COVID-19: Surge In Bitcoin Price Likely as Global Economy Improves
THE STRUGGLE AGAINST THE CORONAVIRUS
Coronavirus is the plague that has vehemently fought the world and its peace since December 2019. The Coronavirus has caused a dreadful effect on both the health and economic systems of the world. The terrors of the Coronavirus are many, and this is not a pandemic that will go into oblivion so soon. The virus itself is not so deadly, at least not that deadly. It spreads subtly and has gradually eaten deep into the heart of the Nations of the world.
The virus hit China first, and from China, the virus spread to Europe, and from Europe, it got out of hands. The coronavirus effect has taken its toll on the majority of the countries across the globe, and by implication, has crumbled several economies and financial standings. Many have tested positive; many asymptomatic patients of this virus would have transmitted it vastly before they know they even had it. There have been recovery cases, but there is still no vaccine discovered to guard against this virus. Fear lives in the heart of the world at this moment. The Italian president called for public prayers at a certain point when the terror of the virus got out of hands in Italy. Italy called for national prayers because they had tried all they know how to, but the infection would still not subside. The terrors of this virus ate into the nation of America, and Donald Trump (the American president) once said on twitter that we are fighting against an invisible enemy.
THE DEVASTATING EFFECTS OF CORONAVIRUS
The Coronavirus has gotten many mighty Nations on their knees, and without a well-calculated plan, many nations may never recover from the traumatizing effects of the virus. Because of the traumatizing effect, the Coronavirus has had on the world, and of course, the financial markets, a German finance minister committed suicide. This should give one an idea of what this virus has caused around the world.
Many nations of the world are at a complete halt of activities right now, not because they want to stop running their countries but because the Coronavirus has forced their hands to shut down. The effects of the virus are not just over the health of people; they go way more profound than that. We have seen from the drop in the price of crude oil that if financial systems do not take steps to contain this virus in time adequately, this virus is not something anyone would forget in a thousand years. The value of the currencies of the world is dropping, and the economic situations in these nations are not improving.
The effect of Coronavirus has stranded many nations economically. The European financial markets have faced a tragedy, one which it may never recover from, and one can never underestimate the impact of the European financial markets on the world financial markets. The turbulent storms facing the European financial system means the world may be in trouble after this whole drama is off. Nations are beginning to draw a comeback plan for the Coronavirus.
The Coronavirus has brought the financial world to a halt down. But as they say, when the going gets tough, the tougher gets going. Some nations have lifted the lockdown, which they incurred as a measure to contain the virus; these nations lifted the lockdown so there could at least be some economic activities running in their Nations.
Countries that can get back on their feet economically at this time help their currencies to gain value in the financial markets as the value of money depends on the activities that surround the economy that controls the currency.
Many forms of money have lost their value, and many more are in the process, and the saddest thing is that many more will follow in the months to come.
WHAT CORONAVIRUS MEANS FOR FINANCIAL ASSETS INVESTORS
Investors of the financial assets trade market formerly thrived on the value of traditional currencies (the strongest of which are the Dollar and the Euro). Since the Coronavirus, there’s been a drop in the worth of these assets. The value decline of assets has reverberated into a reduction in the value of the financial holdings of assets investors.
Cryptocurrency is fairly more stable than traditional forms of currency. Many investors have started looking at the crypto way. Financial experts anticipate that cryptocurrency will be the Rock upon which the economic world will stand after the Coronavirus. The crypto itself is not without its volatile nature. While some have been optimistic about the digital currency, others have envisioned danger and a massive loss in the financial market. The impact of the virus on the cryptocurrency market is not as much as it is on the traditional asset market.
IS CRYPTOS THE NEXT BIG THING?
Many have started trading cryptocurrency, reading about it, and many have just converted their money into cryptos. In summary, asset investors tend towards the cryptocurrency side of the financial world right now.
Any asset investor who doesn’t want to count more loss at this time should have started looking at the crypto-currency market.
CRYPTOCURRENCY
A cryptocurrency is a virtual form of currency; its creation was a currency solution that would withstand the factors that would typically affect other fiat currencies of the world (for example, the USD, Euro, and more). The innovation of cryptocurrency came at a time when the world was on a global economic meltdown. In less than 20 years of its inception, the cryptocurrency has grown to become the most potent form of currency in the world.
Although there have been many other versions of cryptocurrency since its first one came, the Bitcoin, however, is still the strongest of all cryptocurrencies.
The price of cryptocurrency fell just as the cost of most other assets of the financial assets trade world fell because of the Coronavirus effect. The lockdown lift in many parts of the world has helped economic activities, and commercial activities are starting to spring back up again. The prices are tending toward a rise in value.
BITCOIN
Bitcoin (BTC) is a consensus network that enables a new payment system and a completely digital currency. Often referred to as the currency of the future, the bitcoin is powered by its users and is a peer to peer payment network that requires no central authority to operate.
In 2008, an individual or group of individuals operating under the pseudonym “Satoshi Nakamoto” published the Bitcoin Whitepaper and described it as: “a purely peer-to-peer version of electronic cash, which would allow online payments to be sent directly from one party to another without going through a financial institution.”
Since the introduction of bitcoin into the financial market and the crypto industry, several crypto projects have sprung up. Examples are Litecoin (LTC), Ethereum (ETH), Bitcoin Cash (BCH), Ripple (XRP), and more.
THE PRICE INDEX OF BITCOIN OVER THE PAST 3 MONTHS
As strong as bitcoin is, it has seen some better days, and experts anticipate a rise in its price.
