What Does The Cornonavirus Means for Crypto?

What Does The Cornonavirus Means for Crypto?

One of the biggest causes for alarm so far this year has been the Coronavirus in China. This mysterious illness has so far claimed the lives of around 400 people since it was first discovered and the implications are not only significant for public health but are being felt economically too.  In this article, we take a look at what the Cornonavirus might mean for cryptocurrencies and your investment as a crypto trader.

No doubt, you have heard of the Coronavirus whether that be on the news, on social media or from your friends, family or co-workers, as concern about the virus is currently very widespread. Those of you who have been keeping track of the virus may already be aware of the significant number of deaths involved, and those who have been paying attention to our website will also likely know that there have been implications reflective of the Coronavirus for the financial world.

Notably, this is the fact that since the Cornonavirus became known the Asian market has suffered severely with a big sell-off of certain risky stocks and the biggest bail-out from China’s central bank, the People’s Bank of China, since as far back as 2004. There were also concerns for big American companies such as Apple, who get a large number of their parts from the virus’ epicentre, Wuhan, as well as Nike and Disney, who might be affected from the virus. As such, the whole financial world is currently at least a little bit wary of what implications of what the Cornonavirus might have for their investments. 

Is it a Negative?

In the world of cryptocurrency assets, there is also a large amount of concern. No less because China is one of the most forward-thinking crypto nations in the world and in late 2020 had outlined plans to help incorporate crypto assets further into their day-to-day life. If the market continues to struggle, then, of course, this will be one of the elements of mass crypto adoption that could be put on hold while they focus on maintaining their core financial focuses instead.

While this is a more macro look at what could be in store for the industry on a large scale, the effects of the Coronavirus are having implications on a micro-level too.  For example, the delay in the delivering of crypto mining rigs manufactured in China. Specifically, those of Microbt and ASIC manufacturers who have both had to delay orders being delivered due to the fear of the virus. This is, of course, going to slow down the processes of any would-be mining of any token, which is inconvenient for those of bitcoin as we edge nearer the bitcoin halving in just a couple of months

Is it a Positive?

While this seems to be a cause for the concern, not everyone in the industry is worried about what it could mean for crypto as some think the downturn for fiat currencies could be very beneficial as people look for alternatives. This is according to the Financial Times, who drew attention to the fact China already had the largest number of digital asset transactions in the world.

As such, as people move away from fiat, it could cause the price of bitcoin to increase as investors look towards alternatives to these crashing markets as a means to maintain capital. Of course, the industries that have so far been affected, such as oil or the others mentioned above, are not crypto-related and so it could be a positive for the likes of bitcoin to see a pump. With other publications, notably, the Block Publisher, pointed towards bitcoin as a “safe haven” from the dire situation for traditional assets. However, they were also keen to point out that there is a chance that the whole situation could have no impact whatsoever for the industry.

While another prominent crypto figure, John McAfee, seemed to share similar concepts and said to ignore the hype altogether. He pointed towards the idea that it could also just be hype. Earlier tweeting,” Coronavirus facts: Less than 2% of all cases result in death. Approximately equivalent to seasonal flu. Relax people. Don’t buy into this charade.” Clearly indicating he isn’t concerned about the situation and doesn’t think either should you.

It is still early in the day to see what the real impacts could be, but ultimately, it could go either way. While there is a cause for concern due to the heavy presence of China on the crypto market, the defining quality of bitcoin may mean that the virus is, in fact, a good thing for investors. Keep an eye on those markets and stay tuned to our updates to ensure, whatever happens, you are in the right place when it does.

Recently Similar News

casinoin-promotion etoro-promotion

Latest Guides

Latest News

AvaTrade,CFD Trading Platform,Investment,Trading

CFD Platorm’s Cite Oil As This Weekend’s Important Asset

Two CFD trading platforms have drawn attention to the value of oil and explained why it should be on the savvy traders shopping list this weekend. Both AvaTrade and Trade.com have shared similar sentiments about the need to get involved with oil as the price is currently its lowest in 20 years. Oil’s price has […]

4 April, 2020
Binance,Exchange Platforms,Promotion

Win $1,000,000 at Binance Futures

Binance Futures has launched a new trading tournament where a prize pool of up to $1,000,000 worth of BNB tokens is up for grabs. This will be the second tournament that the platform has launched for their expanding project following a similar event taking place in January. This one is set to launch next week […]

3 April, 2020
Crypto Wallets,Promotion,Trezor

Last Day To Save 15% on Trezor Wallets

Trezor’s STAYSAFE Promotion is set to end within the next 24 hours.   If you have missed both of our two news post so far about the on-going promotion at Trezor where traders can save 15% when buying either one of their top quality hardware wallets – the Trezor One or the Trezor Model T -then […]

3 April, 2020
CEX,Cryptocurrency,Exchange Platforms,Investment

MATIC To Be Listed on CEX Next Week

The Indian-based project, MATIC is set to be the latest listing on the exchange platform, CEX with full trading to be in place by the end of next week. The listing will be somewhat of a world first in that it will make CEX the first and only platform in the world where you can […]

2 April, 2020
BitPanda,Cryptocurrency,Exchange Platforms

BEST Rewards Now Live At BitPanda

BitPanda has rolled out their new BEST rewards concept where players can earn up 12.78% of additional BEST every year. The new reward scheme will see the exchange platform give out these rewards to any trader who buys and holds the platform’s native token, BEST, in their wallets. On a monthly basis, the platform will […]

2 April, 2020
IQ Option,Trading

Learn Tips and Avoid Mistakes With New Guides from IQ Option

IQ Option have released two new guides that deal with two opposite ends of trading behaviour. These two new guides from the platform are the latest in a long line of guides that the platform have been busy rolling out in recent weeks. Some of these guides have focused on techniques, while others have focused […]

1 April, 2020
CFD Trading Platform,Exchange Platforms,Investment,Trading

XTB Offering Close Only on USFANG Stocks

XTB will be temporarily only offering the option to close three USFANG related assets. The changes will be affect USFANG and USFANG+ and USFANG all of which no new open positions will be made available until further notice. This means that if you are looking to start trading these then you will not be able to […]

1 April, 2020
Crypto Wallets,Promotion,Trezor

Trezor STAYSAFE Promotion Still Live

Last week, we let our users know about a coronavirus-orientated promotion where users will be able to save money on Trezor hardware wallets. There are now just a few days left for traders to get involved The deal will allow traders who want to purchase either the Trezor One or the Trezor Model T with […]

31 March, 2020