Bitcoin Is Thriving During the COVID Pandemic
The pandemic-ravished 2020 was an exceptional year for global markets. Lockdown-hit economies contracted, unemployment soared and financial markets experienced record volatility where even oil futures traded negatively for the first time ever. In short, many people suffered not just from the pandemic itself, but from its economic impact.
However, for Bitcoin, the pandemic in 2020 coincided with an annual gain of 305%, hitting record highs. From a year-low of $4,748 in March, as pandemic reality took hold, Bitcoin increased to just under $30,000 by the end of the year. Since then, as the coronavirus rages globally, Bitcoin has surged to $55,000.
Yet, it is anything but a coincidence that Bitcoin is thriving during coronavirus times. The global pandemic proved that Bitcoin can be both a safe-haven, inflation-proof investment and an investment for growth. turned out to be one of the most resistant to turbulent volatility experienced by all global markets during this period and proved that not only is Bitcoin COVID-19 immune, but it also positively thrives under the conditions of the pandemic or indeed any other global crisis.
Stimulus measures put in place by central banks to combat the Covid-19 pandemic and its economic effects have cut interest rates to around zero or even in negative territory for some countries, leaving the barest minimal returns on lending and investing. In an era of low-interest rates and low investment returns, Bitcoin, with its limited 21 million supply and increasing demand offers substantial investment growth even for those sitting at home buying just a tiny fraction of Bitcoin.
So much so that Wall Street giants Citigroup, Goldman Sachs, and BlackRock have all invested in Bitcoin. Meanwhile, Elon Musk’s Tesla invested $1.5 billion and Square Inc, owned by Twitter CEO Jack Dorsey purchased a further $170 million worth of Bitcoin to add to a previous $50 million BTC buy. Whilst investing in the S&P 500 Index offered a 16% return in 2020 and Gold a 25% return, Bitcoin’s 305% has caught the attention of every hedge fund, big bank, and private investor. By March 2021, Bitcoin already posted an 80% increase and attracting the attention of even more investors looking for growth and profit.
The success of Bitcoin under the pandemic can also be attributed to its usage and adoption. As the world moved further online - conducting lessons, meetings, yoga sessions, buying clothes, and weekly shops, just about everything the world now did online, and the actual day-to-day use of Bitcoin and other cryptocurrencies increased dramatically. The increase in adoption was given a massive boost when PayPal, the payments behemoth announced it was accepting Bitcoin. Now, Bitcoin is mainstream with the pandemic changing how we shop and how we pay.
Lastly, Bitcoin and blockchain technology means no matter what government regulation and failure there can be, and COVID’s effects have impacted nations economically and politically, Bitcoin offers a low-cost way to pay and get paid anywhere and for anything. Bitcoin’s stable usability makes it even more attractive in times of global economic, political, and health crises.
Despite the rollout of the vaccine, the economic effects of the pandemic will continue to be felt long after 2021. The functionality, its crisis-immunity, the inflation-busting profit-potential, and its growing global adoption make Bitcoin even more relevant in a world that has moved online and embraced the Bitcoin revolution,
Invest in Bitcoin at Cointandem Exchange, one of the best investments possible in volatile and uncertain times.