While 2020 was very challenging for many, it was also the year that cryptocurrency became popular. Global confinement forced many to turn to day trading for extra income. Robinhood (NASDAQ 🙂 trading apps saw an unprecedented trading volume, new accounts were signed up and trading consideredly increased through the lockdowns.

The COVID-19 epidemic has seen a huge increase in investments in cryptocurrency. The total market capitalization of cryptocurrency was just below $200 billion at the close to 2019’s end. It surpassed $2 Trillion in September 2021.

The Lockdowns Drive Interest in Crypto

Many young people who were left at home due to severe restrictions from the virus inspired an interest in digital assets. A 22-year-old student from India who wants to keep their identity hidden stated that if it wasn’t for the pandemic, they wouldn’t have had the opportunity to learn more about crypto.

“In March 2020, due to the lockdown I had a lot of free time. As crypto became more widely recognized, news outlets began to cover it. After researching them, I discovered about hardware wallets. These wallets allow you to have complete control of your funds and reduce the risk of losing coins.

Because I had the luck to have the ability to invest in cryptocurrency and be financially secure during the pandemic I didn’t fear losing any of my savings. After I bought crypto, I transferred them to my hardware wallet. In just 3 months my portfolio doubled. It was a great feeling and I bought even more cryptocurrency. This is how I started investing into crypto out of my own pocket,”
Reddit user DailyCoin shared the following student’s message with them:

Cryptocurrency consulting company CryptoConsultz was founded in 2017. It has seen an increase in its clients over the last year.

“While the demand for CryptoConsultz services is often dependent on market trends, we have certainly seen exponential growth in the volume of individual consultations we conduct. We’re also seeing a variety in the types of consultation services we provide as compared to years past, with crypto security being a hot topic,”
the company’s founder, Nicole DeCicco, told DailyCoin in an email interview.

You could say that the crypto industry, regardless of its pandemic, was ready and able to reach a tipping point for investor sentiments towards digital assets. A more plausible explanation is that we’re seeing a rare combination of circumstances dramatically impacting the markets and driving the growth of the industry through an inpouring of both retail and institutional investments, DeCicco shared.

Uncertain Times Cause Cryptocurrency to Gain Popularity

According to DeCicco, it’s not the first time in modern history we’ve faced financial uncertainty, but unlike economic downturns of the past, we’re seeing an across-the-board unpredictability when dealing with a crisis of this magnitude.

Even traditional investors have to look at alternative investment options because hyperinflation has forced them to reconsider their investments. Even though these investors were skeptical of cryptocurrencies two years back, they have to review their positions and reevaluate how they view digital currency.

A more prominent factor that could drive increased interest in cryptocurrency is the economic impact payment, also known as stimulus checks. Americans seeking to invest in cryptocurrency found they had more time and could have engaged with their peers through social media. This, coupled with a trend towards platforms that are easier to navigate for the everyday user, has increased access to such investments and moved the industry away from an elite tech-savvy minority towards an all-encompassing ecosystem that’s much more welcoming to the majority.

Pandemic Pandemic Cryptocurrency Benefits

“Investing in crypto turned out to be the best decision I’ve made in my life both financially and personality-wise. In my youth, I was an impulse-driven kid and would often spend money on foolish things in order to obtain instant gratification. But now, I think 2-3 times before even I spend my money,”
According to the crypto-enthusiast of 22 years old,

CryptoConsultz CEO says that crypto indeed has many benefits for individual participants. We’re hearing more stories of middle-class investors who have accrued life-changing amounts of wealth over the past year. Rather than “get rich quick” schemes, investors are starting to see the true value behind the tech and how blockchain will innovate and disrupt many traditional models that have become stagnant.

The excitement surrounding cryptocurrency has led many of our clients to reevaluate their investment strategies and brought more focus to their overall financial health, which regardless of one’s acceptance of digital currency, has obvious benefits.

“Crypto has also opened the narrative around decentralized finance and governance models. Our financial vulnerability as a society has been made clear. This has caused some to feel distrust. Consumers and investors are looking to decentralized models as an answer that might provide more stability and predictability, even during times of crisis,”
DeCicco summarized.

Flipside

• Despite the fact that the crypto pandemic is a major reason why it became so popular, there were many other factors.
• This pandemic saw people lose their money because they didn’t have enough knowledge to invest in crypto.

What are the reasons to care?

The pandemic gave people more freedom to study the topics they are passionate about, and allowed them to spend more of their time doing what interests them. In 2020, crypto interest grew steadily due to financial problems and mistrust of governments.

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