How Coronavirus Affected the Cryptocurrency Market

Slides with Zachary Deurloo

The presentation explains how COVID-19 affected the cryptocurrency market and how cryptocurrency works. The information given in this presentation is not financial advice. So how did the coronavirus affect the cryptocurrency market?

According to CoinGecko, a digital currency and information platform, in March of 2020 the cryptocurrency was at an all time low for the time being. Using CoinGecko to track the prices of various cryptocurrencies over the next twelve months. A significant amount of change can be seen from March 2020 through March 2021. With the overflow of money throughout the United States specifically the money had to go somewhere. People who were financially stable whenever the stimulus checks were handed out had to put the money somewhere. With the introduction of a cryptocurrency known as Bitcoin, established in 2009, investment in cryptocurrency was a goldmine to an educated investor.

To obtain this information on various cryptocurrencies explained throughout the presentation electronic sources such as websites were used. Many electronic sources are seen as good sources but many electronic sources are falsified to give the wrong information to an investor.

The information given to the audience is important due to the fact that many people are not educated on the endless opportunity that cryptocurrencies give to an individual. Cryptocurrencies give the individual security from banks and other institutions. The United States dollar is losing value daily. The amount of money that was printed in 2020 is now no longer backed up by gold meaning that the United States Dollar is “worthless” in a sense. There are too many American dollars circulating throughout the USD market decreasing the value of the American dollar.

With cryptocurrency being so new many arguments can be made to not get involved in digital currency. The individuals that think this have not done research on projects behind some cryptocurrencies. Many cryptocurrencies have phenomenal projects behind them. If someone did more research before jumping to conclusions digital currency would be seen as the next gold rush. This is just one argument but many others could be made when talking about digital currencies.

Bibliography

Conlon, T., & McGee, R. (2020). Safe haven or risky hazard? Bitcoin during the COVID-19 bear market.
Finance Research Letters, 35, 101607.

Demir, E., Bilgin, M.H., Karabulut, G. et al. The relationship between cryptocurrencies and COVID-19
pandemic. Eurasian Econ Rev 10, 349–360 (2020). https://doi.org/10.1007/s40822-020-00154-1

Onali, E. (2020). COVID-19 and stock market volatility. Available at SSRN:
https://ssrn.com/abstract=3571453 or https://doi.org/10.2139/ssrn.3571453.

Takyi, P. O., & Bentum-Ennin, I. (2020). The impact of COVID-19 on stock market performance in
Africa: A Bayesian structural time series approach. Journal of economics and business, 105968. Advance
online publication. https://doi.org/10.1016/j.jeconbus.2020.105968


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