The present situation of the world and COVID-19 is driving the nascent demand in the world for bitcoin, stablecoins and other cryptocurrencies. U.S. currency is deemed to be a vital investment to billions of non-Americans. Bitcoin and stablecoins are attractive when you don’t trust your local currency and can’t get dollar.
Think of Fed’s QE mission program for the shortage of dollars leading swap lines to be created with 16 central banks in industrialized countries in March. COVID-19 at that time triggered a kind of global bank run into dollars. Debtors in European and Asian financial capitals who’d borrowed in dollars and scrambled to buy them to cover margin calls on their collateral. Fed has done it to meet the world’s demand.
While the shortages are still visible in several emerging markets, the ray of hope was lightened in U.S. stocks. The problem is serious in those countries where dollar has the highest priority instead of locals. The scenario is existing in Nigeria currently where the collapse in the price of crude has combined with the global dollar shortage to create a real USD crisis.
Adoption of a different way-microtasking
In Venezuela, constraints on dollar usage has been unofficially abandoned leaving problems to the home-bound Venezuelans who are not finding the dollars they need and to some of them Bitcoin is offering a solution. As reported, USD bills are getting like a rare thing.
A different way is in use by the people like they are doing microtasks means connecting to a website where one can earn 10 satoshis for doing different things. Crowdsourced microtasking has become a money-earner for people in the developing countries and it is due to the developments in crypto industry.
Opening of Stablecoins
In that kind of situation, stablecoins can be a solution. The CEO of Ripio, Sebastian Serrano, has seen an active demand for the platform’s stablecoin offerings. The solution can be like an asset which mimics like dollars as said by Alejandro Machado adding solution can lie in leveraging the liquidity that bitcoin can provide. Whether these various solutions will achieve mainstream usage rates is to be seen. The developing world needs cryptocurrency in many of its cases. Maybe, mass adoption will take time but similar patterns across other emerging market regions in time of the pandemic shows the importance of cryptocurrency of the moment.
A proxy measure of U.S. prosperity
The Dow Jones Industrial Average is often used as a proxy measure of U.S. prosperity. From May 25 to June 4 the Dow gained 7.4% marketing the best 50-day performance for U.S. stocks ever. They are up again now as of Friday afternoon after some surprisingly good unemployment numbers.
CNBC pundits said that the stock market was yet up even after high rising death tool by COVID-19 and deadly protest across American cities because of racial inequality. So in this time, maybe there is a n eed of alternative.
The Global Town Hall
People are using Zoom for video conferencing during the lockdown period. But very recently the CEO of the company said non-paying customers wouldn’t get privacy-protecting end-to-end encryption as they want to work together with the FBI. Some people use Zoom for bad purposes is the reason. But unlikely to that, there were comprehendable privacy concerns among the crypto community. But the Zoom’s activities struck Abra CEO Bill Barhydt mentioning of you buy a Zoom subscription, it won’t be able to snoop on your calls, but it will know who you are.
During the large protest surrounding the killing of George Floyd, a person namely Neeraj Agrawal was standing with a banner where ‘’Bitcoin will save us’’ was written. His image with the banner soon went viral on internet and the person started being thought of as Crypto Twitter’s meme king.