Why Bitcoin as An Investment Option Is Not Expected to Suffer from Coronavirus

CIOReview Team | Tuesday, 28 April 2020, 09:19 IST
Bitcoin

Every time there is a natural or man-made emergency, the global financial markets crash. This has been going on for time immemorial and governments and policy makers still have not found a way forward from these.

One of the biggest criticisms of fiat currencies is that they are not resilient enough. They are easily impacted by disasters, wars, trade wars, hostilities and nature’s fury. The catastrophic failure of heads of governments, central banks and financial institutions is felt on the poorest sections of the society.

In this article, we will look at why the Coronavirus Pandemic is forcing everyone in authority to look at Bitcoins and other cryptocurrencies as a viable and resilient model.

Which are the sections, which are most impacted by Financial Depressions?

Middle class and lower middle classes invest their savings in investments with the hope of being safe. However, every time the market goes for a tumble billions of dollars of their hard- earned investments turn to dust. The world has gone through many such disasters, but still, people who are in a position to take these decisions, do not fare for the masses.

The need of the hour is to give traditional financial systems a serious rethink. Why cannot we isolate the effects of disasters from our financial systems? This will help billions of people all over the world protect themselves, not die from hunger and continue living in a much better way.

Can Bitcoin emerge as a viable and stable Financial Asset in 2020?

Bitcoin was founded as a response to the financial crisis of 2007 and 2008. Its mythical Founder, Satoshi Nakamoto stated in the Bitcoin Whitepaper that the cryptocurrency is free from external influences. This means that factors like recession, inflation and natural emergencies do not have an effect on the valuation.

The aim of Bitcoin as a cryptocurrency is to establish one single digital currency that holds the same value in every part of the world. This frees up currency manipulations, speculations and other negative implications that authorities have on fiat currencies.

Many people have the opinion that because any real assets do not back Bitcoin, it does not hold any value. A dollar or a pound boasts of a certain value, because the government says so.

Are Bitcoins and other Cryptocurrencies a viable source of Investments?

When Bitcoin first emerged, the price of ‘One Bitcoin’ was a few dollars. In late 2017, the price of that same Bitcoin had skyrocketed to over $20000 USD! As you read this article, Bitcoin is trading at $7000 USD. Financial experts and investors predict that the volatility associated with Bitcoins is gone.

In 2020, Bitcoin is expected to surge in value and appreciate. This is not only because of the Bitcoin halving, which is going to take place in May 2020, but also because of different reasons. Many nations, including India are taking a serious look at Bitcoins. China too has advocated a positive response to cryptocurrencies.

The world economy wants to protect itself from shocks that cause it to come crashing down. This is why private investors and asset managers are asking their clients to invest in Bitcoins and other cryptocurrencies. The rise of Bitcoin trading platforms has also enabled normal people to take part in investments.

You can register yourself to learn more about Bitcoin investments and trading here: https://bitcoin-treasure.com

Conclusion

It is high time that policy makers and authorities try to change the rules of global finance. If this is not done, every emergency will cause billions of people to suffer. The world is slowly moving towards cryptocurrencies and Bitcoin’s presence and rise in valuation over the last decade is a testament to that fact.

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