The last couple of years were exceptional for the cryptocurrency market. All the key players in the market have recorded a significant rise. Sure, not all the currencies out there can be that successful, but traders have much more options in front of them than ever before. It all resulted in the increased popularity of the concept. When it comes to the value of these, wide adoption is probably the most important factor.
Besides, it is quite obvious that solo miners are simply not competitive enough because there are many companies whose sole purpose is to participate in this process. If you want to take a look at how companies perform this, you should visit www.cryptopolitan.com. The only bump in this road was the global pandemic of COVID-19. Let’s see how this crisis has impacted the world of cryptocurrencies.
Let’s take a look at a couple of effects.
Source: old.iranintl.com
Contents
Sudden Drop
At the beginning of the pandemic, the cryptocurrency market has experienced a sudden drop. When you know that practically no industry was immune to these effects, then there’s no surprise why this happened with this market. In March 2023, the value of BTC has dropped significantly, by more than 30% in just a couple of days. It caused many companies to fail completely.
However, this sudden drop has influenced so many traders to invest even more into it. It took two months before the value was increased to the value it has before. As you can see, this created the foundation for the situation we have today. During that time, a lot of traders and miners have made significant profits. Basically, this was the turning point for the wide adoption that followed in the months to come.
Wider Adoption
The next effect of the global pandemic is the wider adoption. With the people being aware of the potential more than ever, and companies participating even more in the process, many businesses have decided to make the most out of this occurrence. It needs to be said that the “physical distance” policy had a big influence on this trend. Just think about it, people have perceived that cryptocurrencies correlate with it perfectly.
So, this trend was confirmed by a wide array of different companies adopting it as a legal method of payment. Not only that this occurrence provided a chance for a global economy to recover a little bit faster, but it also helped people to spend their money from the comfort of their homes. With the increased number of owners, traders, and miners, BTC’s value has reached a new record of $68.9k.
Source: veriff.com
Legalization
The next logical step was for countries to legalize cryptocurrencies as a legal method of payment. Back in 2019, Belarus was the first country in the world to make all the cryptos untaxable for the next four years. In 2023, Uruguay made the same move. However, officially the first country to adopt BTC as a legal method of payment was El Salvador. A couple of months later, the government purchased 150 BTCs. According to crypto experts from BitDegree, after a long wait, Russia is planning on legalizing crypto payments in the upcoming years.
So, this set an example that many countries will follow in the next couple of years. While there were no further legalizations after that, it is quite clear that a lot of countries have plans to conduct it soon. Coming across this information is easy, you can find them after a couple of minutes of research. Thus, you can see that this sets the foundations for many emerging economies to make the most out of this situation.
Emerging Economies
Since we are talking about the hottest topic in the financial world, a lot of emerging economies have decided to utilize it. For example, Nigeria was one of the counties that have decided to conduct a wide adoption of cryptocurrencies. The whole procedure started in 2023, and it reached its peak in 2023. The easiest way to see that this is the fact is to see how many crypto exchanges were opened in Nigeria.
The reason why this is such a good opportunity for emerging economies is that they usually do not have an efficient infrastructure. So, people will have a chance to send transactions without going to the bank or some sort of ATM. Not only that, but the potential behind digital currencies will provide them with a possibility to make a significant profit in the long run.
Furthermore, this financial injection can provide these economies with much-needed stability, especially in times of crisis, like the global pandemic of COVID-19. Besides this, it is quite obvious that the benefits reaped by this approach will be long-term. If you conduct thorough online research, you’ll come across many studies that have shown all the economies that have decided to utilize this approach.
Source: newsbinding.com
National Cryptocurrencies
The final factor of the pandemic on this market is the emergence of national cryptos. Sure, there were plans for the creation of these even before the pandemic. For a couple of months, the works were put on hold. China was the first country to release its national digital currency, Yuan Pay, in 2023. The release set the precedent that will be followed by a wide array of different countries in the future. If you want to learn the latest news and follow the crypto world closely, check out CryptoNews.
Many voices say that Germany, Russia, and South Korea are the counties that will do the same. When you think about it, this will cause a serious disruption of the market, since the competition will become much steeper than it is now. Plus, these will have whole economies behind them. So, they will have a serious upper hand against the competition. It makes perfect sense that more and more counties will start developing these.
The Bottom Line
We can all agree with the fact that the global pandemic has changed the world in more ways than we can count. The cryptocurrency market is just one of these examples. Here, you can take a look at a couple of significant changes that were made during this time. Some of them represent significant factors that will shape the future. By taking a look at these you will learn a lot about the market.
