What do Bitcoin and Covid-19 have in common?

There's none, apparently but it’s not like there’s no correlation at all.

When the pandemic hit the world, the price of Bitcoin and other cryptocurrencies started surging forward. Of course it’s not the only reason why the prices of some of the biggest cryptocurrencies reached all-time high (ATH). Some of the reasons were the political turmoil in the US, economic recession, and investors looking for alternatives to the traditional stock market.

All of these were different and seemingly uncorrelated reasons why the crypto-market was thriving in 2020 and by extension 2021. But there’s one connecting point to all of these events – they all occurred during the Covid-19 pandemic.

Coincidence?

I don’t think so!

All of these events point to one thing; during trying times, traditional assets could barely compete with Bitcoin and other cryptocurrencies.

Of course things could turn out differently if it were a decade ago where the technology has yet to mature and get a foothold. If the pandemic hits 10 years ago, the crypto-market might collapse there and there. Although, it’s also possible that it would have accelerated the development of the technology.

Anyways...

Although Bitcoin (and other cryptocurrencies) didn't have similarities to Covid-19, it still wouldn’t stop some people from using it to Covid-19 related cases -- like buying illegal vaccines with Bitcoin.

Yeah, you read that right.

Some people and VIPs in India, specifically Karnataka, are buying illegal vaccines to fight off Covid-19. Even though these vaccines are yet to be approved (hence, illegal) by the Indian government to be used by the public, some crypto investors (and holders) in India were still buying the illegal vaccines on the black market.

Let me say this first – buying illegal vaccines is a very dangerous move, physically and financially.

It’s dangerous physically because (1) it is untested and might have adverse side-effects, and (2) the vaccines might be ineffective and could not give the immunity boost that the buyer wanted. Ineffective vaccines could put the user at greater risk because they would think that they’ve developed immunity (even though they haven’t) and go to crowded places without protection (mask, face-shield, etc.)

Financially because the price of the illegal vaccines are more than doubled compared to that of the government approved vaccines. Also, it’s easy to get scam when buying from illegal sellers.

There’s another effect that was not discussed in the article that I’ve read: Using Bitcoins to buy illegal products (vaccines, etc.) could give lawmakers reasons to push for more regulations – regulations that we obviously don’t need.

No matter how you slice it, buying illegal vaccines is a bad idea but buying it with Bitcoin makes it worse.

I'm not saying that buying medicinal supplies, and tools to combat Covid-19 is a bad thing. On the contrary using Bitcoin to purchase legal products is actually good for the crypto-market as it could showcase the usefulness of cryptocurrency in the fight against the pandemic. What is bad is to use cryptocurrencies in illegal transactions as it would negatively affect its reputation. So think where you use your cryptos.

That is all for now. If your from India (or even someone not from India but interested in buying vaccines at the black market) and you have some Bitcoins stored somewhere, I suggest that you use your Bitcoin to buy something more useful for yourself and your family.