Covid-19 Might Propel Bitcoin Prices
The effects of the prevalent covid-19 on the economy have been massive. With almost all sectors stalled, the economy has struggled to maintain the money flow. Only the central banks have put economic stimulus and recovery measures to ensure the economy doesn’t go to waste.
While the covid-19 seems all too bad on the economy, the crypto appears to be on an upturn. It is more like it has given the coins a need boost for some of the highest rising values in a long time.
This article looks into the ways through which Covid-19 might have propelled Bitcoin prices.
The Need for Multiple Investments
Coronavirus has been so significant that currently, it seems so understandable to use terms like pre and post corona. Investments in the pre-corona period were all about specializing; most traders would look for a commodity with most potential then learn everything about it.
After mastering the trade, they would place their money and keep on pumping money till they become gurus until corona struck endangering most of the investments. Most of the investors are now open to multiple investment options, unlike before.
Some of the things to look into when choosing an investment portfolio are security and possible returns. For now, no other sector offers both than Bitcoin.
Increased Trust on Bitcoin
Even though Bitcoin has seen tremendous growth in recent times, it has also faced creditability issues. Most people trust cash such that they would not think of any other uncontrolled currency. However, after a sustained growth, even with the Covid-pandemic, most people are reconsidering their views.
For one, the investor has been torn on the security of the Bitcoin. While one group thought it is quite safe, others felt that it is more like any other traditional commodity without stability. Immediately the pandemic it seemed like those who doubted Bitcoin was vindicated. The coin took a nose dive to some of the lowest it has traded in the recent time, $3000.
After some time though, the coin recovered to trade at some of the highest levels of $1000. It even beat the resistance levels it has struggled with earlier. The pessimist still maintained that the rise was a bull run with the possibility of a crush. It seems they are going to wait for ages for the coin to fall again.
The fact that Bitcoin continuous to flourish amid a calamity of Coronavirus status shows its resilience. The growth has led to more trust hence more people looking to get a piece. Like any other market, the laws of demand and supply applies. The more the need for the coin, the higher the prices.
Increased Blockchain Application
By now, you have most probably heard of blockchains and how it seeks to transform most sectors. However, they have mostly been mere ideas. The coronavirus has seen an increased application of the blockchains in different ways.
Most of the medical outfits have adopted the blockchain system to track supply. Same to delivery companies using the methods to ensure the right delivery.
Growth in the blockchain technology impacts Bitcoin. It is the first primary blockchain system ever, thus the most preferred payment method for blockchain transactions.
Bottom Line
While the world keeps hoping for the end of the now prevalent virus, Bitcoin is the place that has not suffered as much. The spread of Covid has come with the need for more alternative investments while also increasing trust in the coin. It has also increased the use of blockchain technology, where Bitcoin is the leading blockchain payment method.