The spread of the new Coronavirus or COVID-19 has been an unprecedented event, and has had a significant impact on global financial systems and sectors.
This time it was a virus
The volatile cryptocurrency market hit a serious blow on March 12, the day the market crashed in the blink of an eye. The world's largest cryptocurrency, Bitcoin [BTC], has seen an uncontrolled drop that has brought down the entire crypto market.
The stock market also woke up in a panic-stricken world when stocks from around the industry began to collapse. The frenzy of the market has brought down even the safe haven par excellence - gold.
Cryptocurrency exchanges are the skeleton of the crypto market, and it is on the relevant platforms that traders can do business regularly - very popular in this period is Bitcoin system. Unfortunately, their physical offices were forced to close due to the virus. Where remote work was not already a reference principle, it set up an infrastructure to allow it to continue offering the necessary services.
While the exchanges maintained the decentralized spirit, the miners did not make it. The effects of a crisis were first noticed in the cryptocurrency hashrate. China was contributing 65% of Bitcoin's computing power and since the country was the epicenter of the virus, miners and mines were significantly affected.
In addition to the difficulty in the mining sector, mining equipment manufacturers have faced delays in production and delivery. Moreover, the collapse of BTC prices made the situation worse, as mining became unprofitable for miners and many decided to give up until they could at least equalize income and expenditure.
In the meantime, other services and activities in the cryptocurrency sector have also experienced a period of inactivity. Conferences regarding Blockchain and crypto activities around the world have been canceled or postponed due to travel bans announced by most countries.
Brad Garlinghouse, CEO of Ripple, said: “Our global economy is in unexplored waters, but there is one thing I have learned from history: markets are extremely resistant. Nobody has all the answers, but in times like this, we can always be kind to each other. Remember, no matter where you are, we're in it together. "
A step forward
In these difficult circumstances, the blockchain and the crypto-community are helping to provide the necessary aid. The mining industry is redirecting the processing power of 6.000 specialized computers to the Ethereum blockchain for Coronavirus research.
Leading the charge is the Binance Charity Foundation which donated $ 2 million in cryptocurrencies for medical supplies to countries that have been most affected by the virus.
In spite of everything, it would seem that the market has overcome the initial shock of the pandemic, and the crypto sector is back on track.