Right now, the main message traders are hearing is “consider cryptocurrency”. Google trends show that the search for terms like “buy crypto” has hit its highest peak since 2019. The rush for virtual currencies is not a fluke incident that has occurred without explanation. In fact, this is mostly a result of the present global pandemic and the change in direction the world has had to take in order to keep afloat. Before making any trading decisions, it’s important that one knows where trends have come from and why they are here.
In January 2020 Everything Changed And No One Expected It
The coronavirus pandemic wiped out most plans, progress, and optimal predictions for 2020. Structures that were once considered reliable and “here for the long run”, crippled under the pressure of pandemic-influenced restrictions and markets have suffered as a result.
The state of employment and financial security have also changed as a result of this twist in day-to-day trading. Unemployment continues to rise in America, as more citizens rush to claim government relief packages and seek alternative solutions in order to survive.
Industries such as tourism, travel, and even retail, are among those who have been hit the hardest. While some borders were able to open during the 2020 summer period, this move was not enough to compensate for the losses incurred by hotels, tours, and travel businesses across the globe. Other industries have been forced to pivot in the direction of remote solutions in order to keep afloat, but not every business has been fortunate enough to succeed.
However, a Gainsky report revealed that despite the fears concerning the enormous financial impact of the COVID-19 pandemic on the worldwide market, both forex and cryptocurrency trading are among the industries that are still flourishing.
Thriving Through The Pandemic
Business Insider reported a $13 billion growth in the crypto market, with top digital currencies such as bitcoin surpassing their January highs. At the time of this report, May 2020, the value of the market sat at $267 billion. As of September 8, 2020, CoinMarketCap recorded the total value of digital currencies as $322.79 billion – a major increase from May’s recording.
General fears led people to believe that the pandemic was shutting down every industry, including cryptocurrency but, instead, it gave this industry more coverage. The internet receives credit for this because, through this medium, traders are able to access and trade virtual assets with minimal barriers.
This notable increase in crypto trading is also a result of the growth in public interest in virtual currencies and non-conventional trading as a result of the events that have unraveled in 2020. With a rise in unemployment, a pending recession, and a decline in trust in traditional structures (i.e. banking), it was inevitable that people would look for alternative solutions that present promise.
The People Need Something To Believe In
“A defining characteristic of cryptocurrency,” says Robert Bentz, CEO of Gainsky, “is that it cannot be controlled or manipulated by any central figure of authority.”
Bentz further elaborated that the reason why the cryptocurrency trend is “in” now is because traders are on an avid search for stable investments to bank on. The fact that the crypto industry is experiencing encouraging performances now, in a time where markets are extremely volatile, has made this search even more significant. Traditional markets are not offering traders the assurance they need, hence the reason for looking elsewhere.
“This may be due to the continued shutdown of various physical business investments and the rise of virtual financial activity,” explains Bentz. “Experts forecast a steady increase in cryptocurrency investment, especially if this pandemic continues to take over the world.” With medical experts predicting that the pandemic could continue to impact the world well into 2021, it’s clear that the adoption of virtual trading may become a permanent solution as opposed to a temporary fix.