COVID-19 Is Changing Bitcoin Usage
The crypto market looks pretty good today with Bitcoin trading in the green.
At the moment of writing this article, the most important coin out there is priced at $6,785.55.
Despite the high market volatility and the global crisis triggered by the coronavirus pandemic, Bitcoin is still expected to perform well, especially since the halving event is just around the corner. Bitcoin’s halving is scheduled for this May.
Bitcoin trends are changing
In a brand new report that has been published on March 30, Chainalysis is detailing how Bitcoin spending trends in three areas have changed or reversed.
These areas include merchant services, gambling, and darknet marketplaces.
Chainalysis reported that a change in trend is showing resilience among Bitcoin merchant services in the current economic crisis.
According to the online publication Cointelegraph, an example is the fact that the company’s data for Bitcoin spending using merchant services from July 2019, until March 9, 2020, is revealing that there was a strong positive correlation between price and expenditure.
In other words, the more Bitcoin is worth, the more likely holders are to spend the coin, of course.
It seems that Bitcoin holders are indeed spending less during the king coin’s recent decline in value, but it’s worth noting that this decrease is less dramatic than expected.
“This is because, since the outbreak, the strength of the correlation between price and behavior has itself also weakened,” Cointelegraph notes.
We recommend that you head over to the original report by Chainalysis and check out all the available data in order to see how Bitcoin’s usage is changing.
Interest in Bitcoin is on the rise
It’s also important to note the fact that amidst the global crisis, it seems that interest in Bitcoin and cryptos is on the rise.
The king coin is seen by more and more individuals as the best safe haven during these tough times that we live in.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.