The shockwave of the COVID 19 bomb was massive and have severely damage the financial market all over the world. Cryptocurrency trade was also affected. The price of every Cryptocurrency saw negative graphs. During the quarantine period, people were hardly dealing in cryptocurrencies. This makes the price evaluation of the cryptocurrency drop.
Now the countries are ending their lockdown period and the trade market have started performing normally. So, you can hope that Cryptocurrency might get back its former glory back.
Did COVID 19 outbreak really affect Cryptocurrency?
COVID 19 was not directly responsible for the drop in price of the Cryptocurrency. However, it sure has affected it indirectly. After the outbreak of the COVID 19, traders and investor started liquidating their assets to safeguard them from accruing any further loss. This includes Cryptocurrency assets as well. To cope up with the entire liquidity request, the brokers had to sell the assets.
During the starting of the quarantine period, the price of the bitcoin fell below $4000 but it has already been more than 60 days. And the situation is now under control. The trade market is working properly. At the time of writing the price of the Bitcoin was well over $9000. It might still take few more months to soar back again. For the time being you can be sure of one thing that the price of the Cryptocurrency will be on a positive curve.
Are Cryptocurrencies being safer assets to invest in?
Well if you compare the gold and silver asset with the Crypto asset, you will find similarity in their price frequency graph. However, with only this piece of information, you cannot say that the Cryptocurrencies have become safer assets. This stability that you can see in the current market is only momentarily.
There are considering the cryptocurrency to be a replacement of the fiat currency. But you must not forget that there are no physical assets supporting Cryptocurrencies. So, investing in them is more of a gamble than sure profit investment.
As of now there are no evidences that can fortify that Cryptocurrencies can replace the fiat currency However, future is a different story all together.
Many Nations have lifted ban on Cryptocurrencies
When the fiat currencies all around the world were not able to handle the COVID 19 crisis, there were only the cryptocurrency, who in spite of price drops were performing better than fiat currencies. During this quarantine period, trade with fiat currency was totally stopped. But Cryptocurrency trade was performing well. This made the nations realize the full potential of the Cryptocurrencies.
There are many nations who lifted ban on the use of Cryptocurrencies. This was done to encourage the Crypto traders to start with their trade. This was also done to safe the economy of the countries.
What future has in store for Cryptocurrencies?
Outbreak of the COVID 19 has just added new problem with the other problems related to Cryptocurrencies. Traders and Investors were already having problem with the regulation and liquidation of the Cryptocurrencies. But with the outbreak of the COVID 19 was added to the list of worries.
However, the current state of market is showing good sign, as new companies are emerging with interesting products that you can deal with Cryptocurrencies. the way Cryptocurrencies are used all over the world, you can say that they are like one of the mainstream assets. We can just wait and see what Cryptocurrency will look like few years down the line.
Outbreak of the COVID 19 has affected the trade market in the positive way. Amidst of quarantine, when the fiat currency was of no use, Cryptocurrency was able to dominant the market and increase trust among the people. This is the reason why traders are now trusting customer support for bitcoin trading.