While the term Covid-19 may not sound right for the significant population on earth, Bitcoin has managed to reverse roles and taken itself to new heights. The pandemic has proved to be a shot in the arm for Bitcoin.
A news article on Bloomberg had clearly highlighted the fact that Bitcoin as a cryptocurrency has done what market analysts would not have seen for a very long time in the stock market. It has managed to achieve greatness within a short period of time, despite the pandemic.
When the global market is shrinking, unemployment reaching unimaginable heights, the cryptocurrency market is witnessing a miracle with Bitcoin. Traders and users of Bitcoin must be pleased about the current situation.
It is the most popular cryptocurrency worldwide. Bitcoin is being recognized by governments of many countries that did not want its presence on their soil. A good example would be Russia, whose prime minister acknowledging that it is a force to reckon with.
The country plans to amend the taxable laws on Bitcoin because of the surprising number of traders using it there. Analysts have rightly claimed that many people feel safe and insist on investing in BTC during the pandemic.
Why is there a greater interest in investing in Bitcoin? Is it that good and ruthless. We will try and find out the answer through this post how Bitcoin is soaring high amongst the ruins in the market.
If one looks around, they can find plenty of millionaires. There is no need to become surprised when one realizes that they have millions invested in BTC. Some of them are in their early 20s.
These billionaires are what one can call the early risk-takers in Bitcoins. They were not afraid to take the plunge and have reaped the rewards. One such is the man himself, Satoshi Nakamoto, the inventor of bitcoin.
Today Nakamoto is worth more than $8 billion. Erik Finman is another excellent example of the powers of Bitcoin. Finman is a teenager who purchased $1,000 in Bitcoins and made more than $4.8 million.
Registration is pretty simple as all one needs to do is deposited around $250. That is it; one is ready to trade right away. Most of the portals that deal with cryptocurrency understand that it is a new concept and are at hand 24/7 for offering help.
The Bitcoin halving was something that traders dreaded. In 2020, the price remains quite stable. The halving occurred in the month of May 2020, and it went to $9,999.93. Before the halving happened, the price was in between $10,630 and $8,784.
In the month of November, it peaked at $15374. Analysts have pointed out that the price will go further high. Bitcoin achieved that and reached more than $19000. No surprises that people feel safe in investing in BTC.
The virtual mode of currency is proving to be a game-changer in the market. Traders and large holders (whales as they are known as in the Bitcoin market) have found that it is a secure place for storing their wealth fearlessly.
Bloomberg Opinion has rightly said that physical coins are soon becoming a thing of the past in their tweet. They are going to be followed by banknotes.
A news post on The Week has pointed out a few reasons to invest in Bitcoins during the pandemic.
Bitcoin adoption is increasing.
The first is quite obvious. Globally, Bitcoin is being adopted in many countries. The term blockchain wallet is gaining momentum. It has significantly increased this year, especially from the month of November.
As of now, there are close to 59 million wallets. It was around 42 million wallets last year. Though wallets are not the actual count, large whales and companies have major BTC holdings that amount to millions.
Bitcoin value is suited to the macroclimate.
During the global financial crisis that rocked the world, Bitcoin was born. At that time, market analysts never dreamt that this would be a force to be concerned with. The cryptocurrency was exposed to the wild market and was being ignored for all the wrong reasons.
However, it began to grow slowly, but steadily. A group of idealists believed in this new form of currency and invested in it wisely. Today, we are witnessing another form of market crisis, but this time, Bitcoin is the king and game-changer.
Paul Tudor Jones, who is a macro investor, had rightly said that in 2020, Bitcoin is similar to the gold that ruled the world during the 1950s and 60s. Jones has wisely invested into the holdings of the Bitcoin futures contracts.
Being a market veteran Jones like many market analysts, was left helpless. Interestingly, it managed to make around $4 trillion through quantitative easing. According to him, the world is seeing “the Great Monetary Inflation (GMI).”
Raoul Pal, who is the CEO of Real Vision, has the same thing to say. Pal feels that central banks must learn to adapt to times. The fostering of quantitative easing, gold, and cryptocurrency can show their true colors and make money for all.
It is a win-win situation for all, both traders and government agencies.
Niall Ferguson, an author and broadcaster well-versed in Bitcoin’s nuances, tweeted that we are living in a monetary revolution headed by Bitcoins. It is something that we humans must brace ourselves for. Bitcoin is winning it without a shadow of a doubt.
Naysayers will have to change their minds very soon because we cannot predict the full extent of its power.
Wall Street is going with the flow.
When Wall Street is going with the flow, then one knows that Bitcoin is something—not surprising to note that the performance of cryptocurrency has been noticed by several Wall Street analysts, investors, and fortune companies.
For example, MicroStrategy, a business analytics firm, said that it would invest more than $240 million in August. Michael Saylor, CEO of the firm, said that they wanted to show everyone that cryptocurrency is becoming the norm today.
Square, another company, said in October that it was investing $50 million in Bitcoins. They felt that Bitcoin is capable of being a “more ubiquitous currency” and offers investors a powerful way to participate in a global monetary system.
Luke Martin, who is a Bitcoin trader, had tweeted an exciting video, where the president of the United States of America announced in a press meeting that Bitcoin had reached an all-time high, itself is proof of that fact.
When the president of America accepts that Bitcoin has reached extraordinary heights in the market, one must pay attention to it.
Bitcoin has positively affected the global monetary system. It has given intense popularity about cryptocurrencies as an accepted payment option. Market analysts have pointed out that cryptocurrency is the future of money.
It comes as no surprise that many users and traders are investing in it. They see a vast future doing so. Hardcore critics, too, are shell-shocked at the performance of bitcoins during the market crash.
The answer to the question, is Bitcoin winning the Covid-19 monetary revolution, is quite apparent. It is undeniable that cryptocurrency is the current boom, and traders are doing the right thing by dealing with this new boom with unpredictable capabilities.