You must have noticed the spectacular rise of the Bitcoin in the beginning of last year when the pandemic struck. Despite lockdowns everywhere and the entire world economy taking a hit, the cryptocurrency world remained unaffected. Even earlier, Bitcoins had survived the post 2008 economic crisis. So, it has adapted to economic turmoil in the past and become stronger in the process. A similar situation can be witnessed now which leads us to wonder how the Bitcoin sustained the pandemic.
How Bitcoin copes with challenges that the pandemic has been throwing at us:
- Bitcoin prices reached a record-high of almost $50,000 at the start of the year largely because the Covid outbreak impacted every other asset in the economy. It has grown into what can be called a “safe haven” for investors, a title that was earlier used to describe gold. Gold had always retained its value when markets all around were collapsing. So, investors would choose to invest in it to ensure that their funds would be protected no matter what happened to the economy. Bitcoin had been struggling to attain this status, but the pandemic made it happen.
- In the midst of the pandemic, investors are not keen to step outside. They would rather choose an asset that they can control from home. Since Bitcoin is completely decentralized and digital, buying and selling it online is more convenient during a crisis, as the current pandemic. People staying indoors have had more time to explore the advantages of investing in digital currencies. They have seen how cryptos have performed at a time when other assets have depreciated.
- The pandemic has triggered a dramatic shift towards a more digitalized world. Whether it is buying groceries online or seeking medical consult, everything is happening digitally. The trend had been there even before the coronavirus outbreak but it has become reinforced by the pandemic. Businesses which had so far not integrated digital solutions into their operations have been forced to do so to stay afloat. Remote financial services have become the order of the day. So, given these advantages, a currency that can be bought and sold online is obviously a go-to choice for many aspiring investors and entrepreneurs seeking quick transfers.
- The crypto technology itself has undergone numerous modifications, upgradation, and innovations. Users have so long been concerned about whether Bitcoin and other cryptos were sustainable or not. Incidentally, since mining is energy-intensive and leads to a lot of carbon footprint, people had been arguing against it. But, with alternative energy source being tapped, this concern is gradually fading. Engineers have come up with many green mining solutions over the past few years. So, there are several sustainable mining options today. Hydroelectric mining and solar-powered mining have become popular.
- Finally, as traditional banking services have taken a beating, people’s dependence on cryptos has grown. People now want more innovative and flexible financing options. While some banks are exploring the possibility of launching their own digital coins, cryptos like Bitcoin have attracted consumers more. Since the growth of bitcoin is apparent, the advent of various trading platforms is on the rise. In that respect, the Oil Profit Trading System was recently introduced. It promises lucrative returns on the markets for oil and cryptocurrencies. Visit https://kryptoszene.de/bitcoin-robot/oil-profit/ that talks about an online trading system that uses cutting-edge methods and technologies to facilitate automated trading. For transactions in Bitcoins, there is no need for an account; it makes this a perfect solution for people with limited access to banking facilities. With people all across the world hit hard financially because of the pandemic, it is natural that they would gravitate towards a decentralized financial system.