Although coronavirus conditions have created global economic difficulties, cryptocurrencies could see growth amid the struggle, according to one blockchain incubator’s head.
“Short-term: digital currencies suddenly look appealing,” Polyient Labs CEO Brad Robertson told Cointelegraph in a May 1 email. “If someone only looked back at the last two weeks, they might think ‘cryptocurrencies are back, baby,'” he added.
Bitcoin has rebounded faster than mainstream markets
Bitcon crashed in tandem with mainstream markets on March 12 amid rising coronavirus fears. Both sectors have since recovered, although Bitcoin sprung back to life more quickly than traditional markets.
The U.S. government’s recent money printing efforts leave the public questioning the best place to park their wealth, as world economies continue to struggle.
Noting recent positive price action from top crypto assets such as Bitcoin (BTC) and Litecoin (LTC), Robertson also mentioned Libra’s fresh support, as well the U.S. government’s mentions of a national digital currency.
“These are all great, short-term signs,” he said, adding:
“But we’re in the middle of an economic guessing-game right now and even the Fed Chairman is warning us things are going to get worse before they get better. So, medium-term, I anticipate a lot of volatility for digital currencies in the months to come.”
Robertson also sees bullishness down the line
The CEO also noted his bullishness for crypto’s longer term horizon. “Digital currencies are gaining real traction,” Robertson said, mentioning a recent bill that indirectly gives crypto exchanges and traditional institutions similar status. The CEO also mentioned other examples, including blockchain’s success in retail, gaming, and banking.
“As far as digital currencies, gaming is the best positioned to benefit from the ‘new normal,'” Robertson said, noting that quarantine and entertainment thirst go hand in hand.
Speaking on non-fungible tokens, Robertson explained:
“By adding blockchain to gaming, you now have an environment where gamers can create and earn customized digital tokens and NFTs in one game and then move those digital collectibles across multiple gaming platforms, trading them or selling them as they go.”
Such applications could make current gaming obsolete, ushering in a new wave of potential, he added.
In line with Robertson’s comments, blockchain gaming has shown greater participation in recent weeks, Cointelegraph reported in April.