Is Bitcoin A Shield Against Global Recession?

The previous year was unlike any other, with a worldwide pandemic, economic turmoil, nationwide lockdowns, and travel bans, among other items. However, one financial commodity has been on the upswing: Bitcoin. The cost of the new digital currency has recovered from Rs 6,00,000 in March 2020 to about Rs 43,90,000.
Amid a 600 percent price rise, the surge in Bitcoin and other cryptocurrencies seems to be continuing. Millions of institutional investors have jumped on the Bitcoin trend, thanks to developers like yuanpay group who are attempting to render Bitcoin investment easy.
Bitcoin – The Strongest Cryptocurrency
The majority of people are searching for bitcoin as a way to shield themselves from the looming global recession brought about by the spread of Covid-19. Asset managers such as Microstrategy, Tesla, Square Corp, and others shifted their stock holdings to Bitcoin, claiming that it was a strong inflation-protected store of value.
A slew of new cryptos has entered the fray, diverting some professional traders’ attention away from the race. Nonetheless, with a gross market capitalization of $1.15 trillion, it is the most valuable cryptocurrency, surpassing the overall market capitalization of the world’s three biggest banks.
Are Predictions Becoming True About Bitcoin?
According to economists, if the recent fashion holds, Bitcoin could surpass $100,000 by the end of 2021. The projections are built on the stock-flow-model, which has a 94 percent correlation with the Bitcoin price.  This model is used to determine how scarce a commodity is, such as gold.
One such trend is crypto exchanges‘ expansion into financial institution facilities, such as leasing and investing, with cryptos as leverage. Unlike investment banks, where trading stocks requires the use of a broker, cryptocurrency exchanges provide consumers with direct tariff-free trade 24 hours a day, seven days a week. Aced with poor or negative interest yields on stocks, investors and asset managers are turning to the cryptocurrency world.
Major Concerns
‘Is this a scam?’ ‘Is decentralization a fully plausible alternative?’ ‘Will halving destroy the system?’ and so on were early questions about Bitcoin. Many of these questions have now been resolved after a decade. Bitcoin runs on stable software, and it does not crack.
At about the same time, Bitcoin is being more closely affiliated with investment firms such as Tesla and Microstrategy. As protection against economic instability, several institutions are now considering turning their cash deposits into Bitcoin.
Bitcoin has moved closer to $100,000 than it has to $0. The latest advances in the field of Bitcoin are evidence that it is on its way to being a common asset class.
Final Say
Since October 2020, Bitcoin has risen to new all-time records every month. It recently crossed the $50,000 threshold, and it appears to be moving toward $60,000 fast.
Indeed it would be better for an individual to enter the trading sector sooner in 2020, it would not be too late to participate in Bitcoin now, as long as you invest just what you can manage.
There could be fluctuations in its cost, so even a modest investment in Bitcoin today could pay off handsomely in the coming years.
Based on the data and developments in the crypto industry, we may conclude that Bitcoin has a lot of room for development. Its value is only expected to rise in the future.
Consider how mobile phones have surpassed conventional landlines as a technology. Since half of the adult population worldwide lacks access to financial markets, it’s close to digital currency. Bitcoin and other digital currencies could be able to help conventional financial networks catch up.

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EWN

Comments


    • deki

      10 September 2021 • 01:27

      Bitcoin and other cryptocurrencies will be drop down soon, no way to be so high anymore.

      Reply

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