The Covid-19 pandemic is changing Bitcoin use in an "unpredictable" way.








Leading blockchain intelligence firm Chainalysis has discovered that the COVID-19 pandemic and global economic crisis are affecting Bitcoin users' habits in surprising ways.


In report Just announced on March 30, Chainalysis details the trends of Bitcoin spending in three areas of commercial services, gambling and the darknet market that have changed or even been completely different.




Weak correlation could be advantage for Bitcoin trading services


According to Chainalysis, such a change trend shows the resilience of Bitcoin trading services in the current economic crisis.


For example, the company's data on Bitcoin spending by commercial services from July 2019 to March 9, 2020 showed a strong positive correlation between price and spending: the more valuable Bitcoin is. , the more holders spend it.


Since COVID-19 broke out, this positive correlation has weakened by about half resulting in a reduction in total spending.


Although this indicates that Bitcoin holders have actually spent less during the recent downturn, this reduction is less dramatic than expected. Because since the outbreak, the power of the correlation between price and behavior has also weakened.


While Bitcoin price declines continue to lead to a reduction in spending, the index does not drop too much compared to the increase in the pre-pandemic period. Weak correlation means that prices do not determine consumer behavior as strongly as before.


bitcoin


Bitcoin usage level (7/ 72019— 27/ 3 /2020) | Source: Chainalysis blog


The darknet market is bleak


Most noticeable of all is the user behavior changing across the darknet markets, often with only a weak negative correlation with Bitcoin price. However, since the outbreak, this correlation has reversed and increased sharply - resulting in a significant reduction in darknet market revenue.


Chainalysis points to bonded factors to explain this trend, noting that illegal substances like recreational drugs may be harder to find due to the disruption of supply chains around the world:


"The report recently pointed out that Mexican drug gangs are having more difficulty in sourcing fentanyl, because the province Hubei in China - global fentanyl mall - has been hit hard when by is the mind translate. Such disruption can hinder kBusiness skills of the vendors for the darknet market.


In terms of gambling, the positive correlation with Bitcoin price has been adjusted to zero since the beginning of March 2020 (i.e. no relationship), signaling that there does not seem to be a clear impact of the pandemic. for gamblers' behavior.


Chainalysis closed its report with a view that China is slowly recovering from the domestic COVID-19 crisis, and the darknet activity is now also returning.


In January 2020, report to Chainalysis disclosure The volume of electronic money flows on the darknet market is doubling for the first time in 2019 after 4 years.


Paxful survey results show that India is very enthusiastic about crypto


The Paxful Bitcoin peer-to-peer market has conducted a survey of the future potential of cryptocurrencies in India.


The survey highlights industries that are set up to promote adoption and the general mentality of Indians aged 18 to 55 years for digital assets.


India recently lifted its cryptocurrency ban, opening access to more than 1 billion people. Before lifting the ban and follow data Recently Paxful, the Indian mentality surrounding digital currencies is in contrast to the government.


The peer-to-peer trading volume in January was more than 3 million dollars.


According to a March survey, 93.8% of respondents invested in cryptocurrencies before lifting the ban in 2020, with 90% holding Bitcoin and 44% holding ETH.


More than 75% of respondents find it easy to transfer money via cryptocurrency, bypassing the legacy banking system that is considered corrupt.


bitcoin


The potential of cryptocurrencies in India | Source: Paxful


According to the statistical, about two-thirds of the respondents said that cryptocurrencies are the way to financial freedom.


In the world that P2P economy has promoted including finance, the survey results are in line with global psychology that cryptocurrencies have the ability to provide financial access to anyone who cannot participate in the system. traditional banking system.


The majority of respondents in India concur with that view.


The beneficiary industries, regulations OK encourage


More than 60% of respondents said that cryptocurrency businesses will thrive after lifting the ban, in which the retail sector will also benefit.


Indians seem to be willing to accept the regulation, with three-quarters of the interviewees believing that the KYC regulation is critical to the continued success of digital assets.


The future of cryptocurrencies in India looks bright, with 40% of those surveyed declaring their intention to invest in cryptocurrencies more than any other investment option.


Stocks and bonds followed at 30%, real estate and gold fell 14%.


With a sense of excitement in India, Paxful CEO Ray Youssef said he was "very interested in how they use their financial resources on a current and future basis".


Thuy Trang


According to AZCoin News




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