Has COVID-19 made cryptocurrency more attractive for digital payment and investment?

Toronto.com | Veronica Appia | Feb 25, 2021

bitcoin payments - Has COVID-19 made cryptocurrency more attractive for digital payment and investment?

As countries continue to devalue their currency amid COVID-19, cryptocurrency is becoming more appealing to investors. - Pexels photo

Experts weigh in on Bitcoin, crypto resiliency

In an economy deeply impacted by the COVID-19 pandemic, citizens and businesses have been experiencing financial hardship for months and governments have been using stimulus money to create supports and aid in economic recovery.

See:  Privacy laws might prove to be a blessing in disguise for crypto

Prime Minister Justin Trudeau announced $100 billion to be spent over three years, beginning this year, in an effort to bolster the current state of the economy.

Some recipients of stimulus checks are choosing to invest money in retirement accounts like this gold backed IRA company that would help save gold and silver funds in a lifetime.

Others feel differently about giving away stimulus money in such large amounts since it devalues a country's currency, said Henry M. Kim, an associate professor of operations management and information systems and co-director of the BlockchainLab at Schulich School of Business.

This, in turn, creates a case for certain types of cryptocurrency, such as Bitcoin, to become more attractive.

"Bitcoin doesn’t act like money. What’s winning out is the notion that Bitcoin is digital gold," Kim said. "And Bitcoin, as volatile as it is, is not a currency that central banks are devaluing."

For this reason, he said, Bitcoin is great to speculate on at the moment.

See:  Future of Crypto Market Infrastructure: The Role of Custodians and Exchanges

Earlier this month, Tesla CEO Elon Musk purchased $1.5 billion worth of Bitcoin and announced plans to start accepting Bitcoin as payment for certain Tesla products, causing Bitcoin prices to surge. One Bitcoin is currently worth just under $50,000 U.S.

"I think it makes Bitcoin seem attractive, even more than it was before, and seem much more long-lasting," Kim said.

Jason Butcher, CEO at CoinPayments, a platform that allows merchants to accept cryptocurrency payments, said crypto payments are becoming increasingly more appealing to those with speculative interest and those who perform transactions.

"Those looking for cryptocurrencies as a means to acquire (and sell) goods and services are really the driving force behind this new and flourishing crypto economy," Butcher said. "Crypto payments provide a secure, quick and low-cost way to send and spend value online. It is cheaper and more seamless than traditional providers, and that is why people are starting to notice."

His merchants use crypto payments for a wide variety of products, including electronics, groceries, luxury items, vacations and more.

See:  How Cryptocurrency is changing Fintech

Kim said while there is not a lot of people who can currently buy with crypto, as many merchants have not made the switch yet, some businesses and municipalities are starting to get more innovative.

"As of about a year ago, Richmond Hill and Innisfil actually began to accept property tax in Bitcoins," he added.

Regarding the effect COVID-19 has had on cryptocurrency's appeal, Kim said that looking back to SARS 2003 can provide some insight.

"In China (at the time of SARS) people were very afraid to pay for things in cash and hand out things that give up possible germs. That, in part, (paved the way) for the development of WePay and Alipay in China," he said. "There was a whole bunch of other factors, but certainly SARS then was a factor and if you think about it, those are not exactly digital currencies, but they are similar."

Butcher agreed.

"Today, people are looking at more efficient and effective ways of sending value around the world while limiting the possibility of spreading infection through the use of physical currency or devices," he said "So, it’s pretty clear that the opportunity to view cryptocurrencies as a possible solution has helped."

Continue to the full article --> here


NCFA Jan 2018 resize - Has COVID-19 made cryptocurrency more attractive for digital payment and investment? The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Has COVID-19 made cryptocurrency more attractive for digital payment and investment?FF Logo 400 v3 - Has COVID-19 made cryptocurrency more attractive for digital payment and investment?community social impact - Has COVID-19 made cryptocurrency more attractive for digital payment and investment?
FFCON23 Fintech Funding Deal Flow - Has COVID-19 made cryptocurrency more attractive for digital payment and investment?

Share for a Chance to Win FREE #FFCON23 Virtual Event Tickets!!


As a part of the lead-up to this exciting event, NCFA will be holding a social media contest for the chance to win FREE tickets to attend. In order to be entered to win, all you’ll need to do is share any of our event posts or create one of your own through your Facebook, Twitter, Instagram or LinkedIn personal or company page, tag @NCFACanada, and use #FFCON23. Winners will be contacted prior to the event. We look forward to seeing you there!

FFCON23 Share on Social for Chance to Win Free Tickets  - Has COVID-19 made cryptocurrency more attractive for digital payment and investment?

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Has COVID-19 made cryptocurrency more attractive for digital payment and investment?




 

Leave a Reply

Your email address will not be published. Required fields are marked *

eight + 9 =