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Bitcoin Updates in the Time of the Coronavirus

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At a time of unprecedented upheaval in the traditional markets due to the worldwide coronavirus pandemic, is Bitcoin plunging as well or is it a safe haven? Would are Bitcoin investors to expect from cryptocurrency in the uncertain future to come? Perhaps a result of the political fallout and economic tumult, decentralization is to play a stronger role in the world post-coronavirus. While tourism, restaurants, travel, and many others are being pummeled, this is a time of great opportunity for the likes of healthcare and health technology. Whether Bitcoin is a safe haven at this time is a matter of whether the factors affecting its rise and fall are seen as forces of detriment or opportunity.

Panic sell

For those investors who have recently bought into cryptocurrency and who do not hold a great deal of it, this is a moment in which many may panic-sell and return to more traditional holdings. Similarly, some investors must sell in order to convert their crypto holdings to pay for living expenses at a time when most individual’s incomes have suddenly ground to a halt. These types of sales do drop cryptocurrency prices. 

Since cryptocurrency is only a tiny share of the overall financial market, it is inevitably affected by enormous upheavals such as the one in play now; however, because Bitcoin is of a finite supply that is unwavering regardless of traditional financial markets, it is a safer bet. Interestingly in the past few weeks, institutions in both India and Korea have opened freer pathways forward for the crypto industry. 

Print money

In some of the bailout situations occurring around the world and in the US, long-term problems will follow the current stopgaps, which may result in governments just printing more money. The depreciation of fiat currencies is obviously problematic when your assets are held in those currencies. Obviously in that case, Bitcoin is a safer bet.

The beauty of decentralization at times like these is that the teams powering blockchain technology are dispersed throughout the world. Therefore, while this pandemic is worldwide, it does not affect all areas simultaneously or equally, allowing for growth opportunity in areas where teams are able to continue working. 

To conclude, we may see some currency fluctuations, as a result of panic-selling or of sales that are necessary for investors to cover living expenses while traditional economies are paused. However, the likely effect of government bailouts will be the devaluations of fiat currencies, which cannot occur with the likes of Bitcoin, the quantity of which is finite. Therefore, the financial world post-coronavirus is headed toward decentralization. Cryptocurrency investment is the long game, and to truly see results and the fruits of investment, one must be in it for a stretch far longer than this crisis looks to be.

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