The pandemic has elevated the acceleration of cryptocurrency into the mainstream as fears over existing systems have heightened, according to Scott Morgan, a blockchain consultant, entrepreneur and the Founder and CEO of Crypto Integrity Tao.
As alternative investment routes became increasingly less prosperous and their potential decreased, the allure of crypto investment grew exponentially.
Commenting on the volatility of crypto during the pandemic, Morgan told PaymentExpert: “The pandemic raised fears in the existing systems. Solutions provided by Blockchain, cryptocurrencies, DeFi, and new networks with so much promise like TRON and Celsius got the spotlight. Plus, the pandemic wiped out alternative investments that paid off well for decades. Westfield was a top investment until the pandemic shut down almost all of their malls.
“The reason the world paid attention to a geek-niche investment like cryptocurrency in its emerging stage like now is because the pandemic introduced multiple forces of FOMO and FUD. Crypto bulls shot financial flak barrages at traditional financial institutions and policies. When full of fear, 90% of people run to anything that offers safety, and that means run to “what they already know and trust.”
He added on what he believes will be the lasting impact on the status of cryptocurrency following the pandemic: “Now that the concept of cryptocurrency is pretty much universal, if hype and timed opportunistic exit strategies in this current ‘Wild West of Crypto’ is curtailed – then cryptocurrencies are here to stay and will expand in use. However, the idea that cryptocurrency will “replace” fiat currency and spell the end of reserve banks is not realistic. Cryptocurrency is not only coolly inclusive and a net positive for humanity, if regulated properly, it will allow centralised fiat currency control to also retain healthy status.
“The pandemic put a spotlight on cryptocurrency – then threw gasoline on the fire of distrust in fiat currency, old financial models, and central bank/government policy that seems to disregard industries that feed the risked money that makes governments possible.
“Naturally, financial investors and key banks like Chase got the justified proof that their years of work on cryptocurrency were worth it. Gemini did a terrific job of proving a major exchange can lead the pack and please the S.E.C. at the same time.
“This led to some sage permissions by the S.E.C. to institutional investment. Following the rules allowed grayscale to become the ‘King Kong’ it is now. However, to be honest in an arena that echoes only endless good news – DeFi and CBOE are inches away from opening a Pandora’s Box of manipulation, lawsuits, and bad brand for cryptocurrencies if they do not put both institutional security and main street/retail security above profits from derivatives, synthetics and the same practices that led to the 2007/8 crash.
“If these Pandora’s don’t poison the well, the IRS with retroactive punishing taxation will punish the leaders in these two markets. This fact proves it is time for the hype-leaders to step back and let wise minds act as a governor on the throttle of cryptocurrency’s race to a secure and stable investment.
“After financial sectors, the fastest movers were in the gaming arena. Wise innovators realised that to ‘scale’ cryptocurrency they should jump into the games market. But what most experts fail to understand is that ‘scale’ requires ‘spirit’ and that spirit is influenced by the culture of each nation slightly differently. This is not a one-size-fits-all future and this is why Crypto-Integrity-Tao blended Eastern and Western philosophy, monetary policies from the world’s top economies.”