In the light of tragic consequences of Coronavirus Disease 2019, the world economy has faced with an unprecedented crisis. Any attempts to predict the future of the market are condemned to be relative, as it is impossible to say how long the pandemic will last and what scale it will reach in a month, or even in a week time.
However, many experts have expressed their opinions on the most likely case scenarios of financial future, including cryptocurrencies, particularly BTC, which, according to the specialists, plays the role of “safeguard” asset.
Whenever a global upheaval takes place, digital currencies tend to grow in price. Since any fiat currency completely depends on the governments, politics and global economy, all fiat transactions are always considerably influenced by large-scale crises.
But not the crypto ones. Digital currencies are completely independent from any authorities and financial institutions and thus, remain stable while the fiat currencies rates experience surges.
At the same time, one needs to realize that the impact COVID-19 pandemic is likely to have on the cryptocurrencies rate has two opposite sides.
On the one hand, the impact of market correlation between digital currencies and stock exchange assets is very likely to raise BTC’s value, since the extraction of gold and alternative resources is going to experience dramatic disruptions due to the lockdown order.
On the other hand, there is such factor as the difficulties related to crypto mining process. Global quarantine also means disruptions in the operation of mining firms and problems with new equipment supply. This may cause a decrease in cryptocurrencies value.
The specialists, however, believe that the network is perfectly able to adapt to new workload pretty fast, which means that crypto market is going to find the right balance mutually beneficial for both miners and crypto investors almost immediately.