{"id":23859,"date":"2020-08-24T15:27:29","date_gmt":"2020-08-24T09:57:29","guid":{"rendered":"https:\/\/www.the-next-tech.com\/?p=23859"},"modified":"2020-08-24T16:54:39","modified_gmt":"2020-08-24T11:24:39","slug":"how-covid-19-is-reshaping-the-crypto-industry","status":"publish","type":"post","link":"https:\/\/www.the-next-tech.com\/blockchain-technology\/how-covid-19-is-reshaping-the-crypto-industry\/","title":{"rendered":"How COVID-19 is Reshaping the Crypto Industry"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">What started as a pandemic in China soon became a worldwide pandemic. Not only does COVID-19 affect our everyday lives but it\u2019s also changing the world of trading. <\/p>\n<p>The prices of everything from stock to gold are rapidly changing and it looks like this will go on. Many traders are wondering how COVID-19 affects crypto.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The impact of the pandemic on digital currencies is greater than you might think and it\u2019s safe to say that it\u2019s reshaping the crypto industry. But how exactly is the crypto industry changing? Read on to find out.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Crypto is becoming the new gold<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you\u2019re a trader, you know how valuable gold is. If you\u2019re not one, you might\u2019ve still heard that traders and investors use it to store their wealth. This has been going on for centuries and gold is still the most popular instrument for portfolio diversification. However, the COVID-19 pandemic is introducing the new rules and gold may no longer be as effective as it once was.<\/span><br \/>\n<!-- Home page 728x90 --><br \/>\n<ins class=\"adsbygoogle\"\nstyle=\"display:inline-block;width:728px;height:90px\"\ndata-ad-client=\"ca-pub-9864771813712812\"\ndata-ad-slot=\"3152971286\"><\/ins><br \/>\n<script>\n(adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><\/p>\n<p><span style=\"font-weight: 400;\">When coronavirus first broke out, traders started panic-buying gold because they knew their stocks will lose value. Soon, borders were shut down, and transporting gold became impossible. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Logistics became a huge issue and gold started losing value. When this happened, traders turned towards the \u201cnew gold\u201d \u2013 digital currencies. Just think about it. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you <\/span><span style=\"font-weight: 400;\">buy digital currency<\/span><span style=\"font-weight: 400;\">, it becomes yours as soon as you click the button. This means the pandemic can\u2019t stop you from investing and <a href=\"https:\/\/www.the-next-tech.com\/blockchain-technology\/whats-future-of-cryptocurrency\/\">trading with cryptocurrencies<\/a>.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Traders have learned a valuable lesson during the pandemic and they\u2019ll start buying digital currencies even more in the future. They want their investments to be as safe as possible, and at the moment, that\u2019s exactly what digital currencies are all about.<\/span><br \/>\n<span class=\"seethis_lik\"><span>Also read:<\/span> <a href=\"https:\/\/www.the-next-tech.com\/top-10\/2020s-top-10-business-process-management-software\/\">2021\u2019s Top 10 Business Process Management Software<\/a><\/span>\n<h2><span style=\"font-weight: 400;\">The value of crypto went down as expected<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s impossible for the prices to stay the same during a pandemic like the one we\u2019re facing in 2020. Trading became even more difficult and some traders were skeptical about buying crypto. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Why? Well, over 70 percent of the world\u2019s mining power is located in China and South Korea. Given the fact that the pandemic broke out in Asia, their fear was natural. The good news is that they weren\u2019t completely right.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sure, prices of crypto went down but so did all other prices. The nature of the industry is such that miners can do most of their work from home. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The companies that mine these currencies opted for the right approach and the pandemic didn\u2019t stop them from operating. As a result, the drop in value was minimal, and investing in crypto still makes a lot of sense.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">What people are now wondering is what will happen with crypto in the future. Buying these currencies is safe at the moment, but will it be the same in the next few months? <\/span><\/p>\n<p><span style=\"font-weight: 400;\">All prices are going down and that\u2019s something we\u2019ll just have to get used to. However, buying crypto is still a good idea and the pandemic shouldn\u2019t stop you from doing it.<\/span><\/p>\n<p><img class=\"aligncenter\" src=\"https:\/\/i.imgur.com\/fqYxdhD.jpg\" alt=\"How COVID-19 Is Reshaping the Crypto Industry\" \/><\/p>\n<h2><span style=\"font-weight: 400;\">Buying the \u201cright\u201d currency is critical<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s obvious that the pandemic didn\u2019t have the same impact on every digital currency out there. It all comes down to how the companies that sell them reacted to COVID-19. Not all of them took the same approach and some of them did better than others.