Cryptocurrencies vs Coronavirus - Who Is Winning?
As we have written earlier, cryptocurrencies seem to grow stronger in the wake of the financial crisis. Now that the market is strong it uses this strength to help people. Bitcoin was created as a remedy for the ill post-crisis economy. These days the diverse cryptocurrency market is already providing help to people trying to cope with both a deadly virus and the financial collapse.
The Market Is on the Rise
First, we should stress that after a short cryptocurrency market decline, digital assets have quickly recovered and became quite stable. On March 13 the prices on the crypto market dropped significantly and continued to decrease in the following days. The explanation given by experts reads that investors had to sell all their assets (including cryptocurrencies) because they needed quick cash to pay debts to the brokers after the oil price decline.
At the same time, many national currencies have experienced serious price drops. Reportedly, the sterling pound has lost the biggest percentage of its value in decades. The central banks of some countries announced that they will have to print new money. This chaos in the world of fiat currencies made many investors switch to cryptocurrencies.
We have seen the graphs and heard the news about the drastic growth of the cryptocurrency market capitalization but what the industry insiders do say?
An app-based trading platform Crypto.com CEO Kris Marszalek says that the number of people involved in cryptocurrency trading has quickly reached an all-time high. He says that now people become more interested in cryptocurrencies. Marszalek's words are echoed by a Binance.US CEO Catherine Coley. She says that the platform is experiencing unprecedented trading volumes. It seems that Satoshi Nakamoto's idea of Bitcoin as an alternative to a weak traditional finance system proves its viability. Let's see what happens next.
Cryptocurrency In Action
Now we can see the real use cases of cryptocurrencies in terms of helping people in the pandemic circumstances.
Enough was said about the convenience of blockchain-based charity platforms. One of these platforms, Binance Charity, launched a "Crypto Against Covid" campaign on March 25. The campaign was aimed to raise $5 million. The first 32 donations have brought over 176 BTC. Binance itself has donated one million dollars. The money will be spent on supplies for hospitals around the world.
Another initiative aimed at the battle against coronavirus is the Italian Red Cross Bitcoin Fundraiser. It is not surprising to see that the Italian cryptocurrency community is up to fight the virus considering how badly this country has suffered from COVID-19. The initial goal was to raise €10.000 and it was reached within three days on March 15 in 77 donations. The fundraiser keeps on working. The next goal is set at around €25k. The money is spent on medical equipment and improvements in infrastructure in order to relieve the pressure on the local hospitals.
On Gitcoin people can choose a medical grant that can help fighting coronavirus and donate some cryptocurrencies. The money will be spent on masks, coronavirus ventilators, and help the residents of Kenya affected by the coronavirus. The initiative was sponsored by Gitcoin and the Ethereum founder Vitalik Buterin. They donated $100,000 in total.
#cryptoCOVID19 Alliance is raising money for aid, too. The alliance includes such companies as Brave, The Giving Block, Gemini, TaxBit, CoinTraking, Gitcoin, and many others.
It's understood that this list is not full and we don't have a goal to mention all the similar initiatives. We believe everyone with a purpose of helping people via cryptocurrencies will be able to find the best option to do so.
Be the Change
It may seem that helping others is nearly impossible when we have to stay at home. The Internet has already made the communication of masses of people from a distance possible. Cryptocurrencies have made it possible to store money independently from governments and their failures. What's better is that this money can not only be stored but used as well. We are happy to see that many companies are using cryptocurrency accounts to raise money that can be used for relief in the current critical situation.
The cryptocurrency market has benefited from coronavirus but it doesn't mean that these two are going to become friends. Quite the opposite, cryptocurrencies are the allies of life and we hope they will help us to defeat the disease and recover in the post-pandemic financial crisis.