The COVID 19 pandemic has been devastating for the whole world. Millions of people lost their lives and those who managed to survive could probably be facing another crisis. It’s no secret that the coronavirus has brought the global economy on its knees.
The virus has crippled stock markets all over the world and has shown how vulnerable fiat currencies can be. This has convinced many to turn to cryptocurrencies such as Bitcoin.
What Makes Bitcoin a Safe Currency?
The existence of Bitcoin goes back to 2009 and there are many reasons this cryptocurrency gained worldwide attention. It’s a currency not bound to any authority which means that its users have a lot of freedom in its usage. The fact that it isn’t bound to any authority also gives Bitcoin users a certain level of autonomy and makes their personal and financial information secure. Furthermore, peer-to-peer transactions are provided making transactions faster and cheaper.
Back in the beginning days, Bitcoin was a revolutionary currency set to bring changes to the financial world. During the pandemic, it has proven to be much more than that. Its potential has shown that it might become a financial haven. As mentioned before, the coronavirus affected stock markets all over the world.
The European stock market is one of the many examples. Unfortunately, it faced a sharp decline that was bigger than the one in 2012. Germany’s DAX index was lower by 2.6% and the Pan-European Stoxx 600 index was also down by 2.6%. Recently, the prices of European stocks went up thanks to the EU’s stimulus budget deal but no one knows how long they’ll stay that way.
Because of the pandemic, there has been a surge in the usage of fintech apps. This because Bitcoin allows remote payments something that was thought of as a convenience in the beginning but it turned out to be a necessity during these hard times. This is good news for anyone using a Bitcoin trading app since they’ll be entering a market where the price of the cryptocurrency is rising. Furthermore, these apps use real-time data that helps you make the proper analysis before making an investment decision.
How Is Bitcoin Doing Today?
Unlike the stock markets that have had their fair shares of ups and downs, Bitcoin has been doing pretty good. Statistics show that Bitcoin’s price index has been steadily increasing since the second half of March. In addition to that, recent news show that Bitcoin’s value has risen to $9,500. Time will tell whether this value will hold up but traders are optimistic.
The US OCC has allowed federal banks to provide crypto custody services to clients. This is a good initiative on behalf of the US because crypto investors will be able to keep their digital assets in the same banks they keep checking and savings in.
The federal banks of the US aren’t the only ones with an open mind. UNICEF has also turned to cryptocurrencies in the fight against the pandemic. They have announced that they’ve had several Bitcoin donors in the past few months and are looking to bring a big one on board. The fund known as the CryptoFund has already been provided $100,000 fiat money to help with the development of open-source digital services that will manage the health, education, and economic problems the pandemic has caused.
Since banks and international institutions like UNICEF have turned to Bitcoin in the hopes of tackling the economic crisis then it’s clear that this cryptocurrency will have an important role in the months to come. Of all the facts are taken into consideration then Bitcoin and other cryptocurrencies might be a significant tool in battling the COVID 19 pandemic and bringing the economy back on track.