The Cryptocurrency Market After COVID-19 – When containment measures began to take place during COVID-19. The eyes of hundreds of thousands of investors began to track the behavior of cryptocurrencies. The global circumstances were unique and. As it has been happening since cryptocurrencies are in circulation. A correlation was expected between the uniqueness of the moment and the behavior of cryptocurrencies in the markets.
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Table of Contents
The Origin of Bitcoin: the Crisis of 2008
We don’t require to go too far back in time. Just a decade ago, Bitcoin was founded by the mysterious figure of Satoshi Nakamoto in the context of the 2008 financial crisis. It was a historical moment where the big banking systems were running out of water due to the excessive accumulation of unsustainable debt. This debt had grown exponentially during the previous decade in a speculative maelstrom that sought to generate income at all costs. Regardless of the potential consequences. The global banking system became increasingly like a huge house of cards that could collapse at any time as soon as the support of a single card failed. Finally, the letter that triggered it all was the downfall of Lehman Brothers, and the rest is history.
A Decentralized System
The emergence of Bitcoin right in that context was particularly timely thanks to Bitcoin’s inherent decentralization thanks to the blockchain system. In a world where the addresses of the big banks had failed the global economic system. Bitcoin was constituted from the premise of completely dispensing with a centralized institution capable of controlling the flow of money. This feature, added to anonymity, made cryptocurrencies begin to take off and became an upward value where to invest in times of global crisis.
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A New World Crisis?
The measures aimed at combating the global pandemic that began to be established in all regions of the world from the months of February and March 2020 dealt a severe blow to the economy of all countries and have condemned the planet to a generalized global recession. By 2020, with an economic recovery not expected until well into 2021. Cryptocurrencies, as they did at the time of their birth, are once again becoming a top-tier safe haven.
Cryptocurrencies on the Rise
Within this framework, cryptocurrencies are playing an increasing role. Bitcoin is close to doubling its price from € 4,600 or $5,444 in March to € 8,200 or $9,703. Which is averaging in the month of July. While Ethereum price in euros has gone from € 109 or $128 to € 214 or $253. And, for its part, IOTA It aspires to triple its value, going from € 0.09 to € 0.022. People who invested in cryptocurrency last March doubled their investment in just four months. And these prices are expect to continue a very robust and accelerated rise over the next year.
The Multiplier Effect of E-commerce
The pandemic brought about an effective global closure of proximity commerce, with which millions of people switched to online commerce for the first time in order to acquire basic necessity products. This digital commerce boom, to the detriment of face-to-face commerce, is also having its counterpart in the cryptocurrency market. Where hundreds of thousands of new investors are filling the cryptocurrency market for the first time. Its mass arrival is driving up the prices of all cryptocurrencies and making investing in the increasingly profitable and safer. The increasingly extraordinary success of digital platforms such as Amazon, Spotify, Netflix, or Google itself reminds us that. In a digital world, the economic force is destine for digital currencies.
Increasingly Robust Currencies
After more than ten years of travel, cryptocurrencies are proving that they are an increasingly safer investment and that their journey has only just begun. After the great price drop of Bitcoin between 2017 and 2018. As a consequence of the boom experienced during the previous months. Many specialists tried unsuccessfully to forecast the end of cryptocurrencies. The reality is quite different. Thanks to the robustness of the blockchain system, cryptocurrencies show an amazing resilience against this type of swings. And, just a couple of years after that turbulence, the resilience of Bitcoin is again amazing the world.
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