Post pandemic; what becomes of the crypto space?

avatar

covid195205245_1280.jpg
Source

The year 2020 will surely go down in history as one the most notable years of the twenty-first (21st) century and as well one of the toughest times in human history. What began as a ‘mysterious flu’ affecting a very little number of people grew into a global nightmare. Crashing the economy, bringing a halt to social activities, filling the health centers with patients and claiming an unbelievable number of lives.

The coronavirus pandemic has continued to wreak havoc worldwide with most human activities affected negatively. The world continues to stay in the dark. Efforts by the health system and the government are geared towards controlling the spread and levelling the infection curve while the pharmaceuticals seek a cure.

stockexchange4878214_1280.jpg
Source

The crypto space isn’t left out of this party. Cryptocurrency charts looked promising and almost tending towards an explosion before the corona virus pandemic hit hard on the global economy. Blowing cryptocurrency values to the dust and hitting the btc/usdt rate well below $4,500. The total bitcoin market capitalization capsizing below $90 Billion and altcoins following similar trends.

At the height of the coronavirus-led crash, most cryptocurrencies posted tangible double-digit price crashes up to 50% their initial values. With BTC closing at $6,500 after some price recovery, the month of march was one to forget for cryptocurrency holders, but unarguably created a good opportunity for investors to dive in and buy at lower prices.

Price instability continued during the month of April as the corona virus scare continued to take its toll on every aspect of human life.

In a rather surprising event, cryptocurrency prices continued on its recovery track, seeing tangible gains and relatively lesser pull-backs as cryptocurrencies once again posted bigger returns than most digital assets including oil.

With the series of price gains, bitcoin finished off the month of April above $8,500 after posting over 15% gain on the last day of the month. Altcoins also saw relatively tangible gains over this period of time as the total cryptocurrency market capitalization exceeded $230 billion once again. The two bitcoin forks; Bitcoin SV(BSV) and Bitcoin cash (BCH) began to reap the rewards of their block reward halving on the tenth and eight day of the month respectively.

Months past the pandemic-led crash, notable cryptocurrencies have seen massive gains. Bitcoin’s impressive run of gains saw it smash the $12,000 mark and go a bit higher with a good support at $11,500 to retain its dominance of the total cryptocurrency market capitalization. Altcoins also ran riots, making massive gains before bitcoin joined the trend. I really thought it was altseason!, now I didn’t say that so loud.

Cutting it short, cryptocurrencies have put up amazing price movements; relatively. Putting up this performance in such an odd time is even a more surprising feat. Taking a look at the global situation, you’d expect things to go the other way. Previous year’s dynamics looked very much healthier than this year’s, but cryptocurrencies have performed better amidst the tides.

Situation reports across the globe shows signs of things getting better and the world recovering gradually from the pandemic, daily number of cases keeps reducing and recovery statistics improving. While the pandemic is far from over, things are poised to get even better. Taking a look at our impressive run during the pandemic, how will cryptocurrencies fare after the world recovers completely?

planet2953871_640.png
Source

A better world for cryptocurrency to thrive?

Waves of negativity spread by the pandemic at its peak led to the biggest cryptocurrency price dip of the year, well, every other digital assets and shares dipped equally. Price of oil dropped to its lowest point ever. A nightmare to world economy. Investors in an attempt to increase their fiat position hit the exchanges to liquidate their investments into a more stable and easily accessible form.

Scared of what is to come, the pressure to liquidate grew amongst investors and contributed significantly to the huge price drop on the onset of the pandemic. Fear, Uncertainty and Doubt accompanied by the effect of the pandemic on certain aspects of life formed the principal crashing forces.

However, the pandemic has revealed some hidden loopholes of humanity. During these days of lockdown, restrictions and grief, we have learnt the biggest lessons of our generation. Things we considered trivial reigned supreme. The internet once again proved to be one of the biggest innovations of the previous and current centuries.

For the first time ever, we have come to realize the actual importance of a flexible means of payment. Digital payment structures are on high demand. Human contact is in its historic lows.

bitcoin3089728_1280.jpg
Source

Post pandemic; the world will be more digital as many people have been forced to use the internet more and have discovered the possibilities and what can be achieved using the internet especially as it concerns financial transactions. While the mobile banking facilities have offered some utilities and simplified local financial operations during the pandemic, international financial activities have suffered a huge blow regardless.

The current fiat hyperinflation due to national moves to relief the economic effects of the pandemic have once again undermined the prestige of fiat currencies. The world is likely to seek better options to this system which shaky throughout the tough times.
These shortcomings of contemporary financial institutions may lure the world towards the ‘better alternative’ – cryptocurrency and blockchain technology. Influx of people into the crypto space will surely lead the next boom after the pandemic.

growth3078544_640.png
Source

We might be set for another tech boom after the pandemic. If there is one thing the digital asset world learnt from the pandemic, it is the supremacy of cryptocurrencies over other digital/digitized assets. Defi is still ruling the game and it appears to still have some gas in its engine. Defi has been one of the most enticing concepts in the crypto space during the pandemic. With the world economy poised to get better after the pandemic, profits from the recovery may go into cryptocurrencies.

Could things go the other way round?

Getting excited? Pause for a while… the crypto space is a very unpredictable environment. Things have gone pretty well during the pandemic and appears set for even better ride after the pandemic, but this might not actually be the case.

Despite cryptocurrencies delighting investors during the pandemic, the urge to return to the old style of life might see investors dump their cryptocurrency holding for fiat and go straight back to their offices, sounds impossible, right? Human behaviour guides the market, humans on the other hand are unpredictable; probably the reason why the crypto space is also hard to predict.

Increased participation in cryptocurrency and blockchain technology can be traced back to the fact that an increased number of people are seeking alternative means of earning to offset the effects of the pandemic. When the pandemic ends and life return to normal, the need for this ‘alternative’ reduces. What could follow is hard to predict.

graph3078540_1280.png
Source

A return to normal life could benefit cryptocurrencies, but the other way round is also possible. Despite the gains, this could be just another bull-trap. The tether guys are still printing hundreds of million dollars worth of stable coins with no very clear explanation. A similar occurrence of the previous year’s $13,000 btc price tease.

Anyways, I really hope the Tron network’s USDT tokens are actually ‘being replaced with some ERC-20 USDT’. But if money is being printed from the thin air again, like the United states government, then it will only take some time before the ‘new investors’ and institutions starts to liquidate their gains and send us straight to the huge reds.



0
0
0.000
1 comments
avatar

This post has been manually curated by @bala41288 from Indiaunited community. Join us on our Discord Server.

Do you know that you can earn a passive income by delegating to @indiaunited. We share 80 % of the curation rewards with the delegators.

Here are some handy links for delegations: 100HP, 250HP, 500HP, 1000HP.

Read our latest announcement post to get more information.

image.png

Please contribute to the community by upvoting this comment and posts made by @indiaunited.

0
0
0.000