How Corona Virus Disease (COVID-19) Outbreak Will Have Influence On Cryptocurrencies?

It is a very well-known fact that the global economy affects global economics. We are currently facing a devastating pandemic known as Corona Virus, or COVID-19. And presuming it will shake all facets of the global economy is just rational. And the entire globe remains on the edge of its seats.

Now it is clear that dominant global business trends are overwhelmingly negative. And there is a little risk that the situation will change before Chinese manufactures could be active again. Maybe the outbreak of Corona Virus in Italy has far more devastating implications for the economy of the country as it has begun in the most economically productive region.

At the other hand, the cryptocurrencies have shown steady development over the last two months. Bitcoin has been reaching the $10k mark twice since the New Year. Interestingly, crypto seems to respond only to internal events, including halving bitcoin or introducing digital money from central banks.

For the very first time in crypto history analysts predict cryptocurrencies will save us from financial meltdown actually. Therefore, in order to prevent needless physical contact, China switched to blockchain technology. And now they’re using it to handle medical data, consult people, and just for now they’re willing to give up fiat money. Specifically, Chinese authorities emphasize that they value the reliability of blockchain, which is good enough to store sensitive medical data.

Cryptocurrencies may be influenced by Corona Virus, but not in any way one would have predicted. Right now, it is very up in the air. Does it behave like Gold and behave as a hedge or will it take a fall because it is a risky asset. While for now, crypto hasn’t been through a recession yet. If this correction continues into a real recession, we’ll get to see if the “digital gold” narrative will play out.