Cryptocurrency is an internet-based digital asset which is used for the transaction. It is a digital alternative for a traditional currency where individual coin ownership records are stored in a ledger existing in the form of a computerized database.
All the transaction activities and access is done by strong cryptography of the owner. For the transaction, private and public keys are used which are stored in a digital device or program called Wallet. One can also create a cryptocurrency of a new kind.
Future of Cryptocurrency Post COVID-19
The impacts COVID19 pandemic has not only made on the travel, work, and shop across the world, but it has also impacted the share markets in the US, India, China, and Europe. Although rare assets are mostly considered safe in all stock exchanges, however, there has been some downfall in the value of precious metals in the pandemic period.
The value of Gold has also decreased during the time. However, the prices of silver and platinum have been increased. But there is doubt how long the prices will be high and sustained. The value of many currencies is also sliding in the period.
All these show that there is little safety in investing one’s hard-earned money in traditional assets. This scenario on any possible pandemic or lock-down situation suggests the finance market that the traditional assets and investments can fluctuate if a similar situation happens in the future. This moves the proclivity of investment and assets towards cryptocurrency.
How Cryptocurrency is Protected Against Inflation
Cryptocurrency, unlike fiat currencies and assets, has almost no chance of fluctuation. There are a fixed number of coins to preserve their value. The blockchain system is planned such that there will always be a fixed number of coins to be mined and there is little chance that economic crises, like the COVID19 has made. Such events will not have any effect on the value of this crypto assets.
Tim Peterson, a Bitcoin experts says that the value of Bitcoin rarely reduces just before or after a halving event. In fact, in most cases, the value remains entirely predictable by the Metcalf Law. Despite economic disorders and fluctuations of fiat currencies.
Currently, several countries within the EU, China, India, and Japan are observing a spike in the purchase of cryptocurrency. The investors choose crypto assets more than before. In this COVID19 affected financial scenario, Europe has shown its interest towards taking up the stablecoins and altcoins.
Many investors see the future of cryptocurrency bright. Many experts have been holding onto Bitcoins for as long as 7 to 8 years. The rise in the value of bitcoin has not yet slowed down even at once. The value keeps rising as more and more investors go with cryptocurrency. Crypto-assets like bitcoin have the power to upscale the current financial state coronavirus ravaged economies.
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The use of cryptocurrencies like bitcoin can reduce investment intermediaries, set up a fundamental platform for payments, acquisitions, and settlements. Because of its stable and predictable increase in the value, cryptocurrency like the bitcoin is an ideal investment opportunity for both new and expert market investors across the world.
Cryptocurrency is the digital form of currency used for the transaction in a highly secure digital network. Because of its reliable value and many other investment benefits, it can empower our economic future after the pandemic.
Cryptocurrencies have the capability to restore social and economic growth throughout the world. And in developing countries, it is great for the economy by offering easier access to capital and financial services.
It is a great opportunity for underdeveloped countries such as Pakistan, India, and Sri Lanka. In many parts of the world including these nations, the banking system is hardly accessible for everyone. The transaction medium of the cryptocurrency throw mobile and the internet will provide easy access to them for making their transactions. Any country or company can also create a cryptocurrency.
Moreover, it has a low transaction cost,fast and transparent transaction. All these features provide a great deal for the investors and chances for the nations to boost their economy.