How Covid-19 Impacts Blockchain Technology and Cryptocurrencies
Out of the coronavirus pandemic will develop a new digital society status quo — one that will stimulate significant technological advances that are already underway. Among the many important innovations that the pandemic will push forward are blockchain and cryptocurrency.
In 2020, blockchain will proceed to develop in the finance sector, ahead of other industries. Applications such as food tracking, goods authentication, and sensitive data storage include notable regulatory work to tie real-world objects to their tokenized equivalents.
The most important breakthrough in this area that we’ll discuss is the employment of blockchain’s fundamental technology to sovereign currencies. China might well try an experiment in a model city like Shenzhen this year, and Sweden is another country involved in this possibility.
There will be larger consolidation in the blockchain space. Many companies weren’t equipped for the crisis, whether in terms of infrastructure or their financial arrangements. Well-prepared startups will be stimulated as a result.
Cryptocurrencies will become frequently utilized as non-correlated investment options. If you see at the current market crisis accelerated by the coronavirus, cryptocurrencies, and the stock market were only correlated for a little over one week. Bitcoin’s drop was originally a liquidity issue — gold had the same behavior in that period — and it immediately became obvious that the currency was oversold. The markets are once again uncorrelated. This will stimulate additional interest in blockchain-based financial instruments.
It’s entirely possible that, by the end of the year, we may perceive what mass adoption will look like. The sort of services and tools that will be utilized extensively in the future will likely already be available this year.
With people staying home like never before, more online gaming will undoubtedly occur globally at scale. This will occur in the rise of in-game digital currency usage and associated blockchain technology.
Contemplate what sort of games will notice an expansion in popularity. People staying home will occur in a massive improvement in casual gamers — those who play simple games on their smartphones or tablets, rather than severe hobbyists with gaming PCs. These games are often created by small teams and can be extremely beneficial given the size of the casual gaming market. As a consequence, there’s a lot of incentive to seize the opportunity.
It’s also not challenging to guess what will be famous: party games for people in quarantine who want to have fun socially; however can’t waste time together. It’s simple to include blockchain in these kinds of games. The most apparent use is for in-game currency. But it’s also feasible to recognize non-fungible tokens as digital collectibles, either as special prizes or for people who want to customize their game world.