Coronavirus: Impact on Bitcoin and its future

Many financial markets have been affected by COVID 19, cryptocurrency market is also one of them. Bitcoins is one of the most famous cryptocurrency that many investors have been interested in since a decade now. The coins are also traded on various online platforms and apps like the https://bitcoinchampion.io that are assisting the buyers and sellers earning amazing profits. Analysts have identified ways the pandemic has affected the bitcoin industry and what the future holds for bitcoin lovers.

Correlation between equity and bitcoin market.

It was found out that during the pandemic the bitcoin market trend followed the trend of shares and other equity markets. This means that when the shares saw a decline in the prices, so did the bitcoins. The corona virus made the economies suffer a lot. The lockdown reports showed the lowest activity in the stock market and the overall economy saw a downfall.

Read also: People Falling for Bitcoin Scams Rapidly

Because people were in need of liquid assets and cash, they felt the bitcoins in digital wallets weren’t much of a help in the real world crisis, so they converted them into cash they needed. Finding it hard to survive with almost blocked income in the lockdown, people liquefied their bitcoins. Thus, the price of bitcoin fell dramatically.

Will the prices rise up again? 

Well it is speculated by the experts that it may take some time for the bitcoin prices to rise up again. Many crypto investors have withdrawn their investment from the bitcoins due to the uncertainty that revolves around it.

This has further put the new investors in a less confident position. The stability in the cryptomarket and the overall economy will take time given the damage the pandemic has caused. So it is very much likely that the value will increase but at a gradual pace.

Has bitcoin replaced gold?

We have seen while many investment plans are still pending, people see that bitcoin is on the rise again now in recovery from COVID. This has led to investors thinking if they can invest in it and maybe use the appreciated value later on when they are in need just like gold. However, it is only stupidity to think that bitcoins can replace gold. The truth is that bitcoins is not a legitimate source of currency and is not backed by the state. It is mainly dependent on its continuous daily trading. So one day it is up and suddenly it is down the other day mainly due to the trading. It is not a saving tool.

What’s in store for bitcoin? 

While the world’s economies are recovering from the pandemic hit, the cryptocurrency market felt they had already a lot on its plate in addition to the virus crisis. Not much can be seen except that it will be on trend again. Having said that, the Bitcoins industry must get regulations and legality for it to become another powerful financial market for consumers.

It has trust issues due it being popular in black market transactions and still faces issues like scams and frauds due to no institution overseeing its activity. The uncertainty revolving around the bitcoin industry even now in the corona recovery period is an eye opener for the regulatory authorities.

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