Experts from DBS Group Holdings analyzed the impact of the pandemic on cryptocurrencies.
The coronavirus pandemic has accelerated the adoption of bitcoin in the world. This conclusion was made by the experts of the Singapore holding company DBS Group Holdings. Analysts presented their point of view on the subject.
The experts studied two phases of bitcoin: before the pandemic, and after. According to their observations, cryptocurrency was more often used for speculative purposes before the coronavirus. After the pandemic, according to DBS, market participants began to pay more attention to the limited nature of BTC and the possibility of using it for savings purposes.
It is noteworthy that the interest in the new financial asset accompanies the growth in the number of digital payments in the world. Asia was the leader in this area, showing the growth in the number of electronic payments.
Data: DBS Study
After the choice of quantitative easing policy by the American regulators, the researchers noted, people wondered about the advisability of keeping savings in US dollars. Also, market participants began to study the possibilities of investing in gold and other savings assets, which, among other things, include bitcoin.
Change in trading volumes of bitcoin over the years and indicators of cryptocurrency capitalization. Data: DBS Study
“Ever since central banks around the world have opted for quantitative easing to combat the economic impact of the Covid-19 pandemic, interest in cryptocurrencies, along with gold, has resurfaced,” the DBS study said.
Earlier, Forbes analysts also came to the conclusion that the pandemic has a positive effect on the position of bitcoin. US Congressman Tom Emmer spoke in more detail about the benefits of the coronavirus for BTC.
Representatives of other financial institutions, including the team of the Singapore digital asset bank Sygnum, support the DBS theory. The company’s specialists drew attention to the fact that the pandemic has fueled the interest of various groups of investors in the possibilities of investing in cryptocurrency.
“Now that banks are back on track, we are seeing a significant increase in requests from local and international financial institutions for help setting up B2B services so that their clients can start investing in digital assets,” said a department manager of Sygnum Bank Customer Service Martin Burger.
At the same time, DBS research showed that investments in bitcoin (short-term and long-term) occupy only 3rd and 4th places among the reasons why users choose digital assets. Most often, people use cryptocurrency for payments and settlements on online orders. Also, people choose BTC as they are interested in technical solutions involved in the new financial instrument.