Is The Use Of Bitcoin A Suitable Way To Get Over The Covid-19 Crisis?

Sep 22, 2020
Is The Use Of Bitcoin A Suitable Way To Get Over The Covid-19 Crisis?
Is The Use Of Bitcoin A Suitable Way To Get Over The Covid-19 Crisis?
Sep 22, 2020

The covid-19 pandemic has led to a never known economic crisis, with the International Monetary Fund (IMF) calling it the lowest recession since the Great Depression. Companies earnings estimates are turning unknown and many traditional investments have taken a strong hit across the board. The crisis has investors struggling to find safe haven assets, and more people are now asking whether cryptocurrencies, mainly bitcoin, are a satisfactory investment. 

Based on the crypto analysts of Japanese financial company, they have declared that the stock market may lose its pull after the coronavirus crisis due to the downfall of demand for many companies’ products, arising in long-term declines in corporate profits.  

Bitcoin went through its third fifty-percent reduction last month without much public debate. Nonetheless, there isn’t any clear-cut explanation to why bitcoin splitting happens, most crypto experts concede an explanation in which concerns yields. 

Evidence showed that bitcoin market tightening and dynamics of price development in the period of mining reward decline, which lowers supply in the market. 

For the sake of the optimism by the crypto community regarding Bitcoin’s “anti-crisis” spirit, Gulf Brokers forewarns against strong risks that imply all the crypto currencies, including Bitcoin. Basically, there are two dominants of them: one is an arrival of even stronger crypto which would redirect the demand from Bitcoin and, thus, cause its price drop. The alternate one that we are familiar with, drawn by governments and central banks. As the power of Bitcoin grows, there are more tendencies to regulate the crypto currency. No matter what kind of regulation to be expanded, it is almost sure that it will go against the value of Bitcoin. 

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