3 reasons the Covid-19 pandemic boosted crypto adoption.
Blockchain technology is ideal at handling multi-party, inter-organizational, and cross-border transactions. It is ideally suited to checking, protecting, and exchanging data. The Covid-19 pandemic was instrumental in overcoming the barriers to blockchain acceptance.
In this article, we’ll look at three of the reasons that people are accepting blockchain faster, now that the pandemic is slowing down.
1. Lockdown and the proliferation of remote work.
Thousands of businesses around the world have been severely affected by the pandemic.
– mckinsey.com
Although small companies were forced to cut costs to stay alive, large firms were forced to lay off employees or invest in essential operational procedures to stay afloat.
The employees themselves that were laid off needed to make some money. The ones adopting blockchain turned to investing the money they were left with into crypto, and trading that crypto on CFD platforms like Capital Crypto.
2. Printing money for stimulus cheques.
There are two sides to this particular coin.
- Heads – The inflation of the dollar as a result.
As the US government prints more and more money trying to keep their economy afloat, they inadvertently send the value of each dollar down the toilet. Fantastic news for cryptocurrency adopters. As we value crypto against the dollar, every time the dollar is devalued, the buying power of crypto is boosted – Bitcoin is a hedge against money printing – AFR.COM - Tails – The preferred choice of where to spend stimulus cheques.
Bitcoin was found to be the preferred investment choice among stimulus check recipients, comprising nearly 60% of the incremental spend.
$25 billion from stimulus checks may be used to buy Bitcoin in the third round of stimulus checks.
The whole situation has done wonders for blockchain technology and cryptocurrency. As the dollar devalued, crypto went up. As people lose money to inflation and move to crypto, crypto goes up.
3. The move to decentralized finance (DeFi).
The aim of cryptocurrency and blockchain is to disrupt and eliminate financial intermediaries.
Decentralized Finance is a trend that aims to create an open-source, permissionless, and transparent financial service environment that is accessible to everyone and works without the need for a central authority. Users will have full ownership of their assets, the ability to trade on platforms such as Capital Crypto and will interact with the ecosystem through decentralized, peer-to-peer applications.
DeFi base code outlines how any potential transaction can be resolved, and consumers have complete control of their funds at all times. DeFi will provide the greatest degree of functionality because, in principle, what you need is an Internet link to access funds no matter where you are. This lowers the price of providing and consuming these goods and makes the financial system more frictionless. Decentralization and the blockchain-based infrastructure make DeFi much simpler and more difficult for conventional hackers and malicious operations to infiltrate.
As governments fail their people, their currency, and themselves, crypto is waiting to take their place.
“DeFi is the story of 2021,” Matt Hougan, Chief Investment Officer for Bitwise Asset Management
– Forbes
Conclusion
- Lockdown and the proliferation of remote work.
- Printing money for stimulus cheques.
There are two sides to the stimulus check release for crypto – The inflation of the dollar and the preferred choice of where to spend stimulus cheques.
3. The move to decentralized finance (DeFi).
Decentralized Finance aims to provide financial services and access to trading platforms like CapitalCrypto.io that are outside of the existing financial and political systems. This will make for a more inclusive financial environment, hopefully avoiding global precedents of censorship and bigotry. If DeFi succeeds, it can transfer authority from big institutional organizations to the open-source ecosystem and individual users.
Whether that will create a more efficient financial system will be decided once DeFi is ready for mainstream adoption.
