The new coronavirus(COVID 19) first encountered in Wuhan in 2019 has affected more than 1 lakh people across the globe. The name COVID-19 was announced on 11th February by the world health organization. Cryptocurrency traders are struggling to surmount volatile markets due to coronavirus. Traders have taken many strategies to fight against this.
How COVID 19 Affected Bitcoin?
According to the world health organization, coronavirus is a large family of viruses that infect animals, and mammals including human beings. The health authorities around the world are running now to halt this deadly virus that emerged in the Chinese city of Wuhan the last December.
The respiratory illness caused by the coronavirus has already impacted thousands of people. The global death toll is at 4990 and is rising daily. In this situation, the world health organization has declared this outbreak a public health emergency of international concern. Let’s check at these strategies and how COVID-19 affected Bitcoin and other cryptocurrencies.
What is COVID-19?
People who contract the virus and become unwell are said to have a fever, coughing, and breathing problems. The virus can also cause pneumonia. Recovery from this viral attack depends on the immune system of the patients. The director-general of the World Health Organization, Tedros Adhanom Ghebreyesus, said that “We had to find a name that did not refer to a geographical location, an animal, an individual, or group of people, and which is also pronounceable and related to the disease. Having a name matters to prevent the use of other names that can be inaccurate or stigmatizing”.
Affect of COVID-19 On Bitcoin Value
Around 70% of Bitcoin’s computing power is located in China. The coronavirus outbreak in China thus affects Bitcoin’s network. The main reason for causing difficulties in Bitcoin mining is the lack of new machines. In this outbreak situation, it’s not possible to develop new machines or to expand the older ones. Fear of the virus slows down the global economy.
This puts down the stock prices too. Obviously, COVID-19 will affect Bitcoin value. Traders prepare different strategies to overcome this barrier. They decided not to hold the volatile cryptocurrency. Let’s check whether there is any correlation between bitcoins price action and the coronavirus spread.
One main consequence of the coronavirus is its bearing upon Bitcoin mining. Chinese authorities have already begun shutting down crypto miners. This also affects Bitcoin pricing. But some suggest that Bitcoin has a lot to gain as the market falls. “As trust in global institutions and markets continues to deteriorate, we will see highly mobile digital assets like Bitcoin explode in value”. Jehan Chu, managing partner with Blockchain investment and the advisory firm opinionated about the present situation.
Due to the coronavirus quarantine in China, several crypto mining hardware manufacturers notified that their shipments and delivery will delay for at least two weeks. Because they were terrified of losing their money, the investors were also in a panic and held back.
Let us expect the best and be safe out there.