Coronavirus Impact on Cryptocurrencies and it’s Future

Coronavirus Impact on Cryptocurrencies and it's Future Blog by
All you need to know about Cryptocurrencies

There are many investment options available to the common investor in India. Maybe it is in the form of the Stock market – through Share or Equities Market, Gold, Mutual Funds, Bank Deposits in the form of Fixed Deposits, and Recurring Discounts. Since the past few years, Bitcoin has emerged as a Cryptocurrency as a form of investment tool in India. It was invented and implemented by mysterious Satoshi Nakamoto who integrated many existing ideas in 2008. He was responsible for creating the majority of the official Bitcoin software and was active in making changes and posting technical information on the Bitcoin.

ALSO READ:- COVID-19 (Corona Virus) Vaccine FAQs: All Your Questions Answered In 3 Minutes

What is Bitcoin?

Bitcoin is a digital currency that was created following the market crash.

  • It is a digital asset designed to work as a medium of exchange
  • It is one of the biggest cryptocurrency in India
  • Value of the Bitcoin is dependent on the trust of the investors and performance compared to other Cryptocurrencies
  • Investors who want to trade Bitcoin need a digital wallet to store them
  • There is also a market or exchange available to trade traditional currencies, Bitcoin, and other Cryptocurrencies.
  • Transactions cost is less as compared to other online transactions.
  • Bitcoins are valuable as they are scarce just like gold which is in a limited amount on earth
  • It is censorship-resistant money
  • Possibility of Cross border payments

ALSO READ:- Will Coronavirus Lead To Recession? How To Be Recession Ready? Here’s the answer

Cryptocurrency In India During Lockdown – Pandemic

There is an interesting twist to the tale. During this corona struck hard times, stock markets are going all low. Investment across the vertical is being hit by this COVID-19. But Cryptocurrency trading has seen a 400% jump during COVID -19 lockdown. However, the ban lifted by the Supreme Court has also facilitated a boom in Cryptocurrency trading in India.  New investors and new players have entered the trading market of Cryptocurrency in the last 4 months. The numbers of Increase in members have also become significant during the last 4 months to declare it a valid asset class and commercial activity.

However, there are certain concerns regarding taxation and classification that need to be addressed.

ALSO READ:- COVID-19 (Coronavirus): All You Need To know

Future of Bitcoin and Crypto in India  

There are few factors which give rise to Bitcoins in India –

  • Demonetization
  • India – Unbanked Economy
  • India companies use Bitcoin
  • Support from the Government towards Bitcoins

ALSO READ :- Lockdown Impact On Environment, Animals Globally: COVID19

How does Bitcoin work?

It is an interesting concept, but it is equally complex to understand how it works. Let’s understand in a simple manner.

  • Basics for the new user – one can get started with Bitcoin without knowing the technical details about it.
  • Install your Bitcoin wallet either on your phone or desktop and it will create the first Bitcoin address and one can create more whenever one needs.
  • You can disclose your Bitcoin address to your friends so that they can transfer Bitcoins to you just like a message.
  • It works like an email but here the Bitcoin address is different whenever a new transaction is made in order to be secure.

ALSO READ:- The War Against Coronavirus (COVID-19): Contribution by Companies

Role of Blockchain

  • Blockchain is a collection of blocks. It is a shared public ledger on which the entire Bitcoin is dependent on. All confirmed transactions included in the Blockchain.
  • Allows digital wallets to calculate expendable balance so that new transactions can be verified and secured and it is owned by the spender.

ALSO READ:- Babendude Launches Affordable Face Masks & Shields To Ensure Protection Against COVID-19 Virus

Transactions – Private keys

  • Transactions are the transfer of value of coins that are added in the Blockchain.
  • In order to keep the transaction safe, there is a private key used to sign the transactions and mathematical proof that it is from the owner of the wallet.
  • Signature is also required to protect to keep out of those hands which can be altered once it is issued.
  • Transactions are broadcasted to the network and confirmed to the network, this is called mining.


