Our Content Writer Clara Mouawad sat down with long-time crypto veteran and co-founder of Edge Wallet, William Swanson for a brief discussion about how cryptocurrency will shift as a result of corvonavirus.
Here’s what William has to say about COVID19’s affect on cryptocurrency:
Crypto is pretty volatile. A 10% gain or loss would be devastating to a stock market, but for crypto that's a normal day's change. Although crypto has fallen about 50% due to the virus, that's a pretty normal swing for these types of things. From the peak at 2017 at $20K to the bottom in 2018 of $3k is like a 6x difference, so a 2x difference is like... meh, not so bad.
In the medium term, governments are committed to printing money. The Federal Reserve system is buying assets at an unprecedented rate to prop up the market, and the government is talking about bailouts, massive unemployment benefits, and "helicopter dropping" $1000 checks to every U.S. citizen. These activities are designed to keep the market moving, so businesses don't have to shut down.
To complement William’s thoughts, here is a bit of additional news about cryptocurrency and COVID19:
- Bitcoin, one of the most well-known cryptocurrencies took a huge hit in early March because of the COVID19 pandemic. (The Motley Fool)
- But once the Fed announced a program to support markets, bullish Bitcoin activity returned. (CNBC)