Do you really think that this pandemic was a good time for bitcoin to shine? Well, how far we have seen or research, it was not. There are so many factors lying behind this and you must know all of the knots before calling it a safe haven. We also used to call bitcoin a safe have but is it really so? To be honest, even if it was a safe haven, it failed to prove so.
The answer has to be cash. We know the asset is important but would you be able to buy essential by asset? Exactly that’s where cryptocurrency has failed and couldn’t shine as it should have been. We too consider the pandemic time from cryptocurrency to shine but it couldn’t do accordingly. Since the outbreak of COVID-19, the value of bitcoin fell below $4,000 and we know it’s huge.
We have seen a sharp decrease and a hell lot pf investors have to choose to liquid the assets like Bitcoin into cash. The liquidity has become a major issue and we assume this is also the reason behind it.
However, Bitcoin has started to recover as in the last few weeks the value has lifted up to $7,000 and it will grow up according to our research.
Is Bitcoin A Safe Haven?
To be honest, bitcoin has not yet reached the place of safe haven like silver or gold. There are a few factors behind bitcoin being a safe haven but the major one would be the fact that most volumes are due to trading.
Eventually, the US government is pumping billions of dollars into the economy and as long as the dollar will remain strong, bitcoin will face difficulty. It would not become easy for bitcoin to replace that. Hence, we would keep believing that bitcoin will take its place in the future and people will show more acceptance towards them. So, the logic behind the bitcoin to shine during the pandemic was nothing but a fuss which was never possible at least for anything but liquidity.
What will be store for bitcoin after the recovery of the economy?
You can not deny that COVID-19 had a huge effect on the nascent industry of cryptocurrency and people have been dealing with plenty of issues lately. Starting from liquidity to regulation, everything has become major issues in this industry. However, when the pandemic time is not yet over but we are getting back to our regular life because we have no other option left, many companies have started building interesting products but the fuss about bit coin is not totally gone.
Though people can hardly call it anything but a mainstream asset, there is a lot to be institutionalized. In fact, governments are making the whole buying process easier when it comes to bitcoin so we can hope that bitcoin will not face that much difficulty in the future. But, till the whole pandemic thing is over and we are no longer afraid of the Coronavirus, bitcoin will have to struggle amid all the uncertainty. This has been highlighted by the whole COVID-19 situation and we can not avoid it.
Let’s hope for the best and the bitcoin might have failed to shine in the time of COVID-19 but we believe that it will shine once the situation gets better. We need to have faith in bitcoin or cryptocurrency and this liquidity need will get over soon. Hence, we will have to look forward to the asset all over again.