Bitcoin is a cryptocurrency that is used as a digital currency. It came into existence in the year 2008. It is related to blockchain technology. It can be raised through the process of mining, which creates in the form of rewards. Several industries use this as it is transparent and decentralized. However, security is highly prioritized.
Nowadays, it has grown up drastically and acquired market share highly. Several similar companies got back and followed Bitcoin only. But the pandemic situation also affected Bitcoin along with all other tragedies. Know about Bitcoin below.
The state of Bitcoin with Carona
Covid-19 is a new virus spread from China in the year 2019. Mankind has lost several things like health, wealth lives, etc. It has affected all industries which in turn shows an impact on the national economy. Similarly, it also shows its impact on Bitcoin.
The market value of Bitcoin has decreased to 55% due to coronavirus. Because of this coronavirus, many people have lost their businesses. Because no one is able to open their organizations, shops, etc in the lockdown. . This results in a lack of physical money to maintain their daily needs. Then most of the people sold out their bitcoins to fulfill their emergency needs. The continuous selling of these bitcoins may increase the results as we all know the simple economic rail, if the supply is more, the demand will be less.
Here also, the same thing happened. As a lot of bitcoins were available in the market, the price has reduced it to half of its value. As the nascent industry of cryptocurrency had a highly impacted by the covid-19, it takes a lot of time to recover and get stabilized. Many researchers felt that as it is invisible magic money, several Banks and other firms were restricted to support these bitcoins. This also leads to a fall in value.
Due to the scarcity of information, it doesn’t have any regulations, the investors may not show interest in bitcoins easily. It takes a lot of time for India as well as other countries to recover from this pandemic situation and to get back to investing. We can clearly say that the relationship between Bitcoin and covid-19 is negative. Also need to text a lot of time to adapt these bitcoins if most of the banks May started accepting these cryptocurrencies.
Ways to Normalise the Situation
Several researchers had specified a few ways to get stability in this pandemic situation. They are,
- More influence on policies
- If central banks launch the bitcoins
- All banks can hold bitcoins
- Magic this magic money with Market infrastructure.
Hence, Bitcoin is a cryptocurrency which can be created in the form of bonuses, rewards, or redeemed points. Convert 19 has shown a great impact on the bitcoins because of the decrease in the financial status of every individual. The government has permitted only the food merchants during the lockdown. So all other people need to sit ideally with no income. So, it has shown a negative impact. Also, the industrialists and scholars stated that bitcoins need a huge time to get an increase in their value.