We all have witnessed how the COVID-19 pandemic has reshaped our world in ways we could not have imagined. It has accelerated digitalization trends, transformed the way we work and transact, and has left governments grappling with economic challenges.
Moreover, we certainly can't disagree that in the midst of this, cryptocurrencies have emerged as a dynamic force in the post-pandemic economy, offering unique solutions to both individuals and governments.
I see this thing as an opportunity, not only for the rich countries but the third-world countries as well. And more for the second one because crypto can bring such economic freedom that we as citizens from the third world can never imagine.
I have tried to explain the evolving role of cryptocurrency in a world forever changed by the pandemic in this writing.
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Digital Payments Surge and will go upward for the rest of the time.
The pandemic accelerated the shift away from physical cash as people sought contactless payment methods to minimize the risk of virus transmission. According to a study by Chainalysis, cryptocurrency adoption for online purchases increased by 65% in 2020. Quotes from industry experts emphasize that this trend is likely to continue as people become more comfortable with digital currencies.
Financial Inclusion.
Cryptocurrency has the potential to bring financial services to the unbanked and underbanked populations. The World Bank reports that 1.7 billion adults remain unbanked globally. Cryptocurrencies can bridge this gap, providing access to financial services through smartphones, even in remote areas.
And it's happening in real time as I can see in my surroundings. Gen-Z doesn't have a bank account but sure has a crypto wallet.
Hedge Against Inflation.
Governments worldwide injected trillions of dollars into their economies during the pandemic, raising concerns about inflation. Not only BTC but other coins and tokens have a remarkable impact on this. Notable investors like Paul Tudor Jones and institutions like MicroStrategy and Tesla invested heavily in Bitcoin.
Moreover, we can see the upward number of Government Initiatives to increase crypto usage is noticeable. Remote Work and Freelancing have been a career choice after the Covid. And I'm seeing this change in real-time in my neighborhood, country as well as surrounding countries.
Crypto plays a huge role economy but as it's not something that we can call mainstream, it doesn't catch our eye. While it's impacting on a huge level on the investors' side of the economy, it's changing the economic behavior of the general individuals as well.
As we navigate the complexities of a post-pandemic world, cryptocurrencies are poised to play a pivotal role in shaping the future of finance, inclusion, and innovation. Individuals and governments need to stay informed and engaged with this evolving landscape to harness its full potential. And I hope people will come together to work on this.
