Phenomenal increase in Crypto trading during Covid-19 pandemic

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There had been an abnormal rise in the investment of cryptocurrency in the last 4 months (Feb 2020- June 2020). I primarily got drawn to this fact while I was doing some study on Blockchain, as I like to keep myself updated in the world of Blockchain and Crypto currency. This is a general assessment, while I will come up with data in my next blog.

I mentioned the last 4 months, specifically because these were the time when almost 75% of world’s population were staying indoors, due to restrictions imposed by various countries to tackle the threat of Covid-19.

We saw crazy things happening in this extremely agonizing time, Crude Oil crashing to -ve, equity markets all over the world tumbling down due to corona virus fear, unemployment rising to the highest level globally, GDP growth declining in almost every country of globe, tourism & aviation industry coming to dead stop and the list is endless and frightening BUT one segment which remained unscathed and kept on growing was Crypto Currency, primarily known by all layman’s as Bitcoin (BTC) & Ethereum (ETH).

So, what was the reason for such undeterred faith shown in this segment? Why people were ready to take risk in this highly volatile market? Was it a race to make quick profit? Was it a race to double the money in few hours, days, week or month? OR a digital asset to hold for long term investment?

Rush to crypto market was so much so that in USA, during the turmoil in economy, where users claimed that they used their 1200$ stimulus money from the CARES ACT to invest in Bitcoin and their investment paid them well. Many exchanges confirmed that they received exactly 1200$ cheques, in the users account.

Similarly, Trading volume on Mumbai based WAZIRX, one of India’s leading Crypto exchanges, rose 400% and 270% month on month in March and April respectively, and there is continuous increase in the new sign ups and active users.

One of the reasons can be, the fair percentage of educated population foresees the devaluation of the fiat currency in the coming months or years and being that the case, investment in Bitcoin and cryptocurrency can be a very promising venture irrespective of its highly volatile nature.

A point to ponder: Do you see Bitcoin as a daily transactional currency in the near future? or more of a digital asset to hold on as an investment?