The Spread of COVID 19 Continues to Boost the Value of Digital Currencies
The beginning of the 2020 COVID 19 global pandemic marked the debut of digital currencies into the mainstream. The negative economic impacts of COVID 19 lockdowns forced loyal conservatism in Europe to make the switch to cryptocurrencies and cashless financial payments. Using DLT based solutions, global businesses slowly started to change the public’s attitude regarding crypto and blockchain technologies. People’s general understanding of finances and how money works have evolved since the COVID 19 virus changed the world.
Bitcoin and other digital currencies have turned out as surprise safety nets for the global economy. During the challenging times for people from all walks of life, blockchain technology has proven useful in launching applications to prevent the Coronavirus spread. Data researchers fear the virus’s global economic impact could have been much worse without digital currency solutions.
How the Global Pandemic Impacted Cryptocurrencies and Platforms
In early 2020, the United States experienced an unprecedented coin shortage that brought conventional currencies under fire. Transmission fees related to traditional funds and currency systems also became the attention of scrutiny and compared to alternative assets. Combining the failing global economy and cryptocurrency security aspects brought digital currency to a new level of success.
As 2020 draws to a close with COVID 19 still rampant, PayPal saw Bitcoin earning potential right away. PayPal and Cash App recently purchased most virgin coins and caused an unbalanced chain of supply and demand. The Federal Reserve System’s Board of Governors remains actively working with central banks to discuss resources and compare digital currency solutions in the last few months of 2020.
Banks in the United States recently received approval for crypto services with little expectations for great demands. The surprising shortage of newly mined coins has significantly increased each coin’s value that hits the crypto exchange. Financial analysts have recently noted the risk-averse structure of crypto exchange platforms but have not determined what the future could hold.
Will Bitcoin Continue to Dominate the Crypto Market?
In the past few weeks, Bitcoin has experienced massive market value gains that dominate the exchange market. The value of each coin continues to grow with the minimal competition with other currencies. However, XRP is a cryptocurrency that has skyrocketed in the last data reviews by as much as fifteen percent.
Cryptocurrency predictions show more projected value increases as COVID 19 cases begin popping up in locations previously stomped out in numbers. XRP continues to surprise traders by outperforming Bitcoin, which has reached all-time high values. There aren’t many drivers fundamental to influencing the crypto exchange market, but there isn’t any doubt that COVID 19 will play a role later down the road.
Value Spikes Projected to Continue into 2021
The majority of data analysts project cryptocurrency value spikes to continue into 2021. Bitcoin dominates the market with XRP and Ethereum biting at its heels by barely surpassing Bitcoin’s recent profit margins.
Central banks find themselves scurrying to print over fifteen trillion dollars of stimulus money amid inflation rates. The majority of attempts to ease the virus’s economic impacts proved futile and tipped the scales in favor of cryptocurrencies. The faltering of traditional financial systems triggered crypto platforms to grow as the next up and coming inflation hedge.