What To Expect Of The Crypto Boom After The Pandemic?

What To Expect Of The Crypto Boom After The Pandemic?

“One thing that the pandemic has highlighted is that bitcoin and crypto currency have real value in today’s world.”

The coronavirus pandemic has had a positive impact on the video gaming industry. As more and more people across the globe are quarantined at their houses, they are looking for other ways to keep themselves occupied within the confines of their isolation. Video gaming especially Netbet Casino has emerged as a popular means of entertainment which also allows for social connectivity over digital platforms.

Just like gaming, cryptocurrency, mainly Bitcoin, made a significant increase in 2020 despite many stuff that would typically make investors hesitant, including US-China tensions, Brexit, and, of course, a global coronavirus pandemic. From a year-low on the daily charts of US$4,748 (£3,490) in mid-March, as pandemic fears come to a close, bitcoin rose to just under US$50,000 today.

It has risen to all-time peaks above US$40,000, making news day after day and speeding up the prices of other cryptocurrencies at the very same time.

So what led to this massive price appreciation, and is it special from the 2017 boom?

One reason for the massive price increase is that there has been a massive surge of investors from high-scale institutions such as pension schemes, university endowment funds, and investment trusts. That wasn’t the case in the last speculative bubble in 2017.

The Move MainStream

Bitcoin has also been supported by large, heavy investment firms and a few large, consumer-facing payment names. PayPal now allows customers to purchase, hold and sell Bitcoin straight from their PayPal accounts. Rival’s digital payment firm Square revealed in November that more of its Cash App users are purchasing digital currency and buying more on average than it was before. The number of vendors accepting Bitcoin as a form of currency is increasing fast.

Bitcoin too has become much more advanced since the days when it was primarily used as a drug buying method on the dark web of Silk Road. Bitcoin digital wallets, keys, and transactions are easily accessible and there’s a lot more credible data out there than before.

The emergence of financial instruments, like bitcoin futures and options, and also block chain-related funds, has enabled investors who might have been afraid of uncertainty to get involved. Bitcoin futures means that investors can speculate on falling prices by “going short” on cryptocurrency.

The inflation hedge

In addition to all this mainstream enthusiasm, the chaos brought by COVID-19 has led to massive economic stimulus from countries around the world, and many central banks have been printing more money. This could cause inflation, which in turn reduces people’s purchasing power.

In the face of this danger, investments such as bitcoin are considered a store of value. The total number of bitcoin that’ll ever exist is set at 21 million (unless the scheme changes) and around 18.5 million are now in circulation.

The supply of new coins is also moving slowly because the incentive that bitcoin miners obtain for checking transactions on the block chain is roughly half after every four years.

This is a clear sign that the forces in the financial world see cryptocurrency as the future.

What’s The Future?

It, therefore, appears that the recent recognition of the Bitcoin price may have more element than in 2017. So, what to expect? The rising involvement of gamers due to the COVID-19 situation is expected to positively impact the gaming industry including NetBet Casino.

But on the other hand, there are a lot of really bullish forecasts for the price of Bitcoin in 2021.

But wherever the price goes from here, the prosperity of the leading cryptocurrency is obviously going to be one of the largest financial stories in the upcoming year.

John Norwood
John Norwood is best known as a technology journalist, currently at Ziddu where he focuses on tech startups, companies, and products.