These days, not only are people not panicking as they were in the beginning, but we already have vaccines, and apart from the necessity to wear masks in closed spaces and be very aware of hygiene (which should have happened a long time ago), life has, more or less, returned back to normal in most areas.
However, while the pandemic has had devastating consequences for some industries, it did wonders for the crypto industry.
The Pandemic and Crypto
This happened due to several reasons, in my opinion. First, with people staying at home, boredom can be a big motivator when it comes to trying out new things. With the crypto prices growing, a lot of people decided to give it a go, and try out this new digital money.
More than that, however, the pandemic also brought demand for contactless payments, and it offered growing assets amid concerns about the future of fiat currencies. In 2020 alone, BTC prices increased by around 224%, from January to December. Then, in less than a month, the price doubled to $40k, and in the months that followed, BTC skyrocketed by another 50%, hitting an all-time high of $64k.
Growth Spurred Interest
The growing price kept attracting new users. Institutional investors seem to be more engaged than ever. PayPal contributed by adding crypto to its own platform. And, let’s not forget about Elon Musk’s pumping of Dogecoin, and Tesla’s temporary acceptance of Bitcoin payments for its electric cars. While this openness to BTC has been revoked due to environmental concerns, it still contributed a lot to the coin’s growth, improvement of its reputation, adoption, usage, and more.
So, all in all, as terrible as it was/is, I can say without a doubt that the pandemic has definitely accelerated demand for digital currencies, and enabled them to grow faster and higher than ever before. And, if fiat currencies do start to see inflation issues as many assume they might, we will be very lucky that the crypto industry has developed as much as it has. There is still a lot of work to be done and a lot of improvements to make, but it is growing at a rapid pace, and I can’t see any reason to call it a bad thing.
Do you think that crypto would have grown as much as it did without the push from the pandemic?
- Yes, the potential was always there, and institutions would have pushed it up just as much
- Maybe, but it would have taken several more years
- Probably not