There are many reasons to believe that cryptocurrencies like Bitcoin may help to halt the spread of COVID-19.
Cryptocurrencies are digital currencies, which means they rely on a digital method of transferring currencies. Therefore, it eliminates the need to handle actual paper money. Thus, the transmission of coronavirus can somehow be prevented.
According to some health experts, paper money is the number one carrier of germs and viruses and it’s possible that the coronavirus could get transmitted through money. The cryptocurrency’s digital nature means that the world of Blockchain could possibly help stop the spread of the virus.
In addition, several projects within the Blockchain industry function remotely, which keeps the workers protected from the rapid spread of the virus. This is why several Blockchain companies have continued to operate and continuously contribute to the economy despite the pandemic and this is something that other sectors cannot do.
Assets Could Decline in Value as Well
Meanwhile, crypto assets might experience a fall of value because of the pandemic. Bitcoin, along with other decentralized assets, has witnessed a massive fall in the mainstream markets.
This connection is arguably visible between the declining prices of the traditional financial market and the coronavirus pandemic. Some experts believe that the declining traditional markets may also affect the value of crypto prices now that investors are opting for a more stable asset.
If only Bitcoin can separate from this situation, it will have the potential to become a global hedge option for those who are dealing with the financial crisis now.
All Crypto Conferences Cancelled
Crypto conferences are among the events that were first to experience the effects of the coronavirus. For instance, the TOKEN2049, which was scheduled around the middle of March in Hong Kong, has been postponed to October. Also, the Hong Kong Blockchain Week, which was planned to happen in March, was moved to September.
Although some organizers of these crypto events are hoping that everything will be back to normal around the end of this year, there are those who are not that optimistic. In fact, the upcoming EDCON in Italy has been canceled. As for the Nitron Summit in South Korea, the event has been postponed although it’s not yet clear when the new date will be.
With these new measures that the US government has put in place, major crypto conferences all over the country might soon be postponed or will be totally canceled. Meanwhile, the Crypto Bulls Roadshow of India, which was supposed to join the Consensus 2020 in New York, didn’t release any statement yet. But they are most likely to encounter challenges due to the travel restrictions imposed in the US.
Conference Attendee Tests Positive with Coronavirus
Although the travel restrictions might seem harsh for everyone in the crypto industry, health experts insist that the restriction is necessary in order to protect the elderly and the sick from this deadly virus. They are people who are the most vulnerable to COVID-19.
Those who attended the ETHLondon, a hackathon event, which took place last February 28, should be aware of their possible exposure to the virus. That’s because Zhen Yu Yong, the co-founder of TorusLabs, who was present at the event, has been diagnosed with the virus. He also attended the Ethereum Community Conference in Paris from March 3 to 5.
Travel Restrictions Effect on Crypto
The travel industry worldwide has to deal with a massive drop in the numbers ever since the news of the coronavirus outbreak was first reported.
As expected, the Blockchain industry was not exempted from this, and the industry’s earliest disruption was immediately felt when the coronavirus started spreading at a rapid pace in Wuhan, which was the epicenter.
The government officials of China have also decided to extend the Lunar New Year, which is considered the country’s largest holiday that often leads to the biggest domestic migration in the country.
Several employees within the crypto industry of China were not able to bounce back immediately, and this has caused Bitcoin to suffer as a result.
Today, several countries around the world have imposed travel restrictions in an effort to stop the spread of the virus.
Huge Cryptocurrency Sell-Off
The travel restrictions have led to massive sell-off of cryptocurrencies. Because of the uncertainties on the measures that officials will impose as a response to the outbreak, a massive sell-off of cryptocurrencies has been triggered.
On February 26, the price of Bitcoin fell by about 6 percent after about $150 million worth of the cryptocurrency was liquidated at BitMEX.
What is Coinbase Doing in This Case?
This issue mainly affects companies that are tech-centric and are tied to different industries where the main operations rely on China, the epicenter of the coronavirus. Some of the biggest conglomerates have implemented a uniform policy in responding to the pandemic.
Several of the world’s biggest firms, such as Amazon, Google, and Apple, have been asking their employees to take their work home and have enforced a strict quarantine policy, which is what health authorities around the world recommend.
Meanwhile, Coinbase, a leading cryptocurrency exchange company, came up with a multi-stage disease response strategy into their company policy and has based it on how the employees and the company will respond when things like the rise of coronavirus cases will occur within the company’s premises. Aside from coming up with a system of making employees avoid public places to prevent contagion, the company’s plan includes an assessment system of threat that will work on a case-to-case basis.
One of the most prominent infections that have been reported in the company is that of its employees in Japan. The company rated it as Stage 1, which is a more active threat compared to that of the US but is lighter than what has happened in China.
Developing plans such as this can be critical in ensuring that the most foundational businesses within the cryptocurrency industry are able to keep the crypto assets flowing openly despite the harsh consequences that the pandemic will present.
The question of how the various businesses within the crypto industry will run well in the midst of the coronavirus outbreak is especially important.
While the traditional stock market is getting heavy blows due to the pandemic, the value of cryptocurrencies has remained relatively high even though it suffered a few major losses lately. Ultimately, the overall success of cryptocurrency will not depend on its price at a particular given time.
For as long as it continues to thrive and the people who make up the crypto space will be able to sustain it, then we can expect a good future for cryptocurrencies.