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Bitcoin and the Covid-19 Economy

Since the beginning of 2020, the world economy has been upended by the spread of the coronavirus and the lockdowns and quarantines that have ensued in an effort toward containment. Further, typically lucrative assets such as oil have plummeted due to the sharp decrease in demand that responses to the coronavirus have also wrought. Bitcoin was born in 2009 partly as a response to the 2008 financial crisis, rapid devaluations, and runaway government spending and money-printing that took the helm in economic abatement efforts. How is this currency crisis affecting Bitcoin eleven years after its birth?

The Tokenist, a market research organization, put out a report exploring this subject, titled “Comparing Public Bitcoin Adoption Rates in 2020 vs 2017.” The report demonstrates that with this Covid-19 reality settling in for the long haul, trust in Bitcoin has ballooned 29% over the last three years, as trust in traditional banks and financial institutions continues to dry up. Considering the current state of traditional safe-bet investments and the incredible fallout of the real estate market during the 2008 financial crisis, it is no surprise that The Tokenist found that trust is growing in Bitcoin over investments like gold, stock, and real estate. The data that this report gathered came from a survey of 5,421 participants in 24 countries, taken in April 2020, as well as several surveys from 2017. While faith in traditional financial institutions and assets have been waning over the last decade anyway, Covid-19 has accelerated the trend. 

Further, The Tokenist found that 47% of the recent poll’s respondents actually feel more positively toward BTC as a long term store of value than they do big banks, and 45% preferred Bitcoin over stocks, real estate, and gold. Interestingly, 61% of all respondents and notably, 78% of millennials are familiar with BTC. It appears that the intangible nature of BTC is no deterrent to millennials, who feel by 59% that most people will have adopted Bitcoin within the next decade. 

It looks like Bitcoin is here to stay, and to the generation that will soon be most responsible for not only innovation but also the amassing of wealth and creation of longterm savings, it is a staple whose value and relevance is beyond doubt. 

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