The impact of COVID-19 has been brutal, the financial bodies had to withstand the crisis and support the people, their partners, and the business. This definitely caused a huge deficit in the finance market. But cryptocurrencies, on the other hand, is becoming the go-to currency now even more than the past. The financial authorities now have to take a measure that will help to sustain the growth of the present market. Some of the banks have also agreed to accept cryptocurrencies when the time comes.
Most importantly, when the market was failing people looked for assets that would protect them from the failing financial conditions. This is when more and more people came forward to invest in cryptocurrencies so that they can face the hard-financial blows. Investing in cryptocurrencies has become a trend as well, some think it is the safe haven of investment. If you are interested to invest in cryptocurrencies like bitcoin then you can use Crypto Genius for making safe and fast transactions.
But first, let us look into the various ways paved by COVID-19 for cryptocurrencies and the increased use.
Bitcoin is being called the new safe-haven
The safe-haven has a primary role from ages in the investing and economic systems. The safe-haven has been considered to be areas where the investment value fluctuates within the market. The portfolios are added with diversification when safe havens come to play also it benefits crucial investment strategies for retail and institutional investors.
Even though the history of a safe haven is dated back to the old times, it has a very short list that exists prior to bitcoins. The list includes some fiat currencies, commodities, art, real estate, equity strategies, United States Treasury, hedge funding, and precious metals such as gold and silver.
Now the cryptocurrencies have also been introduced to this list, it is designed to allow payment in the form of peer-to-peer connections. While fulfilling the aim of using a digital method for secure payment online, something funny happened. The blockchain technology of bitcoin gained fame, even though the speed of transactions is quite less in bitcoins.
Other than bitcoin, altcoins have come up with different methods of payment, which has allowed people to choose the best. On the contrary, the values of altcoins have increased especially because the value of bitcoin has unexpectedly peaked at values people still cannot imagine.
Incorporating the safety of money
The cryptocurrencies have flaws in them, as they are still developing and the engineers are coming up with new and better easy to make it safe. For example, the introduction of stable coins was done so that the volatile market of other cryptocurrencies cannot affect the traders of Stablecoins. Many were confused about can be done about this technology as the government was not giving out proper answers. Once the government declared it was legal the market took off at a greater pace. Over time it has increased and decreased alike.
Now that the world has been introduced to an enemy that can neither be heard nor seen, but as the ability to kill. In this time the cryptocurrencies will help the people saving money for the future. And also, if we consider the 1.7 billion who are unbanked, will get a means of sending and receiving money. Those who want to transfer their money overseas or want their accounts to receive money from a foreign land, cryptocurrencies are the easiest way of transaction.
Since cryptocurrencies do not need any exchange fees so no one has to think about paying extra. However, people trading cryptocurrencies will have to pay a transaction fee to the exchange they use to transfer money. These fees are generally not high; however, some companies demand more.
Technology reins to a modern age
Once people are educating and they know about this technology it will be easier to populate this industry and help increase the value of cryptocurrencies. Once more people recognize this as a means of safe payment, cryptocurrencies can be considered the new way of payment as well as a new safe haven. Even now cryptocurrencies have not got enough engagement they need to fully take off. However, the prices of cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash, Ripple, and Litecoin are still rising.