Undoubtedly, the outbreak of COVID-19 has affected a significant part of the global economy. Many people have even termed the pandemic as the not so anticipated “World War III.” A lot of markets, global prices, stock market prices, and the price of cryptocurrencies were greatly affected. Although before the outbreak, cryptocurrencies and digital assets were slowly becoming significant. However, in March 2020, the price of Bitcoin fell below $4000 because there was a huge demand for liquidity due to the pandemic. The same happened to other altcoins and cryptocurrencies.
COVID-19 changed the value of cryptocurrencies in an entirely new way. In recent months, there has been a steady rise in the price of cryptocurrencies. Currently, Bitcoin, the pioneer of all cryptocurrencies, stands at $19000.
Having Bitcoin at the forefront of cryptocurrencies opened a new route to the presence of speedy, reliable, and transparent financial transactions. Most investors that have witnessed this change are happy with it, but they are still curious about what will happen to cryptocurrencies after COVID-19. And this is what we will be discussing extensively in this article.
The Future of Cryptocurrencies After COVID-19
- 1 The Future of Cryptocurrencies After COVID-19
- 2 Wrapping Up
Bitcoin will remain the top performer
The truth is, no matter the economic condition, the price and value of Bitcoin will remain the same. Bitcoin is a cryptocurrency that has never witnessed a drop to zero as the coin keeps rising weekly. The reason why people love Bitcoin investment and will still keep investing in Bitcoin after COVID-19 is that it gives the ultimate freedom to convert to fiat currency at any time.
Even if the world has faced a global pandemic that threatened the global financial economy, investors were still confident of Bitcoin investment. The trust and stability of this cryptocurrency in the future will not change.
Bitcoin is protected inflation
Unlike fiat currencies and other altcoins, there are a fixed number of Bitcoins in circulation. This fixed amount is to help preserve the value of Bitcoin to ensure that there is no excess coming from the blockchain system.
The system is designed to always have a fixed number of coins mined so that no coming economic crisis in the future will have an impact on its value. In fact, researchers have stated that Bitcoin price could reach $350,000 by the year 2045.
Ethereum, Ripple, Litecoin, NEO, and EOS will rise
Asides from Bitcoin, other altcoins like Ethereum, Ripple, Litecoin, NEO, and EOS have also experienced tremendous growth over the years with steady progress in the last few months. The market capitalization of Ethereum is at $63 million in the crypto market today, and Ripple and Litecoin are follow-ups to the growth of Ethereum.
However, predicting the future of these cryptocurrencies can be hard. But if you are looking for the right time to invest, it should be now taking the way these coins have gone low and risen back to great value into consideration. The phenomenon we have witnessed in the crypto space during the pandemic has not been seen since 2017, and investing now will help you secure your future. In fact, these aforementioned cryptocurrencies will receive a lot of investments from crypto savvy investors all around the world.
Several exchange platforms will be more optimized to accept and hold more cryptocurrencies.
Currently, there is an estimated amount of 7000 cryptocurrencies in circulation. Moreover, the probability of having more cryptos in the future is very high. Companies like CEX.IO, Paxful, and BlockFi are working on a solid infrastructure that will serve their customers in the future.
As a result, several people are now saving their money in crypto instead of the normal fiat currencies due to the effect of the global pandemic. Most importantly, it is advisable that you work with the best exchange platform to have a smooth trading experience. You can check CEX.IO review, Paxful review, and BlockFi review to explore additional information. With the help of these platforms, it is safe to say that Bitcoin is here to stay and that the future of cryptocurrencies is bright.
There will be several investments in crypto IRAs
Having investments in Individual Retirement Accounts is one of the simplest and safest ways to secure your future and retirement funds. When you invest in crypto IRAs, you can be sure that your money will not be devalued, unlike investing in the traditional IRAs. However, you can choose to invest in several types of cryptocurrencies. You can choose to invest in either Bitcoin IRA, Ethereum IRA, or a Ripple IRA.
With Bitcoin IRAs, your investments are made in Bitcoin. So, if the price of Bitcoin reduces or increases, the value of your investments will follow the same route. The same goes for Ripple and Ethereum IRAs.
Before investing in crypto IRAs, you should know that they can only be traded during market hours. So, the value of your cryptocurrency could change over the weekend, and you may not be able to do anything about it. Also, the fees incurred by the crypto IRA account are usually more than that of the traditional IRA.
Top crypto analysts from BrokerChoices have stated that investing in a crypto IRA is the best way to secure your future. It will be a wise move for you to delve into crypto IRA investment after the COVID-19 pandemic.
The COVID-19 pandemic had a huge impact on the crypto industry. However, new companies are building several products and infrastructure that will help accommodate Bitcoin for the future. It is left for the Government to make a stringent decision to regulate and make it easier to trade these cryptocurrencies. Few years down the line, the acceptance of cryptocurrencies will be a positive one.
The truth is, cryptocurrencies are here to stay. Several investors across the world believe that the value of these cryptocurrencies will keep rising as more people make secure investments. They also believe that powerful cryptocurrencies like Bitcoin have the potential of disrupting the global financial system. The stable nature of Bitcoin and other cryptocurrencies currently makes them an ideal investment opportunity.