It appears that each time Bitcoin appears like it can break out the new highs; its cost comes back down. After surging this year, price of Bitcoin is down around 50% from the highs. And in turn, lots of people are thinking if it is the good time for buying the most popular cryptocurrency. So, here are a few things that you need to consider prior to making the decision or for more details on it visit howtobuyabitcoin.net.
Turmoil in stock market
With COVID-19 pandemic that has unleashed the wave of fear on global financial markets. Bans on travel, business closures and school, and quarantines are enacted all over the world just in an attempt of slowing down spread of this disease. Investors are scared that such actions can cause global economy to totally fall in the recession, and have sold off the stocks, leading over sharp losses in the markets all over the world.
BTC has historically done really well during the periods of market distress. But, some people see Bitcoin as the chaos hedge, and way to preserve or improve their wealth while other assets have plunged in the value. Current market condition will certainly get considered chaotic; still Bitcoin’s cost has plunged right all along with the stocks. It is disconcerting, as cryptocurrency’s capability of serving as hedge against the market turmoil are its interesting cases for the investors.
For helping to ward off the recession and decrease financial toll from Corona Pandemic on our economy, the central banks all over the world have actually taken some drastic measures for pumping liquidity in this market. Whereas they can potentially help and stimulate our economy, such measures are likely to deflate value of US dollar or other fiat currencies, just by increasing amount of the money accessible.
In a lot of ways, such situation is what BTC was made for. Cryptocurrency has the tough cap on the total supply of over 21 million coins. So, by having the finite supply, BTC was made to maintain the value whereas other currencies lost their buying power because of the inflation. However, till now, central banks’ measures have had very little effect on the price of Bitcoin, and it is not very clear if they can be in a near future.
Higher demand for the digital payments
Coronavirus pandemic is possible to accelerate this trend toward the digital types of the value exchange. WHO is urging the people to use the contactless payments as way to decrease the spread of the COVID-19. Furthermore, with the central banks in many nations quarantining the physical cash for the periods of over 14 days before they release this back in circulation – as novel coronavirus will reportedly survive for many days on the surfaces – an idea of touching cash can get you sick may lead people to look for digital payment technology.