Crypto in the Period of COVID19 Crisis
Your summer plans for this year could probably be hampered by the COVID19 pandemic, as no one is sure when the virus will end. The crisis has brought the travel and tourism industry to a near-standstill, as various countries have locked down their borders.
The virus has affected economies all over the world and unsettled life in unbelievable ways. It is undeniable that the post-COVID19 era will be different from the pre-COVID19. However, at some point, businesses will resume their normal operations and travelling, schooling, and other social activities will gain life again.
In the middle of these major economic and social changes and global financial insecurities, you might be wondering- what is happening with crypto?
This is the opportune moment to diversify your investments
A wobbly market situation triggered by the current pandemic might not seem like a good time for crypto investments. This is a period when even those who invested in crypto for five years, might be tempted to sell and own more fiat in their pockets.
However, this would actually be an awful mistake. In moments of financial insecurity, the best way to attain some level of financial security is by diversifying your investments. This is the right moment to purchase cryptocurrency or even invest in a bitcoin mining rig and start your cryptocurrency journey.
The value of bitcoin
The COVID19 virus has caused an extraordinary human and health crisis. The measures needed to combat the virus have led to an economic downturn. The latest news from the Global Financial Stability Report indicates that the traditional financial system has already experienced a significant impact.
The COVID19 panic has caused traditional markets to crash, with the biggest stock market tumble since the 2008 crisis. Nevertheless, even alternative assets, such as Gold, the go-to haven asset that endured the test of time, fell more than 10% this year.
Cryptocurrency scammers are declining
According to Chainalysis' recent report, 33% of crypto scammers' income has been whipped out during the crisis. From 13th to 31st March, the total amount sent to cryptocurrency scams daily declined by 61%. In the meantime, some of it may have recovered, but the overall values remain lower than before.
The decline in crypto scammers makes crypto investing a less hostile environment, as a lot of sharks are now dead or weakened.