It takes a certain kind of person to be optimistic about cryptocurrency in the wake of the coronavirus. Bitcoin dropped almost 50% over the weekend and while it’s starting to correct itself, having climbed up a few hundred bucks over the past 24 hours, it’s still not anywhere close to the CAD$10K it was at this time last week.
Still, NetCents Technology (NC.C) is rather bullish about its projections regarding crypto’s chances for widespread adoption.
“Based on the recommendations of the World Health Organization (“WHO”) to use ‘contactless payment methods’ whenever possible, we believe that a lot of potential market participants will take the plunge into Crypto and use it as a viable alternative to cash or credit cards. We also believe that with the recent declines in Crypto values, right now is a great time to dip your toe in the water and get involved in Cryptocurrencies,” aid Clayton Moore, CEO of NetCents.
The last sentence in that quote may be true in a month or two, when flu season ends and everything goes back to normal. But if what Dr. Michael Osterholm, a doctor focused on infectious diseases, had to say on the Joe Rogan Podcast is any indication, then Bitcoin likely has more shocks coming as bitcoin mining companies close up shop and self-quarantine to ride out the worst of it.
If you can squeeze an hour and a half into your coronavirus self-quarantine schedule, give it a watch.
The cryptocurrency markets have grown by about 10 million wallets annually, but that might change because India has lifted their ban on using cryptocurrencies. Now Netcents management thinks that the projection of global wallets will increase as Indians begin adopting cryptocurrency. They’re primed for it. Historically, statistics display that cryptocurrencies tend to be adopted more in regions where the financial infrastructure is limited, thereby making India, which is the world’s second most populous country and in possession of a limited infrastructure, a growth target.
The company believes that not only is Bitcoin going to bounce back hard from this coronavirus slump, but it’s going to increase over the next 12 months with a wallet-growth exceeding 15 million, and the result will mean that consumer adoption will lead to increased transactions using cryptocurrency.
Netcents has been experiencing 40% monthly growth in transaction volume, and the two trends could combined to increase that growth rate even more. The company will even re-deploy some of its advertising budget to help education would-be consumers regarding their options in choosing the ‘contactless payment’ methods, recommended by the WHO.
This likely sounds fairly familiar by now but the problem is the unknown unknowns we’re dealing with right now. The prospect of moving into India is a potentially lucrative one, but there’s no guarantee that the people of India are going to be in any condition to start thinking about adoption of cryptocurrencies in the coming months.
In all probability, bitcoin and other cryptos will bounce back. The financial opportunities represented in the halving will mean companies resuming mining, or setting up shop where old companies bailed out as the hashrate, price and the block reward offered meant they couldn’t keep the lights on. But it won’t be until after this pandemic has passed us by for another season.
After that the lessons of 2020 could mean serious business for cryptocurrency adoption, and the prospects of contactless payment methods.