COVID-19 Crisis: What Crypto Can Survive The Pandemic?
The coronavirus outbreak has changed everything in our world. It wasn’t expected as much as the crisis in 2008, it almost hit suddenly. With the whole world trying to survive this terrible illness, the financial situation is not becoming any better. The recent crash in March that was called a Black Thursday impacted the crypto world as well.
If the most popular cryptocurrency in the world - Bitcoin was sold at a price higher than 9.000 dollars, after the crash it was sold for a little more than 4.000. It nearly dropped half of its price. Even though it is not the first crash of the cryptocurrency market, it was a sudden one.
After things will get to relative normal, which won’t happen in 2020 in terms of financial situation, some cryptocurrencies will survive the outbreak of coronavirus while others might not recover from it.
It can be claimed that Bitcoin is the ultimate winner. Due to the fact that it is the first ever created and launched crypto coin in the world, it is more likely that all investors will keep investing in it. In this economic meltdown, Bitcoin is slowly gaining grounds again.
As it was mentioned, it nearly dropped twice in price. But over the last week it was steadily increasing in price reaching more than 7.000 dollars this week. What is even better is that it keeps growing.
Experts also note that Bitcoin is usually rallied in around a year following the Bitcoin halving. It doesn't mean that this same situation will happen again, but there is a tendency to invest in cryptocurrency after such events. So most likely some investors are going to invest in Bitcoin to gain this safe haven against possible meltdowns of economy which might happen again.
Since the Bitcoin is having not the worst time, it also has lead to the fact that businesses that rely on Bitcoin might win too. It was noticed that the purchasing rate by using Bitcoin currency didn’t drop in rate. So if the companies offer to buy goods and services by using Bitcoins, they might be winners.
Exchange platforms might feel safer too. People rely on such safe platforms as BTCBIT.NET to exchange their coins into dollars. And this means that users might not be afraid of various downsides of using such exchanges.
Those startups that are based on blockchain and had managed to raise their capital or at least to gain cash before the crisis might become even stronger than they used to be before the crisis. How is that possible? If a company managed to gain cash and have good capital, it means that after the crisis they might be able to quickly regain grounds.
The could even buy the companies of their less lucky competitors thus taking over significantly bigger market. That means new customers, higher sales rate, better and bigger income.
There are losers to this crisis and most likely those will be small or middle capitalization alternative coins that are less popular than Bitcoin, Litecoin, ETH, etc. If Bitcoin has no problems with recovering since most likely investors will be investing in it, expecting it to gradually go higher in rate, you can’t say the same about alternative small coins.
They have dropped in price and it doesn’t seem that investors will be more likely to invest again. The investors in such alternative and less known coins have experienced huge losses, they don’t believe it will be a good idea to invest again when there is a Bitcoin that is gradually increasing in price. Most likely, they will struggle to survive.
The Struggling Companies And Startups are experiencing the worst times. If a company can’t generate cash, it is less likely that it will survive. The recent research shows that there are thousands of startups and companies that have been closing since the beginning of the outbreak of the coronavirus outbreak. Small exchanges are struggling too. If they won’t be able to generate revenue to cover their expenses, there won’t be a point of having these exchanges.
Even though the coronavirus pandemic is changing the world, it doesn’t mean that everything will be bad. Right now all companies, even those that are not based on blockchain are in a survival mode. The same can be said about people.
Everyone is trying to survive and the goal is to at least survive until the covid-19 outbreak will be finally taken under control. This is what most companies will do, they will wait until it is over so they can gain their grounds again within a couple of years or months depending on the severity of changes.