder of Neo, Founder and CEO of Onchain:

“In my view, COVID-19 had no negative impact on the blockchain space – if at all, it led to increased demand for innovation and the introduction of blockchain technology. By exposing the weaknesses of our current paradigm, including COVID- For example, 19 has highlighted the failures of the current centralized supply chain system, highlighting its fragility and lack of agility. Using blockchain technology, we can build a decentralized supply chain that can determine this quickly and then sell products based on the needs of a particular area Blockchain technology can be used to more effectively track and locate cases of infection while protecting patient privacy. In fact, we are already seeing this blockchain change in a time of uncertainty – more and more institutions and people embrace Bitcoin , as it is considered stable and first-class capital in these difficult times. I believe that COVID-19 made clear the need not only for blockchain technology, but also for a truly digital and smart economy. In the future, we need to break away from our current paradigm in order to create a truly digitized and globalized world that has the flexibility, agility and efficiency to thrive and prosper. “

Mike belshe, CEO of BitGo:

“The economic turmoil caused by our pandemic is driving attitudes and interest in digital assets. COVID-19 has greatly accelerated adoption and interest in cryptocurrencies around the world. It is important to note that the efforts companies like us are determined to do. to create a secure and compliant foundation, and allow the influx of new cryptocurrency investors, including large institutional companies such as investment banks and large custodians. Fortunately, we can meet the moment as a result of all of this work. We have put a lot of hard work into building one over the past 10 years invested from the ground up. Before COVID-19, most people didn’t pay as much attention to the economic factors that make Bitcoin relevant. In all honesty, they didn’t have to. If you make a profit on the stock market, you keep what You know and you don’t have to worry. e to learn something new. But now everything has changed with the pandemic: Fiscal policies around the world are causing governments to insane printing money, reducing its value and causing inflation. Investors now understand that they need to be one step ahead. They ask a lot more questions and understand the rationale behind the Bitcoin thesis – that the scarcity of an asset matters. Digital assets are a hedge against inflation and a safe store of value. Investment leaders like Paul Tudor Jones, Stanley Druckemiller and Bill Miller prove that Bitcoin is an important part of any portfolio today. This year has brought a lot of uncertainty, but people are feeling empowered to educate themselves about what to do to get involved with cryptocurrencies. All the building blocks are in place – regulatory compliance, custody, liquidity, portfolio management and wallet technology, and tax tools – providing investors with the tools they need to invest in digital assets. “

Preston Byrne, Partner at Anderson Kill, P.C .:

“The most noticeable impact of the COVID-19 outbreak on cryptocurrencies has been the validation of the cryptocurrency’s core thesis that our societies are fragile and that math, not men, is likely to provide a more solid foundation for the future. Social organization. The trust of virtually all of the great Economies in fiscal and monetary incentives to stay afloat, strengthened and broadened the public perception of the weakness of traditional institutions and fiat money. “Cryptos” are a variety of beliefs and areas These technologies respond in unique ways to the social and business Adapting to the stressors that hit the headlines over the past year, whether it’s hard money, censorship resistance, or secure communication. They talk about “money printers go brr”, the constant exodus of big technologies, or the general social unrest in the cities . “

Tim draper, Venture capitalist and prominent Bitcoin investor:

“Many people trapped in their homes finally took the time to put together a Bitcoin wallet, but the real impact of Covid was that the shutdown was devastating for many families and the government printed $ 13 billion to try I made it clear that you’d rather hold bitcoin than those diluted and diluted dollars. I hope the ‘fiat duty’ now includes ownership of bitcoin as a hedge against the flooding and manipulation of government currencies. “

These quotes have been edited and compressed.

The views, thoughts, and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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