Financially and economically the year 2020 had been the worst in history due to Covid-19 Pandemic. However, as regards crypto industry, it was the best year by far throughout its history.
What was lacking for crypto industry, had been successfully achieved this year. It was said that only a handful of people were involved in crypto trading business. There was always a dire need since 2009 of cryptocurrencies’ mass adoption at institutional and individual levels. This need was duly filled by institutional and individual investors when the impact of pandemic enforced implementation of lockdowns worldwide.
Many suggested this pandemic to be the source of revolutionizing entire crypto industry which brought the mass-adoption instantaneously. Recently, Mike Novogratz, a well-known Bitcoin tycoon, suggested that two trends born out of pandemic had helped revolutionize crypto industry’s mass-adoption. In his interview with Real Vision, Novogratz told that the two trends were worldwide response to Covid-19 and digitalization at every level.
Elaborating upon his viewpoint, Novogratz said that it was pandemic which had actually accelerated the growth of entire crypto industry. He added that in the coming year the world would look into the past and would say the Covid-19 crisis was horrific. But some would say the crisis was an adversary which turned into an opportunity and revolutionized crypto’s mass-adoption, he added. He compared the growth of Bitcoin and Ethereum during 2020 with the past. He apprised that during the year, the returns achieved by both were @ 216% and 390% respectively.
Explaining his first point, Novogratz told that first trend was born out of governmental policies implemented to counter the effects of pandemic. More particularly, he spoke about US policies when the pandemic was at its peak.
He said that the situation forced US to cut down Federal Reserve’s interest charges and sought loans over $1.5 Billion. In addition, US had to triple its purchases of securities in an effort to support deteriorating economy. While the worldwide economies were struggling and rapidly going down, this paved the way for crypto industry’s mass-adoption. Novogratz added further that there cannot be a better time to buy Bitcoins than now.
The other trend he explained about was the evolution in digitalization which took place at every level. He said that enlargement of digital life, coupled with institutional support, led investors to use crypto wallets without an exertion. The more they became affluent with digitalization, the more it became easier for them to adopt it.
Novogratz gave an example of Zoom and explained that before the pandemic, the majority had hardly known about it. He stated that currently Zoom is an essential part of our day to day professional and normal life. It took the world a little time to understand the app and learn how to use it properly.