How is the Coronavirus Crisis Bitcoin’s Greatest Test?

Nowadays, owning a significant amount of assets is extremely important to financially secure yourself when the economy goes down. And, what can be better than having the world’s largest cryptocurrency – Bitcoin as the safest insurance against any economic downturn. 

The potential of bitcoin to change the lives of countless investors no longer need words to support this statement. The recent outbreak of Covid 19 has an adverse impact on nearly every country’s financial status. 

At such critical times, no bank or government seems to take major steps for this cause. But Bitcoin was observed to rescue the lives and properties of many people suffering from this global economic turmoil. 

The Best Way to Earn Passive Income

It wouldn’t be wrong to say that cryptocurrencies are made for times like this when you are only left with the option to use your passive income for financial stability. However, the volatility of bitcoin scared many investors. 

Regardless of bitcoin proving itself as the most profitable, as compared to the stable cryptocurrency, it could still not be considered as a safe haven during the market crash. But, using valuable assistance from experts has always been the ultimate approach of many inexperienced traders of bitcoin. 

How Bitcoin Stood Out the Test of Times?

There was initially no certainty of bitcoin turning out to be the one clear winner against traditional currencies. Later, Bitmex’s research team reported that inflation is coming and bitcoin is expected to have its major sell-off during this time. 

In that regard, the Immediate Edge lent a great helping hand to novice investors to analyze the market cap, trends and perks, downsides of bitcoin accordingly. 

In accordance with this prediction, the novel coronavirus crisis proved to be a great test for bitcoin. Here are a few reasons why bitcoin had to suffer the most when many countries were about to touch the poverty line. 

  1. Numerous Bitcoin enthusiasts were completely dependable on bitcoin to manage their finances and get out of the crises.
  2. With the decreasing traditional currency value; investors looked forward to bitcoin in hope of getting generous returns in less time.
  3. The high volatility of bitcoin made it hard for analysts to do accurate predictions and calculate its rough values in the future.
  4. The Profitable outcomes, independence from the interference of any third party and no government control further made people hopeful of Bitcoin’s rising market capitalization. 
  5. The slow working system of bitcoin and difficulty in utilizing it everywhere give people the reason to look for faster, efficient, and easily accessible cryptocurrencies.
  6. Institutional investors and trading professionals headed for long-term investing on cryptocurrencies to find a haven that they believe bitcoin is not.

All of these immensely important factors put bitcoin in severe perplexions. This made it hard to decide if investing in bitcoin or trusting this well-known cryptocurrency is a possible option or not. 

However, the first jump of up to 40% in the price of bitcoin happened, which did not make many investors happy or content with their high hopes from this particular cryptocurrency. 

Anonymous Creator

Another reason that made understanding bitcoin challenging was its anonymous creator who didn’t give any proper hint for a new digital currency. During the global pandemic, analytics and research workers gain very complexed clues while exploring the profit rate of bitcoin. 

The unknown Satoshi Nakamoto called out bitcoin as the only peer-to-peer electronic cash that increases the chances for bitcoin either to decrease or increase at a rapid rate. The well-recognized software – bitcoin storm also played a key role in predicting the future market trends accompanied by it. 

Final Thoughts

Lastly, the future asset – bitcoin made its way to just another ordinary source of passive income in this global pandemic. Not only because of its volatility that continuously changed its values but also the bitcoin’s working that marked it as an unfit asset for times like COVID. 

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