Crypto & Coronavirus – The affected industries & The importance of crypto, Part II
The start of crypto
Crypto started when Bitcoin was created. Before it, there were many attempts to create an universal global accepted currency, but all failed. Its main purpose was a new way to send value, an immutable way, a much cheaper way compared to the banks.
It started from a few cents and grow to a value of over $6,000. Many people called bitcoin a bubble waiting to pop out – but the fact is, it won’t. The value of Bitcoin is not in its USD price, EUR or any other FIAT. The value of Bitcoin comes from the fact that you can send money from a user A to an user B without A knowing B or B knowing A personally in less than one hour for a fee of just a few cents. Milton Friedman, a great american economist, realized that the world needs something like this in order to evolve.
In a crisis situation, as we are in now, a lot of things can happen. Some banks might close, some banks may stop operating and some will overcharge the customers. Here where crypto comes to save the day
The importance and benefits of crypto
Its cashless – In a pandemic scenario as we’re in now, going cashless can save thousands of lives. CNBC actually wrote an article about handling cash and the way it can spread Coronavirus. Bills may carry the virus for a few good hours, if not even more. Going cashless is a great option to stop spreading the virus and protect yourself. There are a few crypto debit cards that are worth taking a look at.
You can always take a loan with crypto – Many and many people may need a loan now. But they probably don’t have a laptop or something with a higher value that they can sell or pawn to get those. In crypto however, there are many services that are offering you a loan based on your crypto. If you have $10,000 worth of crypto, you can pawn those and get $5000 usd. Of course, to get your crypto back you’d need to pay a 10% fee for one year.
Sometimes, your value is safer in crypto – There is news about Trump wanting to give a $1000 coronavirus stimulus bill. This means that over 3 Trillion dollars will enter the American market. Will its value be the same in the head of investors? Clearly not. Who would trust someone that can print as many bills as he can? That’s why cryptocurrencies have a limited number. For example, there can be a maximum of 21 million bitcoins. And its structure is created in a non-inflationary way so that it will likely increase over time, rather than decrease.
You can probably do the same with crypto as you do with fiat currency – Want to buy a new laptop? There are a lot of companies accepting BTC as a way of payment. Want to travel using Crypto? There’s TravelByBit and also Travala.com. Want to play sportsbook taruhan bola online? You can. There are many, many things that you can spend your crypto on. And of course, there are also stablecoins for people that don’t like the volatility of Bitcoin and other cryptocurrencies.
It’s probably the future – In the future, banks will probably massively adopt blockchain technology and sending a transaction from one user to another will only take a few seconds – as it should. This would save a lot of time and a lot of money – but the banks would have to suffer from this move as their commission will decrease.
The technology behind bitcoin can be used in almost any sector – Blockchain technology already established its importance in the crypto world. What about other sectors? Well, implemented correctly – it could help fighting fraud, replacing the bookkeeping of a company, financial transfer and many many others benefits.
There are many more other benefits of crypto – both financially as well as from the technology point of view – but we’ll stop here. Crypto was affected by COVID-19 and will probably be more affected in the future. But it won’t ‘die’. Same as in any other sector, it will need some time to heal.