The recent rash of coronavirus has led to a decline in markets, including cryptocurrency markets and Bitcoin. The virus has led to a stay at home order for much of the world, meaning that people are at home, with time to research such things. The question, of course, is how to spread the word. Perhaps it’s best left to the experts, like Coinbase, who continue to entice people onto their platform with free crypto.
Crisis Mode
Bitcoin, however, is meant to perform in a crisis.
People expect it to perform in a crisis.
But, has Bitcoin been performing in a crisis?
The Bitcoin price is not the only thing to look at. If we look at other metrics of Bitcoin, like the technical difficulty, then we see that the popularity of Bitcoin is as strong as ever. While there is some risk that smaller miners may have to turn off as a result of lower BTC prices, what we’ve seen so far doesn’t indicate that much has been lost at all.
Looking at the Bitcoin price, though, we see that it will probably rise with the halvening. This will benefit all, but still miners will have to contend with a 50% drop in income for a time. Actual fiat value will always fluctuate. Many expect the price to jump, as it has historically, next month after the Bitcoin reward drops by half.
The irony of Bitcoin is that it turns you into the sort of person that suffers least without it. The people that will suffer the most as Bitcoin gets more popular are the ones ignoring Bitcoin now. pic.twitter.com/rlHUzfcrhb
— Samuel Sipho (@SamuelSipho7) April 4, 2020
Bitcoin is thus seeing a true test of its values as a result of the coronavirus. The virus has brought about a real and legitimate questioning of fiat currency, as the government pumps trillions of dollars by way of bailout into the economy. It remains to be seen how much of a real impact that will have. The bottom line is that if the economy is going to thrive, people have to be able to get back to work.
Bitcoin’s Time to Shine
Bitcoin has an opportunity to shine. One version of the bailout bill had suggested an introduction of the digital dollar, which would lead to an overt acceptance of cryptocurrencies, some argue. Some others argue that digital fiat currencies will nullify the need for crypto. Personally, I’ve argued the opposite, saying that cryptocurrencies and fiat currencies inherently serve different purposes. Central banks issuing digital currencies is in fact a good thing for crypto markets, and people.
But, the US Treasury won’t be doing any such thing right away.
Most of the coronavirus stimulus checks will be going to essentials, like rent and groceries, probably, but people might be smart to invest in Bitcoin. If Bitcoin jumps after May, it could be a way to seriously increase the power of your stimulus check.
People, though, out of work as they are, are unlikely to be interested in investing in exotic financial instruments at this point. That’s just the nature of the beast. Therefore, coronavirus is really putting Bitcoin to the test, as demand is all that props up the price in the end. If demand drops enough, so too will the price.
Coronavirus is a problem for all sectors of society, but Bitcoin particularly has a lot to contend with.
