World Executives Digest| 5 Predictions for Bitcoin and Cryptocurrency after the COVID-19 Pandemic |As you might have noticed, the novel Coronavirus pandemic has had a huge impact on the global economy, affecting every industry and business sector in the world while greatly destabilizing the residential realm as well by reshaping the modern way of life. While the majority of the world is on lockdown and entire industries are experiencing massive financial losses, the question of the survivability of Bitcoin, cryptocurrencies, and mining becomes more prevalent in the online world. There is no denying that the future can’t be predicted with utmost certainty, however, modeling probable causes and scenarios is possible by analyzing current trends and the courses that the market is taking.
What’s also certain is that Bitcoin and cryptocurrencies are more resilient to these global economic shifts precisely because they were made to thrive in the online realm, so we can rule out a possible catastrophic event with a degree of certainty. With that in mind, let’s delve deeper into the five predictions for Bitcoin and cryptos in the post-COVID-19 world.
An opportunity for innovation and progress
Aspiring entrepreneurs and traders in the cryptocurrency industry might think that the COVID-19 pandemic spells nothing but trouble for the future, but experienced entrepreneurs will tell you that every global crisis can be exploited and used as a catalyst for innovation and progress. That’s exactly what business leaders should focus on the months and years to come following the pandemic, by applying Bitcoin and other cryptocurrencies to boost various industries, especially the global healthcare sector that is currently overburdened and vastly underfunded.
The inability of the global healthcare system to battle the spread of the virus aside, there is no denying that the blockchain technology can be applied to improve operational efficiency and data management, particularly in a time like this when international cooperation between healthcare institutions is instrumental in flattening the curve and subduing the pandemic.
The “immunity” of cryptocurrencies
Interestingly, it’s not uncommon to hear experts boasting about the “immunity” of Bitcoin and other cryptocurrencies in the face of a global economic downfall and socio-political shifts. The foundation of this argument lies in the intrinsic decentralized nature of the blockchain technology and the cryptocurrencies traded there, making Bitcoin and its counterparts immune to local, national, or international economic fluctuations – unlike traditional currencies or assets where money value is kept.
For example, almost every investment asset in the world is experiencing a drastic change nowadays, including traditional currencies, real estate, and other investment types, but Bitcoin and other cryptos seem to be maintaining stability. Whereas traditional currency exchange and trading platforms like forex will suffer under the closure of banks and daily trade, cryptos reside solely on digital, decentralized platforms, barring outside influence and ensuring stability and the continuance of trade.
Mining will become more popular
Mining Bitcoin and other popular cryptocurrencies is a full-time profession for some, but for the majority of aspiring traders, it’s a side job or a pastime activity intended to supplement their revenue streams and help one day establish financial independence. Now that many countries around the world are in lockdown, many more aspiring traders will be taking up bitcoin mining in the months to come, simply because they have more free time on their hands and the increasing need to supplement their budget.
With more people entering the playing field, there is no denying that the cryptocurrency market will continue to grow throughout the pandemic and beyond. With a reliable mining rig and plenty of reputable resources to learn from, aspiring crypto traders can easily achieve their goals with minimal financial waste and lower risk.
Bitcoin’s versatility will minimize risk
Speaking of minimizing risk, it’s important to note that even though Bitcoin is not completely immune to financial pressure or the degradation of the global economy in times of crisis, it is not at an increased risk either. Always remember that traditional currencies are governed by national and international policies and banking systems that make them inherently less flexible, versatile, and widely unprepared to adapt to the new needs of a changing market – unlike cryptocurrencies that thrive on innovation and change. Bitcoin and other cryptocurrencies are versatile by nature, and most importantly, they are in full control of the user and the trader, meaning that crypto companies and investors can resume operations as normal without fear of sudden value drops or increased volatility during these uncertain times.
The unlikely and scary scenario
Even though it’s likely that the crypto industry will survive the COVID-19 pandemic virtually unscathed, there are certain dire predictions out there that talk of a vastly different post-coronavirus world. Now that authoritarian governments are using the pandemic to seize power and control every tradable good, there is speculation of a world in which governments start controlling cryptocurrency trade and all operations within the industry. While it is unlikely that authoritarianism can be implemented on a global scale, it’s still important to keep an eye on socio-political shifts in the months and years to come in order to spot and possibly prevent such a scenario.
The COVID-19 pandemic has definitely disrupted the modern business world, the global economy, and the modern way of life. Luckily, though, it seems that Bitcoin and other cryptocurrencies will continue to thrive in the post-coronavirus world.