How Coronavirus Crisis is Affecting Bitcoin Mining Industry

Globalization allowed the success of the so-called market system, which we can define as a method of social coordination carried out through the mutual adjustment of its participants. That is instead of having a central coordinator who dictates what needs to be done all the time.

There is no cooperation between people for altruistic reasons. They do this because they find it useful to achieve their own goals. Collaboration is at the core of the market system, since only by helping others and being helped by others can pandemics such as the coronavirus be fought.

As biology shows, a billion trillion cells make up a body, and 50 billion atoms coordinate to build each of the DNA molecules. All this, without any central coordination. In short, societies resort to the use of complex interaction processes rather than the application of authority. And this is being demonstrated by the era of decentralization. It is all promoted by Blockchain technology and cryptocurrencies like bitcoin.

Coronavirus and another opportunity to enter cryptocurrencies

The global crisis unleashed by the Covid-19 coronavirus epidemic struck almost every aspect of a globalized economy. Furthermore, the interdependence threaded between various countries and industries, and it became a logistical, industrial, and social nightmare. And the global financial market was no exception: Between Monday, March 9 and Thursday, March 12, Wall Street reported a decline totaling $ 500 billion. In a market where all investors went out to burn their assets for cash, Bitcoin and other cryptocurrencies were no exception. To be updated on this subject, visit and get some valuable information. But despite appearances, this opened up an exciting possibility for those who want to join the crypto world.

The shares of the world’s largest companies plummeted, and investors went out to sell to get cash in return, regardless of the level of losses assumed. The United States Federal Reserve announced that it would inject $ 1.5 trillion in credit over the next three months to contain the situation. In the same direction, cryptocurrencies and, in particular, Bitcoin suffered a significant drop. Only last week, the leading cryptocurrency lost 50 percent of its value and touched a floor of $ 3,800. At the close of this article, the currency had recovered somewhat and was trading in a range between $ 5,000 and $ 5,500.

First of all, the price touches a floor as in April 2019, which opens a window for investors who wanted to enter but saw the asset very expensive: just a month ago, it was close to $ 10,000. On the other hand, around May 18 of this year, the number of bitcoins that will be given as a reward to miners will be cut in half. This event, known as halving, has already happened on other occasions, and the result was, in the long term, a bull market. Therefore, this combination of low price plus a near halving may be an excellent opportunity for those who want to try buying Bitcoin, wait a few months, and sell in a bullish scenario. It should be remembered that each bitcoin can be divided into 100 million parts, so almost any sum of the cryptocurrency can be purchased, it is not necessary to buy one whole.

How to buy cryptocurrencies online

The easiest way to buy cryptocurrencies is through a broker, that is, some of the buying and selling platforms that function as digital exchange houses, although, instead of selling dollars or euros, they sell crypto. In many countries, there are three reliable services for that purpose. To use them, you must be over 18 years old, register and validate your identity with a process that includes taking a selfie, uploading ID images, verifying an email, and a phone number. Discharge can take up to 48 hours.

Once the profile is verified, money must be charged to the account by transfer, or in cash. The minimum to operate is around $ 1000. And these platforms also work as wallets, allowing you to leave the crypto value stored there if you have different plans.

Although it is the simplest and fastest, this system has two cons. On the one hand, anonymity is lost, since all of our personal information is required. Also, there is some loss of control over crypto by leaving them in the hands of third parties. However, that has been solved. Once purchased, we transfer them to our wallet. With crypto brokers, while we gain ease when it comes to buying, we also lose some of the most attractive features in the crypto world.

User-to-user crypto purchase

The other method that exists is to buy directly from another user. It is possible to find a seller in more than one way. There is also a page that connects users who want to buy and sell so that they can do business outside the platform. In addition, each user has a reputation system to avoid problems. For a while now, following a regulatory change, this page has required its users to undergo a verification process. In this way, the platform lost its most exciting side.

Another way is to get into Facebook groups, which works as a channel to bring buyers and sellers closer together. The group is closed and moderately secure, and its users also use it as a channel for inquiries about cryptocurrencies in general. Also, other social media have similar groups. One of them is Telegram and its Crypto P2P.

Although user-to-user buying and selling maintain anonymity and control over our crypto, these operations can be a bit riskier by not knowing the counterparty and not knowing their intentions. Therefore, it is always recommended to do this type of transaction in public places, where it is more difficult for a robbery or something like that to happen. Besides, always keep in mind that Bitcoin transactions are irreversible and public, so once we have done it, we can rest assured that the digital asset has become ours.