Use of Bitcoin Set to Explode in the Post-Corona Era?
While the traditional market looks to find its footing in these uncertain times, an interesting effect is occurring in the cryptocurrency market. After the initial panic sell-off of two weeks ago, the market has not only stabilized but is operating in an independent manner from its traditional counterpart. While it’s true the use of Bitcoin did not erupt as many thought it would after the stock market crash, we are seeing brilliant signs of a healthy future for this technology. In the “post-corona era”, cryptocurrency may finally reach its full potential after the global economy looks to recover from over inflation, excessive money printing, and failed government bailout programs.
Use of Bitcoin as a safe haven (it’s not over yet)
Crypto critics slammed Bitcoin as a safe haven option after the COVID-19 crisis crashed the economy. Many thought we would see investors flood the crypto market to store their money while the traditional stock market collapsed. However, what we saw instead was not only a stock market crash but a gold market crash and a crypto market crash. This is not a reason for concern though.
What we saw during the crypto crash a couple of weeks ago was nothing more than panic selling. After that initial selloff, we are seeing a much healthier situation now. Compared to the fiat currency, Bitcoin will always have a limited supply. No one can print more of it and in fact, demand is increasing by the year. But is it a safe haven? Some could argue yes it still is but that depends on the situation.
The results of this recent stock market situation were simply too big to prepare for. Even gold, which is the standard safe haven option could not offer a solution. So yes, the use of Bitcoin as a safe haven is still very plausible in normal market circumstances. With fiat now being printed at a lightning pace, Bitcoin, now more than ever may be an important tool for financial survival.
Use of Bitcoin already more convenient than gold
While we are on the topic of gold, let’s put this debate of gold vs. Bitcoin to rest. Gold is heavy and nearly impossible to carry large quantities of. Furthermore, have you ever tried to pay for groceries with gold? It’s not going to happen. Yes, that’s still hard to do with Bitcoin but that is changing every day where gold has not seen any progress. In addition, crypto can be sent anywhere around the world, anytime, in massive quantities with minimal transaction fees (as of March 2020, the average Bitcoin transaction fee is ~1 USD regardless of size). Hence, once the coronavirus runs it’s course, it’s very possible we will see a brand new era of cryptocurrency.
Eventually, a vaccine will come out and eventually the infection rate will start to decline. Once that happens, the people hoarding large stashes of cash will realize it’s safe to invest once again. The main question is though, where will they put it?
Use of Bitcoin may become more attractive than the stock market
Central banks like the Federal Reserve are printing money at an alarming rate right now. Yet, the stock markets are still going down. Why is this so? These government programs take time. Even if they do end up providing relief down the road, who do they provide relief to? Do they bail out the small businesses and their loyal team of employees? No. They bail out the big banks and financial institutions. It’s a broken system and for hundreds of years, we never had a solution. The use of Bitcoin is the new solution.
With cryptocurrencies, governments cannot simply print new money and bailout big banks. There will be a greater opportunity for wealth disbursement as greedy CEO’s will no longer get their big multi-million dollar payouts from economic collapse. For these reasons, Bitcoin and other top cryptos are a terrific long term investment. Soon, people will come to realize the current system is not fit for situations like this and the solution to this corruption (blockchain/crypto) is already here.
YouHodler: Get more Bitcoin now so you can profit later
It’s not a matter of if the use of Bitcoin will increase in the post-corona era, it’s a matter of when. Hence, YouHodler has a variety of tools to help you stockpile more crypto now so you can profit later when the market recovers.
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