The Global Impact of Cryptocurrencies 2020
Cryptocurrency is a digital or virtual currency designed to serve as a medium
of exchange. The crypto prefix comes from the fact that cryptocurrencies use
cryptography to secure and verify transactions as well as create new currency
units (coins). Cryptography makes it easy to encode something that is easy to
decipher with a key and difficult to decipher without a key, which means
coins can be difficult to create but transactions can be easy to verify.
The global cryptocurrency market is set to reach $1.4 Billion by 2017 amid the
COVID-19 crisis, the global market for cryptocurrency estimated at US$979.5
Million in the year 2020, is projected to reach a revised size of US$1.
CRISIS VS CRYPTO
The trust in cryptocurrencies unlike what most people might wonder, is
actually still high. Over 50% of people in Europe believe that crypto-currencies
are the future according to the annual poll conducted by Crypto Confidence
Index that examines the attitude of people towards crypto.
In times of economic hardships, people tend to look for all sort of alternatives
they may have not considered before. This is determined by looking at Italy
which was hit hard by the pandemic. Over 70% of the population according
to polls express belief in cryptocurrencies. Ultimately, it’s the trust in the value
that influences prices and fluctuations when it comes to crypto.
Bitcoin. Descended abruptly and recovered just as fast. It might not have
started well at the beginning of the year but in comparison to the stock, this
recovery was fast. It definitely held itself better than the stock market.
In this sense, we can clearly state that bitcoin price didn’t necessarily increase
because of the crisis. It does however present a good opportunity of
The Grayscale Bitcoin Fund, one of the most influential players in the market
did record one of it’s the most successful quarter of its existence during the
crisis. The Corona crisis, therefore, had by no means a negative impact on the
Fund's ongoing business.
The value of cryptocurrency does not change because it is not controlled by
any government. Crypto gaming is utilizing blockchain or digital currencies in
the gaming industry, either for betting or playing online casino games. So
many people in the world play video games and online casino games as a
means to connect with each other, reduce stress, create excitement and
provide entertainment. Bitcoin casino games can be used for connecting
with others, learning and teaching, and even understanding ourselves better.
The coronavirus has affected the world negatively. Apart from the negative
health impacts like increase in number of deaths and the mounting pressure
on the health systems, COVID-19 has brought severe economic meltdowns on
almost all the companies and institutions in the world. Most people have lost
their jobs, and due to safety reasons, most of the remaining workers have
been forced to work from home. Crypto-gaming companies can provide work
for the people that are currently left with no source of income. Since more
people play games every day, job opportunities can be opened by
crypto-gaming companies in crypto-currency management, crypto digital
marketing, crypto-gaming software designing and crypto gaming analysis.
The employees can work from the comfort of their homes due to the
centralized networks these companies put in place. Crypto-gaming will help
to provide more jobs for people cushioning the negative impact of job loss as
a result of the global pandemic.
The value of cryptocurrency has increased in recent days. The contribution of
crypto-companies has helped in the fight against coronavirus.
“Crypto vs. COVID-19” campaign is one of the ways crypto-gaming companies
generate funds for the provision of aids in the fight against the coronavirus
pandemic. Players can donate the unused loyal reward they receive from 42
core milestones, with rewards unlocked over time depending on the players’
wagers, without spending money. Over $100,000 dollars have been
generated from bitcasino alone, an online cryptocurrency casino company.
Bitcoin partnered with some charities to carry out this positively
overwhelming fundraising campaign.
Binance is another cryptocurrency company that has provided aid to the
government in the fight against coronavirus. Binance charity recently
initiated a $5 million coronavirus relief campaign called “Crypto Against
COVID-19”. Most gamers can easily donate money from the cash they make
from online casino games that are in the form of bitcoin in their Binance
wallet. The contribution by these gamers is used to provide basic health
supplies for hospitals in affected countries. In China alone, Binance charity
has donated over 300,000 pairs of gloves, 50000 nose masks, more than
18000 test kits, 170 barrels of disinfectants, over 350 oxygen concentrators
and 7800 protective suits to over 300 hospitals.
Also, some cryptocurrency online casinos recently partnered with Italian red
cross to establish a bitcoin fundraiser. Most gamers who have a growing
bitcoin wallet can easily contribute some funds in the fight against COVID-19.
These funds can be used in building and equipping medical centres.
BY DOREEN KAINDA