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There\u2019s hardly a better example of how some currencies performed better than Monero. This cryptocurrency saw an enormous 23.7 jump during the pandemic. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Traders who took their chances with Monero did well and they\u2019ll continue to search for the ones worth investing in. On the other hand, some currencies suffered a lot because of COVID-19. You probably already know that Facebook\u2019s Libra was scheduled for release in 2020. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">With the way things are at the moment, it looks like we won\u2019t see Libra in action until 2021. This may change some traders\u2019 plans and hurt their financial situation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Because of this trend, it\u2019s more important than ever to do your research when buying digital currencies. If you browse the web, you\u2019ll see that another currency that\u2019s doing great is Ripple. If you\u2019ve never used it before, learn everything there\u2019s to <\/span><a href=\"https:\/\/www.asktraders.com\/learn-to-trade\/crypto-trading\/how-to-buy-ripple\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">know how to buy Ripple<\/span><\/a><span style=\"font-weight: 400;\"> and add it to your digital wallet.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Banks\u2019 view of digital currencies will change<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Cryptocurrencies have been around for quite some time but banks still aren\u2019t keen on buying it. Some banks wanted to do it but regulators weren\u2019t attracted by the idea of buying crypto. In Germany, over forty banks tried to get a crypto custodian license but have failed to do so.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The reason why banks still don\u2019t hold crypto is that it\u2019s quite different from the way they usually do things. It\u2019s common for banks to rely on mathematics and this approach is often the right one. However, during a pandemic such as the COVID-19 one, mathematics doesn\u2019t apply the way it usually does. In situations like this, banks need scarce assets they can hold on to. Enter crypto.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The pandemic has the potential to change the way banks see crypto and start buying it. Instead of storing gold, banks will start to hold the \u201cnew gold\u201d or <\/span><a href=\"https:\/\/www.coindesk.com\/lessons-from-the-first-digital-gold-boom\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">\u201cdigital gold\u201d as some call it<\/span><\/a><span style=\"font-weight: 400;\">. This is huge news for the crypto industry and traders should keep a close eye on what\u2019s going on.<\/span><\/p>\n<p><img class=\"aligncenter\" src=\"https:\/\/i.imgur.com\/PkoD05F.jpg\" alt=\"How COVID-19 Is Reshaping the Crypto Industry\" \/><br \/>\n<span class=\"seethis_lik\"><span>Also read:<\/span> <a href=\"https:\/\/www.the-next-tech.com\/top-10\/10-top-android-apps-for-personal-finances\/\">10 Top Android Apps For Personal Finances<\/a><\/span>\n<h2><span style=\"font-weight: 400;\">Conclusion<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There\u2019s no doubt the COVID-19 pandemic is one of the biggest disasters the modern world has ever faced. While it will most certainly affect the economy, <a href=\"https:\/\/www.the-next-tech.com\/future\/latest-cryptocurrency-trends-for-2020\/\">buying digital currencies<\/a> is still a great idea. In fact, the crypto industry is one of a few industries that will do very well during the pandemic.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another thing to have in mind is that crypto is closely related to technology. Technology will continue to evolve after the pandemic and these currencies might reshape the entire world. They might even take the throne and push \u201ctraditional\u201d currencies to the side.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One thing\u2019s for sure \u2013 now the perfect time to buy crypto and traders shouldn\u2019t let COVID-19 stop them from doing it.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What started as a pandemic in China soon became a worldwide pandemic. Not only does COVID-19 affect our everyday lives<\/p>\n","protected":false},"author":522,"featured_media":26164,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[135],"tags":[933,1626,2155,2154],"_links":{"self":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts\/23859"}],"collection":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/users\/522"}],"replies":[{"embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/comments?post=23859"}],"version-history":[{"count":8,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts\/23859\/revisions"}],"predecessor-version":[{"id":26232,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts\/23859\/revisions\/26232"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/media\/26164"}],"wp:attachment":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/media?parent=23859"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/categories?post=23859"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/tags?post=23859"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}