The COVID-19 pandemic has crashed financial businesses all over the world. Many people think that this pandemic is also responsible for the sudden drop in the price of Bitcoin and other cryptocurrencies. With cryptocurrencies such as Bitcoin creating tides and curls in this digital era, businesses need to understand and recognize its importance and stay equipped to gain its benefits.
Is Bitcoin a Safe Heaven?
Since the coronavirus fury, the association between Bitcoin and the assets business has grown. For example, on March 12, the BTC price dropped below $4,000. Many economists think that this happened after the S&P Index in the USA witnessed a sharp drop. The reason for this was because there was an immediate ascent to liquidity, and so, a lot of people had margin calls in equity that had to be satisfied by selling other assets like Bitcoins into cash. This was done to reach those margin calls outside. Though the Bitcoin price has now recovered, it will presumably be a while before Bitcoin prices fly again. There is a lot of skepticism in how things will go ahead and Bitcoin is no exception.
In reality, if you closely observe and study the price of Bitcoin over the years, then you will find that bitcoin is the only currency that can meet the world’s financial requirements. Volatility will decline over time as the market evolves. Market evolving meaning the price will be high and user adoption increases exponentially over the next 10 years. Many new technological advancements such as the lightning network could be used for daily payments along with Android Pay and Apple Pay. It will apparently take a decade from say 2020 to 2030 for the usage of Bitcoin as a payment mechanism to become a pretty mainstream thing.
66% of Europeans Feel Confident About Future of Bitcoin, Study Says
According to the study by Crypto exchange Bitflyer, 66% of Europeans feel that Bitcoin will remain in use by 2030, possibly called to existence because of the powerful Covid-19 lockdowns.
Most Europeans are still not sure about the real use circumstances for Bitcoin in the future or how it will progress within its respective markets. Around 10% showed trust that bitcoin will be an everyday coin or that it will be applied as a security or investment, the study explained.
Conclusion
In reality, Bitcoin is here to stay. Bitcoin is a revolutionary technology based on blockchain and it is here to transform the means we put our data. Today BTC is more of a property and trading goods and people purchase it and don’t utilize it instead they save it expecting greater profits. In future Bitcoin will pave the way for how the economy works.