  • Mining is the distributed process of confirming pending transactions which are included in the Blockchain.
  • For transactions to be verified, which are packed in a block and allows very strict cryptographic rules that are verified by the network.
  • Rules prevent being blocks to be modified because this will invalidate all Subsequent blocks.
  • In this way, no group or individuals can control which is included in the Blockchain or replace parts of the Blockchain to keep it encrypted.

Purpose of Cryptocurrencies-

  • The medium of exchange like normal currencies
  • Exchanging digital information
  • The currency which uses cryptography for security and difficult to encrypt.
  • Fraud proof
  • Instant settlement
  • Accessible anytime anywhere

ALSO READ:- Air Purifier FAQs: To Combat The Spread Of Airborne Disease & To Have A Healthier Life

Different Cryptocurrencies exchange of India –

Ethereum –

  • Works on an open-source platform based on Blockchain technology.
  • Tracking the ownership of digital transactions, they also look for running the programming code of any decentralized application to pay for their transaction fees.

Litecoin –

  • It is also an open-source, global payment network.
  • Faster transaction times.
  • The coin limit for litecoin is 84 Million.
  • Operate on different algorithms. Litecoin is called a script.

Ripple –

  • Works as both a Cryptocurrency and digital payment network for financial transactions.
  • Fast, secure, and low-cost method of transferring money.
  • Allow for any currency to be exchanged.
  • Different from other types of digital currencies as the main focus is to move large sums of money.

Bitcoin cash –

  • They are a type of digital currency that is created to improve certain features of Bitcoin.
  • Increased size of blocks which helps to allow more transactions to process faster.

Ethereum Classic –

  • A version of Ethereum Blockchain
  • Runs small contracts on a decentralized platform
  • Small contracts are applications which are programs which run without any downtime or fraud or third party interface.
  • Provides a “value token” called an ethereum classic.

Zcash –

  • Digital currency based on real Bitcoin digital code base.
  • Built on a decentralized platform
  • The core feature is an emphasis on privacy
  • Users can send and receive Zcash without mention of the sender, receiver, or the amount transferred.

Stellar Lumen –

  • Intermediate digital currency that facilitates currency exchange
  • Allow a user to send any currency they own to some other person in a different currency.

Bitcoin  Satoshi Vision –

  • It is the result of the 2018 split or Bitcoin cash.
  • It indeed more closely resembles the original purpose of Bitcoin.
  • Particularly decentralized and using cryptocurrency as payments.


ALSO READ – Myths vs Facts – Novel Coronavirus (COVID-19)

What does the future hold for Cryptocurrency? Is this a good time to invest in cryptocurrencies?

  • Predicting what will happen with Cryptocurrency is risky and skeptical
  • Eagerness and speculating right time to invest in the market is difficult and interesting when it comes to this asset class
  • A unique time of history which is a rare phenomenon is about to hit the cryptocurrency market in India.
  • Bitcoins are the kings of Cryptocurrencies.
  • It is going to stay and be strong after the Supreme Court ruling to make it a legal asset class.
  • Best crypto exchanges for 2020 for would-be – Bitcoin, Ethereum, NEO, and EOS.
  • There would be good sentiments to invest In Cryptocurrencies to make profits.

ALSO READ – D614G | New Coronavirus Strain, More Infectious COVID Mutation – 8 Things To Know

Ban On The Sale Or Purchase Of Crypto-Currency

The Supreme Court has disallowed the banks and regular entities to trade in Cryptocurrencies.

There are still announcements to be made about Cryptocurrencies by the Supreme Court. The lenders are also waiting for the Supreme Court ruling so that lending channels start for Cryptocurrency only by explicit orders from government or RBI due to the legal hassles and laws of the Cryptocurrency trading is not yet defined in India.

Hereby, once the Bitcoin is being established as an asset class. People would welcome this investment with open hands as legalities, the taxation part is being tackled by the Supreme court and RBI.


Let us know if you have any questions to ask on

The views and opinions expressed in this blog are those of the authors. It is the reader’s responsibility to verify the information.

Babendude Launches Affordable Face Masks & Shields To Ensure Protection Against COVID-19 Virus