The restrictions and the lockdowns imposed due to the rapidly spreading coronavirus pandemic has impacted potentially all kinds of industries existing today and blockchain and cryptocurrencies are no exception. A recent article published by the popular tech publication Hacker Noon throws light on how the industry feels the heat generated by one of the most devastating catastrophes of today’s age.
The coronavirus outbreak, which has had a distressing ripple effect across all continents, continues to hammer almost every aspect of our lives. In fact, when the World Health Organization (WHO) triggered a universal sense of panic by declaring the dreaded disease as a pandemic, almost every industry reported the worst decline in years.
Whether it is real estate, manufacturing, equity markets, or the global commodities market, the pandemic is changing the face of every industry existing today. However, the Sunday’s report by Hacker Noon suggests that the supposedly independent sector of blockchain and cryptocurrencies hasn’t been left out either.
Blockchain and cryptocurrencies: Not so autonomous, after all
Soon after the conventional assets, like gold and oil, witnessed a crash, the Bitcoin price rate took a nosedive. Altcoins, too, followed in their footsteps and experienced all-time lows.
The report suggests that the blockchain startups are struggling to stay afloat due to the lack of venture capital interests. They are unable to attract investments, thus making it extremely difficult for them to sustain their businesses in crisis-hit times.
Although some significant relief efforts are underway, one of which is CNBC CryptoTrader host, Ran Neuner-led relief fund that aims to provide financial aid to flailing blockchain startups and the other being the six trillion US dollars ($6 trillion) impetus package proposed by the US government to help corporates amid crisis, many startups are still grappling with anxiety and uncertainty.
According to Gustav Wagner, CEO of Blockfacts, a financial data provider for the blockchain and cryptocurrencies industry, the COVID-19 outbreak has left potential investors with little or no choice as they are unable to meet and conduct a much-needed face-to-face interaction with their stakeholders. Although there is an option of holding a virtual meet-up, the overall capital in this niche market has undoubtedly decreased, Wagner added.
Social distancing demands cancellation of blockchain and cryptocurrency events
Meanwhile, as the virus ripped through Asian countries in its early stages of the outbreak, many significant cryptocurrency events in Asia either canceled or postponed their scheduled date. Gradually, the effect was felt in the Western countries too, as several prominent blockchain events, like Paris Blockchain Week, called off the event amid the growing fears.
The recent spate of panic and agony even extended to one of Ethereum conferences where notable cryptocurrency representatives were reported to be infected with the virus.
Even though some events did go as planned, through virtual screening methods, there is no denying that the organizers and attendees faced a severe financial blow due to the cancellations.
Remote working? Not a problem!
On the upside, blockchain and cryptocurrencies have encouraged remote working methods right from the beginning. And while most workplaces are struggling to cope up with the demands of their customers and other stakeholders amid work from home arrangements, many cryptocurrency and blockchain-related startups are already ahead in the game.
The perfect examples of finding a silver lining amid dark times are Italian crypto news blogs and media agencies. While the entire country is under lockdown for several weeks with no signs of recuperation, the Italian crypto news agencies continue to operate as usual and support the newsreaders and writers simultaneously.