Crypto and Covid: Digital Currency In The Time of a Global Pandemic

On March 11, 2020, the World Health Organization declared the novel Covid-19 virus as a global pandemic. As a result, the entire world went into an unprecedented lockdown.

Borders were closed, strict lockdowns were imposed in hard-hit regions, and millions lost their jobs; it felt like a catastrophic event despite the apparent peace. Everything looked fine, except for the fact nothing like this had happened in the last 100 years.

There are still only rough estimates of how much the global economy suffered. And it will take years for economies to recover, and entrepreneurs to rebuild their businesses.

However, despite the prevalent gloom, cryptocurrency set new records — especially bitcoin. In April 2021, bitcoin reached its highest ever value of $63,729.5.

Who would have thought bitcoin would reach its pinnacle during the pandemic? This is what cryptocurrency is all about, a world of endless possibilities.

It has become such a significant part of the global economy that its impact is visible. Let’s see how it has changed perceptions and turned into a secure, profitable investment, as well as easy means for transactions.

With the changing lifestyle due to covid, digital currency is now becoming the future. With the greater popularity of digital currencies in Dubai, it won’t be a hassle to find a Bitcoin shop in Dubai.

Safer than Traditional Banking

During the first wave of the pandemic, banks all over the world were fully or partially closed. It wasn’t safe for dozens of people to gather under a single roof when covid-19 can be easily transmitted within three to six feet distance from an infectious source.

This resulted in more cryptocurrency transactions. Countries, where people could pay or get paid in digital currencies, had no other option but to use cryptocurrency as a source for trading anything.

Bloomberg reported that around 350,000 bitcoin transactions are being conducted worldwide daily.

Common people, too, seem to grasp and approve of the idea of digital currency. The stereotype that digital currency is not safe is gradually fading.

In the future, cryptocurrency will significantly reduce the dominance of banks for transactions. People will be able to carry out transactions without any middleman, paperwork, and hefty transaction fees.

A Safe Haven Asset?

People often compare cryptocurrency with gold, though it’s far from a safe haven asset like gold, for now. But as the future is unfolding, bitcoin in particular, is becoming a reliable investment.

Over the last few months, we have seen bitcoin making new records. It reached its highest ever value in, that too in a pandemic, an indication that it could be considered a safe haven asset in the future. Or even now, if you’re willing to keep your money invested during the dip.

In short, if someone wants to buy in bulk and has the patience to hold on when the graph declines, bitcoin is deemed a safe haven asset.

Flexible & Easy Investment

People these days are quite conscious about where they invest their money. Investment scams are common even in developed countries, so one has to be careful while handing over his hard-earned cash to anyone.

Traditional investment sectors, for instance, real estate, food business, etc., require heavy investments, which no one is willing to spend in such uncertain times.

That’s where cryptocurrency has opened the doors for safe and flexible investment. There’s no restriction on how much you must invest or any doubts over the security of your investment.

Cryptocurrency exchanges let you buy as much as you can and keep your coins safe in your wallet. And most importantly, you don’t need to go anywhere. You can buy coins from the comfort of your home, with a single tap.

A Step Ahead From Traditional Currency

There was a time when people would use gold as a currency to buy commodities. Gradually, the world progressed and paper currency was introduced — every country would have its own national currency. ( It was easier to carry and you could carry as much as you needed at a time)

With cryptocurrency becoming popular, the world has taken a step forward. There’s no need to carry physical currency or any bank card with you when you know you can pay in cryptocurrency as well.

This idea felt like a stretch, or too far from becoming reality in the coming years. However, the pandemic has changed perceptions. Even paper money can transmit coronavirus from an infected person to the other one.

So wallet to wallet transfer is deemed much safer than the exchange of paper money. Because even if you pay via bank, you still have to submit physical money to your bank account.

Conclusion

As visible, the pandemic has changed perceptions. Ideas that were once considered a merry fantasy have turned into reality. The concept of paying via digital currency is one of them. Gradually, we are realizing that paper money can be a liability. It can be duplicated, snatched, manipulated, etc. That’s why digital currency is the future — not far away, but just around the corner!