Can Bitcoin survive the Coronavirus pandemic?

Bitcoin
photo-credits: pixabay

The coronavirus has proven to be contagious both in the real and virtual world as social media is overwhelmed with all kinds of information about the pandemic. There is a concoction of hard facts and lies and whether you are on Twitter, Instagram, WhatsApp, or Facebook, you cannot escape its impact. With the economy struggling in the wake of this crisis, there has been a sudden surge of interests in digital assets like the Bitcoin.

What do experts have to say about Bitcoin prices rising in the wake of the current pandemic?

The Bitcoin, which had made its appearance during the previous worldwide economic crash in 2008, shows that there can be an alternative to the debt-based economy controlled by centralized banks. Till now, gold had been considered as the safest asset but Bitcoins, which have many common characteristics with it, has the power to dethrone gold in days to come. Bitcoin searches have multiplied on Google in the last few weeks with the coronavirus gaining ground throughout the globe. Many cryptocurrency and Bitcoin exchanges have shown a significant increase in users and trade volumes.

In spite of the market downturn, exchanges like Binance in the US have witnessed high trading volumes, with most trading Bitcoins. This recent jump when the rest of the world is tumbling shows that unlike traditional businesses, the Bitcoin will survive without any bailout. The automated bitcoin trading bots also contribute much to the rise of bitcoin trade; read this bitcoin rush review to know how they help all types of investors to trade effectively.

While Bitcoin prices had nose-dived during the early stages of the crisis, they have rebounded although stock markets are still reeling under the crash. Experts say that Bitcoin prices will remain volatile in the next couple of months but this is normal, as this was the background in which it had been created in the first place. It is believed that Bitcoin, which is a permissionless and borderless alternative to government-sponsored fiat money, is here to stay. The demands for Bitcoin will be high even in a post-coronavirus world.

As governments all over the world scurry to produce and get medical equipment, the co-founder of Block Token says that most people have lost their faith in their governments during the crisis. This lack of trust is one of the strongest reasons why the Bitcoin has succeeded in establishing itself as an alternative to fiat currency. People are likely to view it as an additional asset for wealth distribution now. According to Elvira Solji, a University of South Wales professor, the upcoming “halving” event is going to support Bitcoin prices even more.

Bitcoin’s ongoing price trajectory aligns with the spread of the virus, according to the CEO of deVere Group. Traders can therefore expect prices to keep soaring until the coronavirus peaks. The more cases are detected, the more nations will be affected, and the greater will be the impact on financial markets. Consequently, the prices of Bitcoin will also rise.

In a Bloomberg interview, Jehan Chu of Kenetic Capital mentioned that with markets deteriorating worldwide, highly mobile assets such as the Bitcoin will explode in value.

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