The COVID-19 pandemic has revealed serious problems with regard to the existing financial system. These issues reveal the benefits of Bitcoin.
Consequences of the pandemic
Despite the fact that many economies are slowly opening up again, stability remains uncertain. 2020 will go down in history as the year in which financial markets experienced their worst days since 1987 and the oil price first turned negative.
Bitcoin continues to grow in popularity worldwide, especially as emerging countries with billions of inhabitants begin to recognize its potential. The cryptocurrency has proven its extraordinary resilience in the greatest economic crisis of our time. It even overtook gold as the best-performing share of 2020.
The pandemic has severely curbed the global economy, with the U.S. central bank, the most powerful central bank in the world, having no choice but to print unlimited money. In addition, we see an enormous increase in unemployment.
Partly for this reason, the crisis will not be over when the pandemic is no longer there. We are likely to notice the effects of COVID-19 for a long time to come and this will reveal the problems in today’s financial. Bitcoin will therefore be able to see a huge rise in popularity this year, so we recommend that you keep an eye on the news.
Traditional financing needs to be renewed
The moment the Federal Reserve announced that it would print “infinite money” and the value of oil fell, the value of Bitcoin grew. People are beginning to realize that we can no longer continue to rely on traditional forms of financing. Debt has grown around the world for decades. It seems we have learned nothing from the 2008 global financial crisis. This health crisis is the icing on the already crumbling pie on which our society is built. But with Bitcoin, 2020 can be a different story.
Bitcoin’s ability to soar while traditional financial markets are struggling is not only a sign of its resilience, but also of its role as a refuge. On January 3, 2009, when Bitcoin’s first block (the Genesis Block) was mined, the mysterious creator, Satoshi Nakamoto, left a message in the block’s raw data: “The Times 03 / Jan / 2009 Chancellor on the verge of a second bank rescue plan.”
Twelve years later, the message has never been so clear: Bitcoin was invented to promote the complete reform of a financial system by separating money and state.
Bitcoin will emerge even stronger from this crisis
Tim Draper said, “It will be Bitcoin, not banks and governments that will save us. ” The assets that investors have relied on in the past can no longer be trusted, and macroeconomic forces are evidence that existing forms of trading may not withstand another crisis.
There is a very simple reason why Bitcoin is a reliable asset compared to traditional fiat. There is now officially an “infinite” amount of USD, but there will never be more than 21 million Bitcoins. Hyperinflation will continue to plague our economic systems as long as traditional assets continue to print huge amounts of money.
Bitcoin is designed to be anti-inflationary. This is part of the code. In addition, the BTC market is extremely liquid, because it is very accessible.
We can learn a lot from Bitcoin. Unlike fiat, Bitcoin is immutable and decentralized. At the moment, volatility is a result of the small market capitalization, its function as a speculative currency and the fact that many people treat Bitcoin the way they treat their shares.
The real problem is that economies are driven by inflationary currencies. In a crisis like now, this can collapse like a house of cards. If money keeps losing value, there is no point in saving anything. Bitcoin is thus strengthening its role in the market as governments continue to print money.
Bitcoin is “Plan B”
Negative interest rates are just around the corner as the US Federal Reserve cuts interest rates to zero. It’s time for the world to see Bitcoin as Plan B of humanity.
Every day more Bitcoin investors are added and the online searches for Bitcoin are also increasing. The bullish outlook is back and we have to recognize that maturing the assets is leading to a globally recognized mark-up.
The world is venturing into dangerous territory as the market slowdown is just beginning. The world economy has not seen anything like it since World War II. There will be more damage and more casualties, both literally and figuratively.
Bitcoin should be used for the real purpose and function for which it was invented: to protect people from the fall of the traditional global financial system.
We cannot continue to rely on age-old forms of financing that use hyperinflation as a means of survival. It is time to take back control of our financial freedom.