How Coronavirus Has Affected Cryptocurrencies

The type of coronavirus called Covid-19 that was discovered in the city of Wuhan, located in the province of Hubei in China, caused social and financial panic during the last months of the year 2019. Although the country has not yet explained, the origin of the virus and the consequences that it would bring, the health system and commercial activities have been really affected worldwide.

With social distancing, most financial systems have been paralyzed, directly affecting commercial activities related to the world of cryptocurrencies. Digital currencies suffered big declines due to lower rate values in the markets.

Bitcoin is one of the main currencies of the virtual age most affected as a result of the economic crisis of the pandemic. With a drop of 48.10% in relation to its value, it obtained a price of just $ 6,285, which would be equivalent to a sum of 5,742 euros, a figure that is widely different with the average value of $ 20,089 for 2017.

Litecoin, Primecoin and Ripple also integrate the wide offer of coins in digital format. They have a crypto base to protect their security, but Bitcoin is one of the most demanded in the market. With 67% of the value of cryptocurrencies, it reached $ 10,000 during the last three months of 2020, a premature but frequent recovery after the financial chaos as a result of the coronavirus and after being affected by the great fall in cryptocurrencies. in the year 2017.

Economic growth in 2020: an unreached goal
According to the forecast of John McAfee, an eccentric millionaire, English programmer and creator of the McAfee antivirus system, he considered in 2018 that the rates referred to Bitcoin would obtain at least the amount of $ 1 million as a result of the exchange and commercial distribution of cryptocurrency. This was one of the objectives that Bitcoin could not achieve because as of April 1, 2020, the price barely reached $ 6,285.

Continuing in the market: the goal of cryptocurrencies
The brutal low listing-related rates in the small trading trajectory have negatively impacted the image and economic development of these virtual currency classes.Although Bitcoin’s subsequent recovery fell by 20% in value, it is a truly young market that can tolerate and create strategies to catch customers despite global crises.

The high volatility that influences cryptocurrencies is a common factor in new digital economic systems in the market. Unlike stock exchanges that study the impact of buying and selling of the most important financial systems in the world, cryptocurrencies do not have capsules that protect and safeguard assets.

The “new currencies” have levels of work and innovation that are fully adaptable to digital financial exchange. Despite the economic, social and political crises, they have economic roadmaps and plans led by high qualified professionals capable of designing commercial systems completely dependent on traditional banking entities, during the times when millions of companies believe that their job stability falls over traditional public or private financial institutions.

Bitcoin and the different digital currencies have one of the greatest challenges in the world: creating, incentivizing and managing virtual financial systems that offer the greatest security and confidence to small and medium-sized companies or individuals. All this in order to direct and safeguard financial assets from work activities, without depending solely on expectations from federal entities or banks that guard their economic resources.

It is not yet known what general impact the Coronavirus Pandemic may have in the future in cryptocurrencies. The truth is that this world is already suffering from the recession, we will have to be prepared to face a change in this economic area.