What is the impact of the coronavirus on the cryptocurrency market? How is the Covid-19 pandemic also impacting crypto-mining?
In less than three months, the novel coronavirus (Covid-19) has transformed from just an ordinary viral epidemic into a global pandemic, threatening to cause profound changes that may well change the world as we have known it forever. Now.
Many have already referred to this latest pandemic as “World War III.” Nevertheless, specific measures have been taken. These measures aim to limit the worsening of the situation and avoid bringing the world to a standstill in practically all sectors of activity.
What is the impact of Covid-19 on the global economy?
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Schools, tourism, transport, public, sporting, and electoral events… almost everything is postponed or on hold, inevitably affecting social and economic life. Thousands of cases of contagion and death have already been recorded worldwide. At the mere thought that this pandemic will not disappear anytime soon, the stock markets are experiencing solid jolts by recording new lows that have not been known for years.
The S&P 500 index hit its new “low” in 2008 when the world plunged into a financial crisis. The crypto market is even more volatile and has also seen one of the worst surges. At the end of March 2020, a 6% drop in prices was recorded within 24 hours.
Investors have drastically shifted from “risky” assets to much “safer” assets like gold and oil, which have been on a bullish curve since the pandemic.
What is the impact of Covid-19 on crypto-mining?
With China and South Korea holding over 70% of bitcoin’s mining power (the largest cryptocurrency), it’s easy to tell the massive effect was expected when the virus began to wreak havoc on the world. Asian continent.
Over the past few years, many cryptocurrency mining equipments have been implemented. Current falling prices are hurting the performance of these mining machines. Mining operations are now increasingly reliant on such equipment to balance the new algorithms, which has been rendered inefficient.
Isolation and quarantine have become major causes, as there is less movement to mining farms. Prices continue to fall in defiance of current forecasts, with an overall drop of 15% at the end of March.
Yet promising prospects in the cryptocurrency market.
Despite all the negative aspects of the spread of the coronavirus in all business sectors, it is safe to say that many markets will be able to survive this difficult period and even profit from it. There is no doubt that the shadow of a global recession looms in these uncertain times. Governments around the world should favour authoritarian capitalism to solve these problems.
In the long term, the cryptocurrency market may not be suddenly affected by these upheavals without being completely spared, incredibly shortly.
Nevertheless, the confinement imposed in many countries worldwide could paradoxically generate a bullish effect on the cryptocurrency market, unlike the rest of the stock market, according to financial experts.
While many experts describe the cryptocurrency market as “more than safe,” they also pointed out that it can be identified as a good option for long-term investments as its value continues to grow. Therefore, it will be necessary to check whether these analyses materialize in the coming months and the impact of the Covid-19 crisis on the cryptocurrency market. As the coronavirus (Covid-19) pandemic continues to record more and more cases worldwide, it is lucky he can predict the future of the cryptocurrency market.