Cryptocurrency and COVID-19: Corona Virus has Effected the Bitcoin
Bitcoin may provide some of the best solutions to drive a new economy in the post-COVID-19 world.
Aren't we all searching for a safe haven? Whether we mean literal shelter — four walls and a roof over our heads — or something more sophisticated, the craving for a dependable defense against random chaos has always been our instinct.
With the COVID-19 pandemic rearranging society at every level, the allure of a safe haven reigns supreme for our battered psyches. In the realm of financial instruments, the search for the safest of safe havens, also known as a store of value, has taken on a new urgency. Is Bitcoin (BTC) a safe haven? Will cryptocurrency prove to be a store of value above all?
Many Bitcoin believers have been confident in crypto's ability to securely serve as a safe haven. But even the most devout blockchain boosters would admit that the coronavirus is betraying their store of value expectations, at least in the short term, as Bitcoin’s price has not remained resolute since COVID-19 became a global concern. It has exhibited big swings from around $10,000 to a low of near $4,100 in the first quarter of 2020 and now sits at approximately $9,500 at the time of this writing.
While Bitcoin has the potential to shelter value for many more of us than other safe-haven options, we will need a well-coordinated effort among the crypto community and regulators to get us there.
Aren't we all searching for a safe haven? Whether we mean literal shelter — four walls and a roof over our heads — or something more sophisticated, the craving for a dependable defense against random chaos has always been our instinct.
With the COVID-19 pandemic rearranging society at every level, the allure of a safe haven reigns supreme for our battered psyches. In the realm of financial instruments, the search for the safest of safe havens, also known as a store of value, has taken on a new urgency. Is Bitcoin (BTC) a safe haven? Will cryptocurrency prove to be a store of value above all?
Many Bitcoin believers have been confident in crypto's ability to securely serve as a safe haven. But even the most devout blockchain boosters would admit that the coronavirus is betraying their store of value expectations, at least in the short term, as Bitcoin’s price has not remained resolute since COVID-19 became a global concern. It has exhibited big swings from around $10,000 to a low of near $4,100 in the first quarter of 2020 and now sits at approximately $9,500 at the time of this writing.
While Bitcoin has the potential to shelter value for many more of us than other safe-haven options, we will need a well-coordinated effort among the crypto community and regulators to get us there.
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