Bitcoin has only been around for just over a decade. Since then, its share price has risen by over 100,000,000%, from when it was practically worthless to now facing an economic crisis like the world has never seen before, becoming an absolutely essential asset for investors, and perhaps soon, necessary for everyday life.
Bitcoin: The crisis will strengthen the cryptocurrency
The PrimeXBT analyst team has gathered data that accurately shows how and why Bitcoin is becoming a staple resource in the new world after the pandemic.
Bitcoin is unlike anything that existed before. Rather than an asset stake based on company or commodity valuations, the price of which fluctuates with supply and demand, Bitcoin is the cryptocurrency that underpins a decentralized blockchain network.
This powerful and groundbreaking financial technology has the potential to change the world, and some of the world’s brightest minds – including Twitter CEO Jack Dorsey – believe it could eventually replace the dollar as the global reserve currency in the internet age.
Like the Internet before that, the new technology is not fully understood, and it is certainly not fully used. Billionaire venture capitalist Marc Andreessen claims that Bitcoin is as transformative and transcendent in terms of technology as the early Internet and early computers.
New financial assets and advancing technology that were born during the Great Recession are touted as digital gold, wealth storehouse, currency, safe haven, contactless payment option, and much more. Bitcoin has it all, and this is just a scratch of why cryptocurrency is becoming a staple asset for many investors.
The World Health Organization’s cash warning is driving contactless payments to increase
In early 2020, the pandemic effectively closed our world. Authorities have made lockdown decisions to contain a major epidemic and prevent widespread death. Retail stores have closed, travel has been cut and consumer spending has shifted almost entirely to the internet.
For those who have had to shop in places like grocery stores or where other basic necessities are sold, the World Health Organization has recommended relying heavily on contactless payment options like Venmo, Apple Pay, and even Bitcoin.
By using these payment methods, users can scan the QR code or, thanks to NFC technology, make a payment without handling contaminated cash. Bitcoin only exists on the blockchain. There is no physical form of it that could lead to exposure to any disease, virus, bacteria, or worse. In the post-pandemic world, this is extremely important.
Be your own bank in quarantine conditions
The closure of businesses around the world has also led to a massive increase in digital payment methods due to higher online spending. Both Mastercard and VISA saw extreme increases in digital transactions, especially in Latin America and other fiat money countries.
In the same regions like El Salvador, Bitcoin fuels local economies that do not have access to traditional banking infrastructure. By allowing users to be their own banks, BTC is distributed locally to local villagers to then exchange Coins for groceries and other items. Without Bitcoin, many people would be unable to pay for essentials in countries with limited infrastructure and limited access to financial services.
The increase in LocalBitcoins volume in Latin American regions further demonstrates the importance of Bitcoin in areas where access to digital payments is less common and cryptocurrency proves to be more reliable and accessible.
In other countries where money can be printed on the whim of authorities such as the United States, hedge fund managers look at cryptocurrency as a hedge against the hyperinflation that may arise from monetary policy.
Efforts to stimulate the United States and other world economies led to an influx of dollars into the market. A flood of currency lowers the real value of this asset, increasing the cost of everything associated with it. Investors have long bought gold for this very reason, but now they also turn to Bitcoin and assets that have a lot to do with the precious metal.
Paul Tudor Jones, the famous hedge fund manager, says Bitcoin may be the fastest horse in escaping inflation, and compared it to gold in the 1970s. At the time, the gold was only $ 35 an ounce and pegged to the dollar. After the end of the Bretton Woods system, gold rose to over $ 1,800 an ounce.
In a different comparison between Bitcoin and gold, the last two years have shown that BTC pricing activities have produced almost the same exact return on investment on both assets. Bitcoin, however, had a much crazier ride than gold, but both assets reached the same destination. This says a lot about Bitcoin’s potential as a safe haven.
Replacing the dollar as the reserve currency
In the worst-case scenario, Bitcoin could ultimately save the day. The dollar has long enjoyed the status of the world’s reserve currency. However, as a result of poor monetary policy and the killing blow the world has dealt with, the reign of the USD could suddenly end.
Economists expect over 35 percent. the fall in value of USD against other major currencies, including Bitcoin. The dollar also faces strong competition from the Chinese yuan. The emerging economy benefits from dollars, and the economic release of the digital yuan could be the final nail in the coffin.
The world’s greatest hope is that Bitcoin will deprive the dollar, not the yuan, becoming the first non-state currency to take its place. Every 100 years or so, the global reserve currency loses power, as does the country it represents. If the United States loses power and the dollar collapses, Bitcoin could rise and fulfill a destiny that many top technologists see in the context of its future.
Buy and trade the most important financial assets ever with PrimeXBT
As Bitcoin becomes a safe haven, expands as a contactless payment, and potentially becomes a global replacement for the dollar, it’s worth buying your cryptocurrencies.
Before full adoption takes place, the cryptocurrency will remain a speculative asset with great potential, but it also makes it an ideal resource for traders. Speculative assets like Bitcoin, even though they are slowly becoming a key asset, are extremely volatile, often rising and falling by 50%. or more in one month.
In this post-pandemic world where cash carries germs, the economy struggles to survive and the dollar is in danger, Bitcoin is becoming more important by the day. Those who want to invest in assets and trade can do so with PrimeXBT, an award-winning platform trading bitcoins, offering CFDs on forex, stock indices, commodities and cryptocurrencies such as Bitcoin.
All accounts are denominated in BTC, so users can buy Bitcoin directly on the platform to top up their accounts and then trade Bitcoin-based contracts by taking long or short positions to profit from any direction of the market. The platform includes built-in charting software with indicators technical analysis, drawing tools and more. The customizable user interface is perfect for both new investors and experts.
Register with PrimeXBT today to invest in what is quickly becoming the most important asset that has ever existed.