How is Crypto doing with COVID-19?

By BlueChip Team

As we navigate through these uncertain times, we’ve seen the direct health impacts of COVID. A number of us are unfortunately experiencing those pains firsthand. On top of that, we are seeing the indirect toll it’s taking on the economy across the globe, with many companies struggling and many people losing their jobs. Crypto is seeing a similar overall trend to the general economy, however, the impact hasn’t been as hard. In mid-March, the Dow Jones and the S&P 500 saw 10-13% drops and Bitcoin/Ethereum saw a 50-55% drop. However, while coins were down, Crypto exchanges reported seeing buys and the coins bounced back while stocks continued to drop. So, why is this?

The decline can be explained by people's increased cautiousness during uncertainty, thereby limiting new investments. In other words, people are saving liquid cash rather than investing it. The same effect is seen in the traditional market. The reasons behind why the impact wasn't as bad for Crypto may be because people have more confidence in the electronic currency while fiat currency values fluctuate. For Crypto firms, the technology has always been an online-focused and with more businesses shifting to online, this adds more opportunities for blockchain usage. 

The Crypto community is discussing opportunities to utilize blockchain in aiding COVID-19. One opportunity is the distribution of financial aide and vaccines (once it'd developed). The distribution must be on a global scale with minimal risk for waste or misuse. Blockchain is designed to be transparent and scalable so using the technology would allow for detailed tracking. 

While conversations on how Crypto could help continue, Binance Charity launched Crypto Against COVID where you can donate Crypto to help deliver supplies to hotspots around the world. They have already delivered over 1 million PPEs (personal protective equipment). They are continuing their efforts to provide a very transparent donation by tracking where the donation goes and how it's utilized. If you're looking for a way to help, this is a great place to start and see your Crypto make a positive impact. 

Tags: Informational