A day after the threat and, several European countries take more restrictive measures to fight coronavirus and Bitcoin has devalued close to 5%, what can happen to BTC if the World needs to do a new lockdown to reduce health risk?
- The 50% drop in Bitcoin price in February-March this year demonstrates its vulnerability to coronavirus.
- As we can read in this article, consumers are spending their money on basic necessities, that is, food (where Bitcoin is not currently used).
- On the other hand, travel, whether for business or leisure, is much more limited, which reduces the use of Bitcoins in this market segment.
- In addition, people prefer to save money and keep it without risk of loss, which does not enhance its use in risky investments such as Bitcoin.
- That is, the normal tendency for countries to increase the lockdown rules in cities will result in an increasingly lower Bitcoin usage rate and consequently its price drop.
How Consumers Are Spending Money During COVID-19 Pandemic
COVID-19 has changed virtually every element of the every day lives of ours, and consumer spending is actually no different.
In general, spending is printed throughout almost all industries, as lockdown actions have restricted what we are able to invest cash on, thanks to restaurants as well as stores being shut and air traveling suspended.
Likewise, the economic effects of this coronavirus pandemic have intended individuals are less inclined to invest a lot more, with many people wanting their household income to carry on and fall in the coming weeks.
Time spent inside however, has triggered us to invest more people on groceries as well as home entertainment.
How COVID 19 Consumer Spending is actually Impacting Industries
Consumer spending is actually among the most crucial driving forces for worldwide economic growth.Beyond impacting several of the factors which determine customer invest – including customer confidence, unemployment amounts, or maybe the expense of living – the COVID 19 pandemic has additionally considerably changed where and how customers opt to spend the hard earned money of theirs.
Splurging on luxury solutions with cash put aside for a holiday
Since the pandemic has brought summer time vacations to a near stop as compared to prior many years, individuals who saved set up for a summer holiday and discover themselves not able to easily travel are actually utilizing that cash to splurge on high end solutions alternatively, Nielsen discovered.
“Consumers who could pay for it are actually opting for items like nicer plastic bottles of wine, nicer slices of various meats, artisan bread, face skin and sushi to compensate for the traveling as well as entertainment experiences they won’t be able to easily enjoy,” Scott McKenzie, Nielsen Intelligence Unit Leader.
Transport as well as travel
The inevitable decline of the traveling as well as transportation business is a manifestation of mass cultural isolation quantities as well as tightening travel restrictions.
In reality, the U.S. travel sector is able to count on to find out an average decline in earnings of eighty one % for April and also May. Throughout 2020, losses are going to equate to about $519 billion – converting to a broader $1.2 trillion contraction within complete economic impact.