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5 Stunning Reasons Why Bitcoin Becomes a Better Investment During COVID-19

Highlights

    This pandemic raised the bar of the investor’s search for a safe haven.

    The decentralized network of Bitcoin which avoids any involvement of banks and government excites new investors

    Bitcoin supporters and promoters bet that Bitcoin could save the economy from the COVID-19 devastation

Bitcoin and other altcoins have witnessed a major breakout recently. The adoption rate has surged alongside the surge in the trading volume and market capitalization. This article presents the realistic reasons why investors are moving towards Bitcoin in this pandemic situation.

Top 5 Reasons Behind Bitcoin Investment During COVID

Investor Find Alternative Hard Money in Bitcoin

The COVID-19 pandemic has brought the economy to its knees with most of the world imposed a lockdown. With all the businesses shut, the monetary system crashed miserably with almost no circulation of the fiat currency in the market.

In this critical solution, investors find alternative investment ways to safeguard their funds. Therefore, Bitcoin attracted many investors as they found a substitute form of Investment. 

Bull Price Factor 

Bitcoin price has almost doubled in the last four months from the time the pandemic situation initiated. In March 2020, when the Bitcoin price was near $6400 surged to $11870 at the time of reporting.

During the pandemic, Bitcoin also witnessed its halving event which resulted in a drop in the hash rates then. But it recovered significantly and recorded its all-time high of 124THs recently. This clearly indicates more people mining Bitcoin which may pump up the price in the coming days.

Bitcoin Is Immune During the Time of Crisis

Bitcoin is decentralized, which is the prime nature that maintains anonymity. The absence of any controlling body(as in a centralized platform) could prove Bitcoin as a lone savior during a crisis.

Recollecting the 2008 financial crisis when the bank and the financial institutions broke down amid the real estate bubble. Then Bitcoin was very new to the market and was not capable of handling the crisis. Therefore, the monetary system collapsed which resulted in inflation and recession which impacted globally.

Bitcoin is an alternative for traditional assets as Gold

To date, the precious metal gold was noticed as a traditional asset and a mode of investment. In fact, the US dollar too was backed by the gold standard. Currently, the gold price has also touched its all-time high. But the unique features of Bitcoin makes it more investment material than gold.

Bitcoi Price in Gold Ounce – Highcharts.com

As bitcoin is more divisible, portable, scarce and mainly they are predefined and limited to 21 million coins. Hence, bitcoin can be considered as a substitute for gold and other investment options. Moreover, the return of investment(ROI) of bitcoin in the last five years is the highest compared to Nasdaq, the Nikkei, or the DOW Jones.

You know – Schiff and Pomp Live Debate on Bitcoin and Gold was No Less Than Fire

Access to Low-Cost Cross-Border Payments

Most of the Bitcoin holders use the digital asset as the means of transfer of funds also internationally. The cross border transfers usually include bank transaction fees which might be higher at some institutions. 

With Bitcoin, one can transfer them to any part of the world. Moreover, the recipient can easily liquidate the digital asset very easily. In many parts of the world, bitcoin is used as a means of payment and redeemed for their purchases rather than investments.

If you are new to Bitcoin industry – this famous comedian Bill Burr’s Bitcoin story will surely excite You

Conclusively, Bitcoin is the most exciting and promising cryptocurrency which made many millionaires. And its growing adoption in the current crisis has indicated the long and secure future of the digital asset. However, many analysts and researchers predict bitcoin to touch $100K or more in the coming days.

What’s in your investment portfolio? Did you consider Bitcoin as an investment during this pandemic? Let’s discuss via Twitter – tag us @CoinpediaNews

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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