The record unemployment experienced in the United States has brought about a whole new appreciation and love for bitcoin and its altcoin cousins, new research shows.No Job? Bitcoin Can HelpThe U.S. has witnessed millions of people losing their jobs and filing for unemployment in the wake of the coronavirus pandemic, with weekly filings growing by millions of people at a time. Businesses have had to shut down unexpectedly as President Donald Trump issued a national emergency in late March and enforced a full closing of the economy until the pandemic had subsided.As a result, businesses have been forced to say goodbye to their employees or have been required to put a great number of workers on furlough. Either way, there are many people not working today, and have sought help from digital
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The record unemployment experienced in the United States has brought about a whole new appreciation and love for bitcoin and its altcoin cousins, new research shows.
No Job? Bitcoin Can Help
The U.S. has witnessed millions of people losing their jobs and filing for unemployment in the wake of the coronavirus pandemic, with weekly filings growing by millions of people at a time. Businesses have had to shut down unexpectedly as President Donald Trump issued a national emergency in late March and enforced a full closing of the economy until the pandemic had subsided.
As a result, businesses have been forced to say goodbye to their employees or have been required to put a great number of workers on furlough. Either way, there are many people not working today, and have sought help from digital assets given that they have no means of obtaining cash like they normally would through a regular work position.
One of the reasons that bitcoin has become so trustworthy in people’s minds is that it cannot be issued the way standard money is issued. For example, late March saw the approval of roughly $2.2 trillion in economic aid as a means of keeping the U.S. afloat during these confusing times. Despite the good intentions, many figures – such as CEO of Tesla and SpaceX Elon Musk – felt that the stimulus checks that came with the approval of the bill were a bad idea.
They argued that printing money out of thin air like that couldn’t technically be done without setting the stage for inflation and other economic problems.
By contrast to regular fiat, bitcoin is decentralized, and cannot simply be printed any time a bank feels more is necessary.
In addition, bitcoin grew from just over $4,000 in mid-March to just shy of $10,000 by the time early May came along. The currency managed to recuperate its massive losses in a relatively short period, which makes many people believe that the currency has likely matured over the years and lost some of its vulnerability to price swings.
Many Will Use the Currency Like Fiat
Researchers at the Tokenist explain that many Americans, according to a new survey, are likely to purchase bitcoin within the next five years. They state:
With over 20 million Americans currently unemployed, the public narrative towards bitcoin has changed. The results are striking. We found increased knowledge of, and growing confidence in, bitcoin among all age and gender groups surveyed. This effect was most pronounced in millennial respondents, 45 percent of whom would now preferentially invest in bitcoin over stocks, real estate and gold.
In addition to this data, more than 40 percent of the respondents – approximately 59 percent being millennials – believe that bitcoin will be used on the same level as fiat within the next ten years.