No doubt bitcoin has gone through a rough couple of months this year, but then again, so has every asset.Bitcoin Could Be Big Again SoonIt seems like everywhere you look – whether it’s Asia, America, Europe, etc. – people are dealing with the circumstances surrounding COVID-19. The virus has done harsh damage to the global economy, resulting in several assets and markets falling by thousands of dollars since early March.However, some analysts believe this won’t be bad for bitcoin in the long run. That the situation is likely to present a positive outcome for the world’s number one cryptocurrency by market cap.Brandon Mintz – CEO of the bitcoin ATM provider Bitcoin Depot – explained that right now, despite some recent surges, bitcoin is still stagnant compared to where it was in
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No doubt bitcoin has gone through a rough couple of months this year, but then again, so has every asset.
Bitcoin Could Be Big Again Soon
It seems like everywhere you look – whether it’s Asia, America, Europe, etc. – people are dealing with the circumstances surrounding COVID-19. The virus has done harsh damage to the global economy, resulting in several assets and markets falling by thousands of dollars since early March.
However, some analysts believe this won’t be bad for bitcoin in the long run. That the situation is likely to present a positive outcome for the world’s number one cryptocurrency by market cap.
Brandon Mintz – CEO of the bitcoin ATM provider Bitcoin Depot – explained that right now, despite some recent surges, bitcoin is still stagnant compared to where it was in mid-February. The analysis makes sense, in a way. Yes, bitcoin has spiked beyond $7,500 at press time, but it was trading for well over $10,000 two months ago, so if BTC is going to make any serious impression, it’s still got room to improve itself.
However, Mintz is confident that bitcoin will do so, explaining:
While the price per coin may stagnate during a period of aggressive economic deflation, the inherent buying power of the currency will actually rise, possibly quite significantly.
Monday was harsh for many assets considering the oil market found itself tanking hard. It’s unclear how a simple expiring futures contract in oil could do so much damage, but following the drop, stocks also saw themselves taking a tumble, while bitcoin and other major cryptocurrencies also fell.
Holger Zschaepitz – a macro analyst – tweeted:
The oil price rout will send a deflationary wave through the global economy.
These words, however, may have been uttered too early. After all, at the time bitcoin was trading for about $6,700, but it has since spiked significantly to reach a whopping $7,500 in just a few days. Stocks have also recovered, and oil itself, while not where it was before Monday’s slip, has risen by more than 40 percent, and is now trading for more than $17 per barrel.
Still, some believe cash is likely to reign supreme for the next few months given the uncertainty of the entire economy. Erick Pinos – ecosystem leader for the Americas at Ontology – explained in an interview:
Unlike inflation, when people try to get out of the dollar because it’s losing value, during deflation people are more comfortable with the dollar because it’s value is going up.
We Believe in Crypto!
Marcus Swanepoel – chief executive of Luno – still has high hopes for bitcoin, explaining:
Over the last five years, bitcoin has consistently outperformed most other major asset classes, so it is highly likely this trend will continue, especially with the increased fragility of the existing financial system we’ve seen over the past few months.