The world is facing a global health crisis of COVID-19 and there are more than 3 million people and 200+ countries affected by this epidemic. This has bought the world to a stop with complete lockdowns placed nationwide by most countries to #StopTheSpread.
Cryptocurrency Market also saw a sudden decrease in the value of major cryptocurrencies like Bitcoin (BTC) Ethereum (ETH), Ripple (XRP), and more. But there were rays of sunshine of the crypto community amidst this widespread pandemic.
On 4th March, the biggest democracy in the world, India, witnessed a landmark judgment when the apex court of the country lifted the ban on Cryptos by the RBI, allowing banks to offer banking services to Cryptocurrency Exchanges and Crypto-related Businesses.
Following Day i.e. on 5th March, news came from South Korea that the South Korean National Assembly has passed new legislation to allow trading and investment in digital assets. Same Day, France’s commercial court, Tribunal de Commerce de Nanterre, determined that Bitcoin is a fungible intangible asset and is in face at par with fiat currency.
Today, Bitcoin (BTC) surpassed the $8000 mark and was trading at a price of $8,669.89 at the time of writing. This is a result of over 11% spike in its price over the last 24 hours. As shown in the chart below, most Cryptocurrencies have experienced a hike over the past few days.
In the coming weeks, the most anticipated event of Bitcoin Halving or Bitcoin Halvening is to take place. It will be interesting to see how the 50% decrease in the current Bitcoin Mining Reward of 12.5 coins to 6.25 coins will impact the overall value of BTC and other cryptos in the market.
Once the Bitcoin Halving takes places on 12th May 2020 at 09:13:25 UTC, it will become harder to mine BTCs which will result in decreased supply of Virgin Bitcoins in the Market. Virgin Bitcoins are freshly mined Bitcoins by a miner that are circulated in the market.
Not only cryptocurrency but its underlying technology of Blockchain has also seen growth in its use-cases around the world across industries. In fact, throughout this pandemic, there are many regulatory authorizes, businesses, and companies that are coming up with Blockchain Solutions to curb the impact of Coronavirus.
Recently, 11 US lawmakers urged the US treasury to consider Distributed Ledger Technology of Blockchain for Covid-19 Relief. IBM with HACERA has launched an open-data platform to support Coronavirus response.
Some other organizations that are utilizing or considering using Blockchain are World Health Organization (WHO), Microsoft, Oracle, World Economic Forum (WEF), etc.
As the world is fighting against the global health crisis and the shutdown of businesses and most economic activities is expected to increase, it will be a crucial time for the crypto market as well to prove its continued resilience over the next few months.
What are your thoughts on the current scenarios in cryptosphere? And where do you think the market will go after halving amidst COVID-19?
Do share your thoughts in the comments section below.