How COVID-19 changed the financial market from a dystopia to cryptopia

Despite its harmful nature, the COVID-19 pandemic has helped boost the popularity of cryptocurrency.

Cryptocurrency, as we all know, is rapidly growing in the digital sphere. If you're interested in becoming involved with cryptocurrency, you've probably heard the phrase "crypto is the future!".

Despite its cliche nature, this remark has some validity. Investing in blockchain technology is seen to be a far more practical means of generating income, as decentralised finance appears to allow users to perform simple and safe transactions without the need for intermediaries.

Let's face it: when was the last time you considered putting money in banking assets?

COVID-19’s impact on banks

The exchange rate of assets such as independent savings accounts (ISA) has rapidly dropped, owing mostly to the COVID-19 pandemic, which not only cruelly claimed millions of lives but also produced a global recession.

As a result, the financial markets crashed, triggering a global stock market disaster. This has lowered people's interest in investing in bank assets, since they perceive there is little to no financial reward.

How COVID-19 affected cryptocurrencies 

On the other hand, whilst banks suffered from the pandemic, cryptocurrencies seemingly began to thrive more than ever. Many credible figures have spoken about the positive effects that COVID-19 has had on the demand in the blockchain realm.

According to cointelegraph.com, Asheesh Birla, the General Manager of RippleNet, claimed that COVID-19 highlighted a deficit in financial infrastructure, particularly among the unbanked.

Mike Belshe, CEO of BitGo, has a similar viewpoint, claiming that the pandemic has intensified people's interest in cryptocurrency. Although COVID-19 negatively impacted on traditional financial assets, it did result in a positive emphasis on decentralised finance.