There is no doubt that China is one of the cryptocurrency investment hubs performing different cryptocurrency exchanges. In connection with that, Coronavirus affect China’s economic status negatively.
Since there is a current outbreak of Coronavirus in China, different businesses have been affected. This is always true in both the cryptocurrency market and in the traditional one. What’s worse is that the Coronavirus is considered by the World Health Organization (WHO) as a pandemic.
This news made the European and Asian market stocks to get down dramatically. Different cryptocurrencies, such as Bitcoin, are having a hard time during this pandemic.
Cryptocurrency – Is It Still Safe
Cryptocurrency traders are asking if trading the different cryptocurrencies, such as Bitcoin, is still safe. Well, according to research, trading cryptocurrencies is not safe during this pandemic. It is the nature of humans to protect their wealth and money. At the same time, during this pandemic wherein the economic status has been down, no crypto traders will perform trading when the chance of recovering from the damage done by the pandemic is ambiguous.
Everyone is aware of the possible effects of Coronavirus to human health and the economic status of a state. The Coronavirus that started in China is now causing mayhem and havoc around the globe. There is no doubt when some of the states cannot cope up with this pandemic.
Coronavirus does affect not only the traditional market but also the cryptocurrency market as well. This outbreak causes everyone to ask questions on how this outbreak affects the cryptocurrencies.
On the other hand, decentralized mechanisms support different types of cryptocurrencies. Crypto is being used by many individuals around the globe and is considered to be independent to the government. In connection with that, the COVID-19 made people switch the traditional currencies to cryptos.
The Effect of Coronavirus on Crypto-Mining
As mentioned, South Korea and China are the countries that own over 70 percent of the entire crypto mining powers. This means that you can expect a huge effect on the economic status of a country when the virus continues to spread.
For the past few years, there is a formulation of different equipment for crypto mining. Since the price is still low, these crypto-mining tools are wasted. In connection with this, to get a balanced algorithm, many of the mining farms get more popular compared with these crypto-mining tools and equipment.
The mining farms became popular because of quarantine and isolation. This is because mining farms only require less movement. During this pandemic, the different cryptocurrencies have a low price exchange. But, it is expected that after this outbreak ended, Bitcoin and other cryptos will start to have an increased price.
On the other hand, some researches are concluding that the cryptocurrency market will not get affected by the outbreak. But, the crypto market will still perform some precautionary measures about this pandemic.
The futurists consider the BitcoinRejoin as “beyond safe.” In connection with that, Bitcoin halving can be an optimum option for a longer investment. This is because its value will continue to increase as time passes by.
Since the cases of COVID-19 positive are continuously increasing, we don’t have enough data to determine about possible things that might happen in the future between the Corona and crypto. We don’t know when and how things will go back to normal. Keep in mind that Corona does not only affect Bitcoin, but it also provides negative impacts to the other crypto, such as the XRP, Bitcoin Cash, Ethereum, and many others. COVID-19 is the only thing that made the crypto market to get down drastically.