The after math of the global COVID-19 pandemic is coming as a looming darkness and global economy is going to be smashed more than slightly. China’s gross domestic product took a heat and shrank for the first time in 44 years. But with the likelihood of termination of the pandemic, shops, offices and factories are now starting to reopen. But perturbation is still vivid in the mind of people.
Bitcoin (BTC) and other cryptocurrencies have become failure to prove them amid such devastating situation like COVID-19 running. So in this situation there can be both good remarks and backlash regarding crypto. People can come in favor of crypto just because of fiat’s altering interest rate and uncertain inflation. In case, the inflation rate stairs up, people can start seeing crypto.
Many governments have taken different steps to ease their monetary policy like central banks lowered their interest rate during coronavirus crisis and investors who eke out greater returns might turn to the world of crypto.
Serious intervention of governments around the globe in the economy is justified by the conditions this crisis dictates. Governments have segregated many sectors to remain open amid quarantine and in this situation cryptocurrency can be expectancy.
While other banking services were failure to be run, digital currencies have snatched away the mind of central bankers as alternative cash.
The China government has shown a high interest in blockchain technology and set a course for the country to grab the opportunity but the initiative has been slowed down by pandemic. The initiative was followed by some other initiatives like consortium chains and a central bank-issued digital currency.
A great proclamation came from the state in the form a national blockchain-based service network which was scheduled to launch in April expecting to deduct the costs of doing blockchain-based business in China by 80%.
Chinese authorities like the People’s Bank of China are developing their own digital yuan. China kepr researching over this intellectual race during this critical situation of the economy while many giant multinational companies including Microsoft, Walmart, Mastercard, Sony and Intel had applied for a total of 212 blockchain patents as of the end of March, their number of patents was inferior to the number from Chinese companies in 2019.
Ant Financial also announced its new consortium chain called OpenChain and the name of their platform is Alipay which is one of the largest mobile payment processors in the world. The functionality of development of Chinese Blockchain industry was also running amid the pandemic.
During this COVID-19 crisis some platforms managed to mitigate the risk whereas some couldn’t. Platforms which managed well are being described below:
VeChain took the pandemic-challenge as opportunity to focus on its core software offering. Because they well understood that the virus had an irresistible impact on client development. Though in this critical moment, people have a greater appetite for buying products online and mobile applications, VeChain especially focused on supply chain management on those products that are related to consumer daily life.
The CEO of VeChain, Kevin Feng, believes that this crisis will inspire people to make more investment into new technologies.
Seeing the outbreak in China, Ontology undertook a work-from-home strategy and depended on its global network of offices and partners to continue operations with minimal disruption that helped Ontology to maintain stability.
Ontology is highly determined to fulfill its 2020 roadmap as it has several milestones including cross-chain functionality with Ether and Bitcoin. To mitigate the crisis, Ontology joined #cryptoCOVID19 campaign and sent masks to worldwide blockchain charities to put the crisis to an end. The company was also active in offering online courses.
Amid the outbreak, around 5% workers of PlatON were locked down and out of working but the rest of the works was on their duty. The team made an online working environment to work remotely and to make sure it was on track.
As per their belief, the decentralized nature of blockchain helped them make the transition smooth. To make sure the speed of operations, they kept their technical upgrades running.
QuarkChain being a technology-driven company somehow has managed to keep up operations while its 40 employees spread around the world have continued to work on an infrastructure that connects both consortium and public chain technology. They are providing the government with multiple project solutions for the public health system including blockchain solution.
Some Global Cryptocurrency Exchanges
The sustainability of outside business was hampered by the pandemic but it threw a huge opportunity to online business models.
It was magnificent to see the response of OKEx to the ‘’Black Thursday’’ market crash on March 12. The trading system kept up zero clawback and withstood the volatility and chaos in spite of a huge decline in the prices of crypto. OKEx aims at augmenting crypto derivatives products and a range of services now.
During the crisis, Binance with its strong user activity and increment in its team by 100 employees across all regions reported a sinewy first quarter of performance. Binance involved itself in charity and donated $1.5 million worth of medical supplies to hospitals, medical centers etc.
Venture Capital Firms and Incubators
Thinking a number of enterprises are struggling to raise capital, Shanghai-based venture capital firm Hashkey Capital thought it’s a great opportunity to find better value in the current market. As per their thought, they may raise their bar higher for the operational strategy for recent investments and focus more on the commercial maturity and cash flow of the project. It has become significant to venture capital firms and incubators to think because as access to cash and investments can be the difference between insolvency and survival.
With an increment in trust in the blockchain space for now, China-based technology incubator New Chainbase was working to accommodate many of its projects. The operations of Fenbushi Capital, a global industry player, working in a decentralized manner have remained quite stable.
Blockchains with more opportunities in enterprise situations like traceability of medical supplies can help government ward off possible counterfeit medical device products.
Mining community is in uncertainty because of upcoming halving and microeconomic instability. For example to say that besides Bitmain exploring substitute methods of working to meet demand for its Antminer products, the company is following professional advice for dealing with the pandemic. Adapting to the changing environment and keeping operations continued is the challenge to the miners. They must work maintaining efficacy.
8btc and Odaily, two Chinese blockchain media sites, are much hopeful about the industry moving forward as people have more free time on their hands. With a healthy cash flow, the present situation can be beneficial to online companies.
In that case ChainNode can be taken as example like how the company moved quickly to develop an online product release conference service with an eye to helping business partners bring their offline conferences and product proclamations online through live video on the platform. China is stepping to 5g technology so it’s a great chance. During the pandemic, Odaily shifted their operations to online model. Views have been increased by 20%.
What will be next?
Decentralization process made the world embrace remote working by its nature. Technology has taken many business processes ahead but staving in other industries made the implementation of enterprise services and fundraising hard. Many businesses have gone online and how promoting of business will be done that depend on marketers.
Industry players are not panicked at the recession of current economy rather than that they are to see the long-time effect. They are searching for the potentiality of digital currencies against monetary distribution. It is hoped that the adoption of blockchain technology by China’s government and central bank will make industry players active in near future and it’s a sweeping belief.