DeutschThe whole world is currently facing the worst economic crisis in decades. It could mark the beginning of a recession that lasts for years. However, this economic turmoil could bring Bitcoin and blockchain technology into the mainstream. The following three key elements could play the main role. Bitcoin and crisis – Three reasons that still speak for BTC:
Crypto Adoption Continues to Advance
The US Federal Reserve’s decision to print trillions of dollars to lower the country’s growing unemployment rate is facing harsh criticism. This step will certainly lead to inflation, which will have enormous effects on hundreds of millions of people in underdeveloped countries. These countries rely on the dollar as a hedge against their own weak national fiat currencies.
The dollar has been a trusted currency for decades, even far beyond the borders of the United States. Due to its endangered hegemony, Bitcoin and other cryptocurrencies are now becoming increasingly attractive alternatives to the US dollar. Many countries had increasingly opted for crypto even before the current crisis, and the fear of a weaker dollar will only accelerate this process.
Bitcoin and Crisis – is BTC Still a Safe Haven?
The current economic crisis has shown that global currencies are significantly weaker than previously thought. Bitcoin has long offered an alternative, as it allows digital assets to be retained and used without relying on centralized institutions. Binance CEO Changpeng “CZ” Zhao is also convinced that BTC can become a safe haven and that the population has yet to recognize the value of Bitcoin.
While the Bitcoin price slump in recent weeks has been very frustrating for crypto holders, BTC hodlers can at the same time rely on the fact that their digital assets cannot be confiscated or devalued by any central authority. This fact could increase acceptance among those who have since lost faith in the existing financial system. Regardless of the volatility, Bitcoin is nevertheless proving to be a very safe option for preserving assets in this regard.
Blockchain and Crypto Space Will Consolidate
The overwhelming number of altcoins hardly find their use in the crypto space. While some of them may still be useful and promising, most serve no particular purpose. Now is the time when a consolidation of the strongest blockchain platforms should take place. This benefits Bitcoin and its competitors, as they have a promise for mass adoption. It will also enable institutional investors and large companies to make the right decisions more easily in the search for solid platforms. This process may be painful for individual investors in altcoins, but it creates a much healthier environment for a long-term blockchain introduction.
The liquidity crisis of the entire financial markets due to Corona as well as the fact that the Bitcoin price recovery overlaps with the halving event are further reasons why Bitcoin will emerge stronger from the Corona crisis. This thesis is also supported by Anthony Pompliano, a co-founder of Morgan Creek Digital. The time after Corona is still far away at the current time, but it will come. Learn how things will continue on the crypto market in the time after Corona.
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