The drastic price index fall of the Bitcoin connects to the impact of the Coronavirus on the world economy. In February 2020, the price index of the Bitcoin was over 8 thousand dollars, but by March, the price had fallen by an unimaginable margin. Some Nations of the world have started using local herbs to treat the illness, some other nations have found vaccines that only work on some selected few people, and it is not that they do not want these vaccines to work on all their people. Still, the vaccines just will not work for the general populace. These developments have shown a significant improvement potential, and there is light at the end of the tunnel of this Coronavirus pandemic. The world is hopeful that the journey to the vaccine of the Coronavirus is closing in.
LIGHT AT THE END OF THE TUNNEL FOR BITCOIN INVESTORS
The discovery of the vaccine of Coronavirus will not result in an automatic resuscitation of the global markets. Discovery of the Coronavirus vaccine means:
- Economies will start running again,
- Nations of the world will get healthy once again,
- People will get to work once more,
- Exports will continue,
- Production will start again,
- Importation will begin once again,
- Agricultural products will move freely,
- The economy of Nations will spring into life once again.
All these factors mean the value of the world currencies will rise once again, but the rise will depend on how fast these nations can get on their feet.
The future rise of the Bitcoin cryptocurrency is anticipated based on the fact that the world is starting to face the fact that we have to find a way around the Coronavirus to make our economies run. The price of crude oil, which once hit the negative mark during this pandemic, is picking back up again. Many oil companies laid off their staffs because they could not afford to pay them any longer; many oil companies may never get back on their feet because of the effect of the Coronavirus.
The major oil-producing states of the world based their 2020 budget on the fact that they would mine crude oil for the whole of 2020, no one anticipated this sudden pandemic. Many of these oil-exporting countries are in serious derision now. Many of them have started to review their budgets. You can only imagine what life would be for the average man in these countries after the Coronavirus pandemic.
WHY THE PRICE OF BITCOIN WILL RISE AGAIN AFTER THE CORONAVIRUS PANDEMIC
Coronavirus has caused a severe shift in the economic balance of the world. Nations that were once powerful economically are struggling to get back on their feet at the moment. Although it is alleged that America has enough in store to sustain its citizens for the next 50 years, still, even America may not be able to withstand the horrors of the Coronavirus in time.
The wise ones among asset investors have converted their assets into cryptocurrencies. This rush to the crypto assets is because cryptocurrencies are versatile, and they also are resilient. The conditions which usually defy typical forms of currency do not have so much of an effect on cryptocurrency.
The following are the likely reasons why the price of Bitcoin will rise again after the coronavirus pandemic:
BITCOIN HALVING
Bitcoin halving is a way of keeping in check the amount of Bitcoin available in the market. The process is relatively simple enough to understand; the blockchain technology company halves the total value of bitcoin in the market. If there were 200 bitcoins available in the market on halving, there would be only 100. There have been a few halving exercises of the Bitcoin cryptocurrency since its inception, and a new halving process will come up in May 2020.
The halving will automatically shoot up the price of Bitcoin (regardless of any market condition). The cryptocurrency asset will become less available in the market, and that is good news for bitcoin asset holders. Bitcoin’s value will almost double by the end of May 2020. The halving process is a way of the blockchain company controlling the amount of Bitcoin in circulation. Because of the halving coming up in May 2020, there will be less bitcoin available and more buyers. There is a sure bright future ahead of Bitcoin asset holders.
Financial and crypto experts believe 2020 will be the year of utmost importance for Bitcoin. A lot is bound to happen, starting with a long-awaited Bitcoin block halving. Though the effect of Coronavirus has affected a lot of scheduled developments, the planned Bitcoin halving is one of the most significant market events that may drive and affect Bitcoin’s price.
BITCOIN BAKKT
Bitcoin community believes that the launch of the Bakkt – Bitcoin futures platform – will also contribute to Bitcoin’s further adoption inside the traditional financial system and will attract big institutional investors to enter the crypto market.
BITCOIN TECHNOLOGY
The dynamic nature of the universe has aided the ever-changing technological innovations in the world, even in the financial circle. This technological advancement is another important factor that may drive Bitcoin prices higher. Developers are working on Lightning Network technology, which is aimed to cut the cost and time of Bitcoin payment.
ONLINE BUSINESS BOOM
The Coronavirus has taught the world a lesson, and people are starting to adapt to new methods. A lot of businesses still ran effectively throughout this pandemic. They have done so with the help of the internet and its technology. It is amazing what the world of the internet holds for its users. The internet has an economic system of its own, and it has a currency which it uses for transactions. The language of exchange on the internet is virtual, just like the internet itself is virtual, and thus, the money used to trade items on the internet is virtual.
After the Coronavirus, many companies will still be struggling to get back on their feet, and so they may not be able to employ their former workers, this will cause them to look for solutions online. Bitcoin will become very relevant in the coming days of the virtual market. The virtual world is already experiencing a blooming market flow at the moment. Still, the following days are even brighter, and by extension, those are more glorious days for cryptocurrency asset holders, especially Bitcoin.
THE RESILIENT NATURE OF BITCOIN
Bitcoin’s innovation came as a response to the global economic meltdown at the time of its invention. Its design was so that he could resist the very factors that destabilize other assets of the financial market. Although there has been a considerable reduction in the price index of Bitcoin, its design will speak for it in the days to come. Because of the recent fall in its price index, many have left the Cryptocurrency network. That means much more for those who decide to stay.
Bitcoin will rise in value again because that is what it does.
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