During the pandemic, the demand for cryptocurrencies increased sharply, and the price of the most popular of them, bitcoin, doubled on the largest cryptocurrency exchange by trading volume.
In 2020, world markets faced unprecedented volatility and instability. In the face of global economic uncertainty and inflation, traditional assets suffered due to the impact caused by COVID-19 and people around the world have increasingly looked to bitcoin and cryptocurrencies as an alternative asset and a way to conduct international transactions. in an unprecedented way, which raised this market to a new level.
COVID-19 has only highlighted the macroeconomic challenges facing the global economy, the Binance leader believes. As a result, “there is a greater public understanding of inflation and how businesses and individuals could be affected. This year we have seen several high-profile cases of institutional investors adopting bitcoin.” As an example, he relates that recently, Microstrategy became the first publicly traded company to hold cryptocurrencies in its treasury reserves. “They now have 70,470 BTC (…) in their treasury reserve.”
On the other hand, Square, the payments company founded by Twitter CEO Jack Dorsey, recently announced that it acquired $ 50 million in bitcoin. JP Morgan strategists released a report stating that Square’s investment will result in “other payment companies facilitating client investments in bitcoins or risk being left behind.”
Cryptocurrency is an advanced sector and its development is very fast, but regulation in many regions is still at an early stage. “I believe regulation is necessary and everywhere wants it. It actively promotes innovation, sustainability for an open market and its development.”
In the context of the pandemic and self-isolation, online scams actively developed in 2020.
“The total loss to fraud has decreased, but the number of cases has actually increased. There are more things to consider here besides the pandemic, although spending more time online increases the chances of being exposed to scams.”
By Orlando G.