Crypto Sector: ‘High Potential After Corona’ – The Startup

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Why Fintech companies and cryptocurrencies will emerge stronger from the economic crisis.

The Crypto industry is changing the future. There are about 43,000 participants who, inspired by the idea of a Fintech company, want to counteract the virus and the resulting problems with new software. Hospitals are telephoning or sending emails to communicate with each other and to add or exchange material. Slowly, ineffectively and hopelessly outdated, is the conclusion of the experts who now want to change this.

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European cryptographic industry strengthens digital transformation
Many ideas and solutions have now been presented about the hackathon “ WirVsVirus — wir gegen das Virus” (we against the virus), for which the Federal Government is taking over patronage. The group consists of developers, mentors, creative people, web designers, and software architects. On the initiative of Dorothee Bär, government commissioner for digitization, a total of 7 networks came together around the digital support project Tech4 Germany and called for the submission of creative ideas.

A 30-person team now selects the best ideas. Among them are applications against domestic isolation, a digital job market for nursing staff and a solution based on artificial intelligence. This registers a deterioration in the patient’s condition based on various symptoms. Artificial intelligence is increasingly discussed as a possible building block for efficient solutions and applications in these times.

Even though large corporations are increasingly publishing plans for cryptocurrencies and new coins are constantly coming onto the market. In terms of blockchain technology and especially crypto assets, our country still has a long way to go. Despite generally positive market developments in recent months, the situation on the stock market does not look good at present. As is well known, a historical crash is being observed that is directly related to the coronavirus.

The German government has not hesitated long to announce promises and support for the battered economy. But anyone who takes the trouble to look behind the façade of falling share prices and impending economic crisis may be surprised at how well the Fintech sector and, in the midst of it, numerous crypto companies are doing at present. The reason for this may well be the methods of financing and of course the fact that it is not the classic financial market but the crypto market.

Companies are facing high investment costs, which is clearly demonstrated by the crisis these days. Home office and other digital working methods were quickly brought into play, but due to these circumstances and the extent of their digital equipment, most companies were not at all able to meet the wishes of the employees and ultimately of the states and the federal government.

Covid-19 has significantly changed the lives of people around the world. We believe it will be a turning point in the way people work and learn. Our customers are turning to teams in these challenging times and we are seeing strong usage increases in markets that are heavily impacted by Covid-19,” said Jared Spataro, Microsoft vice president (Source)

No less positive comments have been made about the company’s development from a pure supplier of office and Windows platforms to a tech group in the front row.

Columnist and Focus-Online author Ulrich Reitz also sees a lot of potential for new ideas in the current situation: “Corona crisis is an opportunity for the digitalization of our lives” (Source)

Not so long ago, teams were always particularly effective when they met in person at least once a day. Social reasons may well lend weight to such statements. In times of Corona, however, the world is moving towards digital teamwork.

Suddenly, digital teaching is possible, which until recently was one of the biggest obstacles in education policy on the way to digitalization. The Corona crisis can bring about a major social change and not only improve career opportunities, but also help crypto-currencies to gain greater acceptance.

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But not only in the financial sector and the way we want to invest and increase our money, but many things will also change. Industrial applications will be of great importance especially during and after the crisis. Anyone who is now able to provide digital solutions for fast replenishment, more efficient production or improved crisis management, for example, can look forward to a truly positive future. And there will probably be many companies in the crypto industry.

The biggest market shifts occur in phases of economic downturn. In the first 10 to 12 months after the Corona crisis, digital companies and those industries that rely on digital technology such as cryptocurrencies will be the most successful in the market. The great concern about profit and loss in the market also brings with it a great product innovation. The example of the virus hackathon has clearly shown this.

Attentive observers should not have failed to notice that the Bitcoin price has been rising again since the virus spread in Europe. In times of high numbers of infected persons from China, the price collapsed from day today. Here too, the good handling of the virus in Germany and the strict regulations of many European countries gives hope.

The fact remains, that it is worth buying Bitcoin even in times of crisis because crypto-currencies are the only alternative to the classic financial markets. Germany, as the number 1 export nation, is well placed with investors. They are pinning their hopes on a rapid recovery of the market and the innovations that will follow.

It is already apparent that many analog companies are increasingly relying and need to rely on digital models. Especially if they want to keep their business running or rise like a phoenix from the ashes after closure. Medical online services, social networking apps, live streaming services and now is also a good time to set the operational course for the future mode.

The logistics chains are working at full capacity, but they are working”, said Böttcher. The supply is there, but in some cases, the shelves cannot be filled as quickly as the goods are sold, said a spokesman of the Federal Association of the German Food Trade (BVLH), Christian Böttcher, to the German Press Agency in Berlin

For investors, the cryptocurrency market could be quite difficult at present, especially if the projects have to finance themselves via tokens. Stock exchange heavyweights such as Binance, Bitfinex and Huobi or brokers such as Coinbase, Bitpanda and e-Toro make it extremely difficult for small exchanges to push into the crypto business. Small service providers will hardly be able to benefit from the increasing investments of institutional investors that are expected after the end of the crisis.

The open-source community benefits from the many people currently fighting boredom in their own homes. Because home office, short-time work, and social isolation bring a lot of time to work on Github. This is also where some of the current projects of the IOTA foundation are located. Buying IOTA makes sense despite or even because of the current turmoil in the stock markets.

The development is running at full speed, although the current situation is a great challenge for the entire crypto industry. Progress is being made and as soon as more details are known, it would be made public in accordance with the Foundation’s transparency requirements.

Despite all the obstacles and hurdles at the moment, the industry will continue to implement IOTA. In a statement to HelloIOTA, Dominik Schiener, co-founder of the IOTA Foundation, confirmed that contingency plans are being worked on to reduce current risks. This will ensure that the implementation of the roadmap will not be affected.

Basically, our plan to be the first approval-free ledger for companies has not changed and we will continue on our path of technical maturity and cross-industry introduction of IOTA, said Dominik Schiener in his statement (Source)

Meanwhile, the crypto industry is experiencing an impressive recovery. This is also due to the fact that the world’s leading stable coin tether USDT is creating masses of new tokens. According to Bitfinex CTO Paolo Ardoino, these are “inventory refills” that have not yet been released.

As the block-chain analysis bot “Whale Alert” also reported on Twitter, it was 180 million USDT spread over two days. In addition, the European Central Bank has announced a pandemic emergency purchase program of 750 billion euros. But with more money in circulation, there is then also an increased risk of inflation. And this is exactly where Bitcoin and other cryptocurrencies will again be able to benefit.

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