Cryptocurrency is booming today. Many people are showing interest in investing in the cryptocurrency. They buy cryptocurrencies at a low rate and sell them at a high price when its price hikes up. Due to pandemic, many people have lost their income sources and jobs, and cryptocurrency trading is found to be a lucrative option for them to earn a considerable amount of money in a short time. The number of trades getting registered in the cryptocurrency exchanges is also increasing day by day, especially during the pandemic. Many companies who are into crypto trading have seen a spike in the registrations.
The companies are also focusing on developing the blockchain network. The savers see decentralized finance to be an ideal option. There is the next-generation digital currency that will get launched in a few countries, especially Chain. Due to the pandemic, the world is into huge debts and many concerns resulting in the financial crises across the globe. The unexpected debt burden is increasing in the government and central banks, trying to support people and companies to come out of the pandemic situation. It also increased unemployment.
The government and banks are trying hard to fight the aftermath of the pandemic. Still, the unprecedented monetary loss drives people to take financial help in the form of hard assets such as gold and the cryptocurrencies such as bitcoin. Since the start of April, the price of the bitcoin is touching the sky. It has increased to 33%, like never in the past 12 months. The value of the bitcoin got doubled. The benefits offered by the blockchain network are making the price of bitcoin go high amid pandemic. The rise of cryptocurrency clearly states a dire need for a robust and secure financial system on the internet.
The banks are reducing the rate of interest to zero. The savers are finding it tough to earn interest on the deposits they have made earlier. Many savers are showing interest in using decentralized finance platforms. Compared to the last year, the Defi platforms’ value is on the rise and got doubled up to USD 855 million. These platforms are offering higher interest rates on cryptocurrency deposits when compared to regular banking options.
The stable coins help people earn a reasonable interest rate and carry out the transactions digitally without paying a considerable transaction fee. The store value of the bitcoins attracts the people who are worried about the outsized volatility of cryptocurrencies such as bitcoin.
The cryptocurrency companies are now working with the banks. The Libra 2.0 would give ample benefits to the users to use digital currencies quickly.
The blockchain technology offered various benefits, which is not currency-related, and these got a push amid the pandemic. It is used in the health passports, digital identity, tracking the food supply chain, and electronic voting. These are using blockchain technology in the wake of the pandemic to keep its impact at bay.
The next generation currency about to be launched by China would make complete use of blockchain technology. With no access to the US dollar, the US people’s payments would take a jiffy to get delivered.
The blockchain and cryptocurrency are making the payment delivery system highly efficient and quick. The financial institutions offer low-cost check-cash services to the people who do not have access to the bank accounts. The payment can be credited to the people who do not have a physical mailing address.
The pandemic is making the transition to the blockchain infrastructure highly efficient and transparent. The COVID-19 pandemic made companies to fight the obstacles of blockchain and adopt it. The problems in supply chain and inefficiency in deploying resources and difficulty in capturing data can now be resolved with blockchain solutions.