So we’ve all probably heard of the pandemic that’s taking the world by storm — Covid-19, commonly referred to as “Coronavirus”. In this article we answer one of the questions on the minds of crypto enthusiasts all across the globe: “How will Covid-19 affect cryptocurrency?” In this article we look at Bitcoin and Particl.
Particl is a decentralised, secure, and peer-to-peer cryptocurrency on the block, with emphasis on creating an ecosystem built around privacy and anonymity, along with ease-of-use and scalability.
Particl’s mission is to empower society by fostering a new decentralized, private and democratic economy supported by its blockchain platform. This new alternative economy allows people to both earn and spend money in a completely trustable fashion as well as use and build decentralized applications that respect their rights to privacy.
Bitcoin was created out of the 2008 financial crisis and the COVID-19 pandemic is looking more and more like its first real test in a crisis scenario.
Utility, which means being able to use Bitcoin as a global currency, is key for the cryptocurrency’s survival long-term. If it is taken away, then why even hold Bitcoin? We’re going to tell you why 😃
Financial crisis shows why we need Cryptocurrencies
Bitcoin was invented in the aftermath of the 2008 financial crisis, and the crisis was a clear motivating factor for its creation.
Numerous banks and other financial institutions failed across the world, and had to be bailed out by governments at the expense of their taxpayers. This highlighted the fragility of the modern financial system, where the health of our monetary system is reliant on banks and other financial institutions that we are forced to trust to make wise and prudent decisions with the money we give them. Too often for comfort, they fail to carry out this fiduciary responsibility to an adequate degree.
Alex Laughton-Scott, Associate Director of CoinShares, explained the crisis has shone a light on the beneficial uses for Bitcoin. He posed the question ‘have the fundamentals changed?’ and then answered his own question by saying:
“The short answer would be: absolutely not. And this global setup is one that very much could show Bitcoin, Bitcoin’s uses and values in their entirety. We could be possibly witnessing a bit of a perfect storm brewing for Bitcoin in the medium term.”
Are fiat currencies becoming obsolete?
Fiat currencies are the world’s predominant form of currency today. The Dollar (USD), for instance, is a fiat currency. These (fiat currencies) are currencies that are entirely controlled in their supply and creation by a national government, and are backed by nothing but faith in that government.
The amount of money printed is based on supply and demand. The more it is needed or requested, more will be printed. What happens in the unlikely (hopefully) event that there is no demand, or not enough supply to meet the demand? Our solution? Buy crypto 😆
One Bitcoin is worth $7 147,23 at time of writing. Now imagine you had or currently owned 0.05 BTC, that would mean you have $357,36. So what’s my point? Bitcoin is an investment, one worth holding, as highlighted in one of ChainEX’s previous articles.
What effect could the pandemic potentially have on Crypto?
Bitcoin came into existence in the midst of a financial crisis. Why? Fiat currencies were volatile. Supply and demand were and still are, the factors that determine how, when and if more should be printed.
- Bitcoin is digital — you can’t physically hold it like a Dollar. This limits the spread of the virus by only allowing for digital and electronic transactions.
- If the dollar weakens, your share in Bitcoin doesn’t. It’s an investment.
- As businesses close, the markets remain open — you can still trade and make money during the lock down by registering on, and using ChainEX — a trusted digital asset exchange.
- Some employees aren’t being paid during the lock down, this allows you to take up trading as a part time gig.
- A COVID-19-induced global crisis could accelerate innovation, pressuring crypto to evolve into a complete ecosystem which offers goods and services on a large scale, and not just “money”. Imagine being one of the few that already has Bitcoin, if this were to happen.
What are the advantages of Particl?
- Passive income during and after this pandemic
- Does not collect personal information — it’s safe and secure
- Hides the participants of all the transactions
- Hides the amount that was used for a transaction
- Uses the RINGCT which provides a high level of anonymity
- Provides opportunities for developers to make it easy to build new applications
- Proof-of-Stake system
- Convenient and pleasant design
So what now?
You’ve read up on the effect of the virus on Bitcoin as well as what it could mean for the economy. So what’s the next best, or logical step? Get involved in Crypto. ChainEX, our recommended Bitcoin trading platform, is a South African digital asset exchange.
First of all, who is ChainEX?
So you’ve really never heard of ChainEX? 😕 How have you not heard of ChainEX? Even Google knows ChainEX.
ChainEX is a South African digital asset exchange that provides a platform for all to buy, sell or trade a variety of different digital assets, using the South African rand as the default fiat-buying currency for some.
What if I’m not from South Africa?
ChainEX only allows South Africans to buy Bitcoin using fiat. Other residents may only use crypto to trade crypto.
What can ChainEX offer me?
ChainEX provides you with a secure, online platform from which you can purchase and trade with different digital assets. Not only does ChainEX provide a platform for you to trade, but it also rewards you for the people you refer!
In summary, ChainEX allows you the opportunity to make money while at home during this pandemic 😄