2020 has already proved to be quite a roller coaster ride for all of us! Although things might seem a little down at this moment for most industries, the same cannot be said about disruptive technologies and non-traditional ways of payment like cryptocurrencies. The way traditional currencies are bearing the brunt of this pandemic, this seems to be the right time for cryptocurrencies to stake a claim.
The rise of cryptocurrencies for e-commerce
With the starting of the Covid-19 pandemic, the way businesses function around the world has changed and will continue to change. There has been a significant rise in e-commerce triggered by the demand for contactless and cashless transactions. And this, in turn, has created opportunities for using various cryptocurrencies – especially Bitcoin, and Ethereum. In this context, it must be mentioned that groundbreaking platforms like CoinLinked have essentially launched during this tragic time, as a new way to revolutionize the use of cryptocurrency for e-commerce
Going back in history, we know that pandemics have occurred earlier as well. However, two things have always been associated with pandemics – the death of a large number of people and the destabilization of economies.
The 21st century has been moving constantly towards digital transactions and the use of paperless money. This has helped many countries to reduce the impact of the pandemic to a certain extent by eliminating the need to visit markets and enforcing “social distancing” which has indeed become the new normal. Home delivery of essentials via e-commerce has made things easier beyond words.
What makes digital currencies more viable?
The next thing that was to be addressed was the weakening of traditional currencies due to the impact of this pandemic. With businesses being affected globally, various countries are experiencing weakened economies. Traditionally, during such tumultuous times, people used to rely on gold reserves. Gold has thus far provided people with a sense of financial safety in making investments since it tends to hold its ground. However, it must be noted that even gold has not been completely independent of the depreciation of the economy. This is evident from how the price of the metal has shown changes since the effect of Covid-19 started telling on the economies.
Experts say that cryptocurrencies are weakly correlated to the current market trends and the economic slowdown has not much impacted their value. And in fact, cryptocurrencies like Bitcoin have risen and shown great resilience towards the feeble global economy.
Both cryptocurrencies and gold have been strong contenders of being safe investments. But digital currencies have a clear edge above gold because, gold needs transportation and logistics to be available, whereas there are no such requirements for cryptocurrencies. Cryptocurrencies are virtual and accessible to whoever is authorized to use them.
With the growth of e-commerce and the tendency to invest in cryptocurrencies, this time is ideal for these alternative currencies to make a mark. And with the help of new platforms like CoinLinked helping to boost the use of digital currencies, it is just a matter of time before alternative currencies become the dominant player in hassle-free online transactions.
