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Could Bitcoin and Blockchain Be Affected by the Coronavirus?

By Geoffrey Gardiner   Feb 09, 2020 2 Min Read

Coronavirus Bitcoin feature.jpg

As blockchain has spread in the global industry, the coronavirus has begun to follow. Unfortunately, rather than offering freedom and independence, the disease brings uncertainty and risk. 

To help stop the spread of the virus, many businesses are implementing measures to aid and help employees avoid contact with others, as the disease is said to be passed on through body substances found in sneezing and coughing. Large companies have been asking people to work from home and even ask if anyone would like to leave certain high-risk countries and work remotely from their birth country. People in Hong Kong, China, and other Asian countries would be largely at risk, and the offer to leave is certainly important to factor in. 

With workforces all feeling the effects of the problem, it is certain that businesses will be feeling slowed down processes and overall performance as well. 

Blockchain mining and the Bitcoin platform

Economies will be hit hard, feeling effects from staff and sourcing as well as customer dips in spending. Major businesses including even Apple, are expected to incur massive losses to growth and overall earning during this period, with a senior analyst stating, “Were it not for the coronavirus, the sustainability of the performance in China would not be called into question … (It) is an important risk that investors need to monitor.”

Businesses expect to see major roadblocks and problems from the virus, but this is not just a problem for the very best and rich companies. Small to medium businesses are most at risk, as cash flow and month to month income can be crucial to survival. Some businesses were already struggling in the current economy and a setback in spending from customers due to fear would be the final nail in the coffin. 

Blockchain mining, despite all of the problems, is operating and expected to continue at close to normal due to machines being the main source of power providing Bitcoin and all other cryptocurrencies the foundation to run. 

Mining factories require and usually have limited employees, leading to quick turn around and machine maintenance. Reports did share that some businesses waiting on new computing chips and supplies have needed to adjust, but that most facilities have operated as normal.

If the coronavirus does continue to cause shortages and provide more restrictions, it is certainly possible that all areas of mining would come under attack, due to the upkeep of machines and parts. 

During the past few weeks, the crypto markets have continued to grow. Bitcoin, as well as other top currencies, continue to hit yearly highs in spite of viruses and health fears. 

With the cryptomarket showing strength, maybe it will be able to outlast this latest health scare and not follow other traditional stock markets that have seen a sharp decline, showing a 9% drop across Chinese Indexes. 

 

Image via Shutterstock

About the author

Geoffrey Gardiner   
Geoffrey is a computer programming and media honours major. He started his career with the largest network provider O2 Telefonica in Europe. After 5 years Geoffrey moved to Asia and entered into the crypto space. From 2017, he has been working with many projects and learning the foundations of Blockchain. Geoffrey continues to work with exchanges and publish content. Publications include: Unidax Exchange Bitboycrypto Coinninja Blockchainnews Altcoin magazine Cryptomarketnews

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