What is Bitcoin’s future after COVID-19?

Financial markets all over the world have been affected by the COVID-19 pandemic last year. The same impact we have noticed on the cryptocurrency market as well. However, while the rest of the financial markets are still struggling to get a hold of the situation, cryptocurrencies are breaking records in terms of price surges. People who have been investing in cryptocurrencies or who have an understanding of the market think that Bitcoin and other cryptos have a brighter future ahead.

What was the effect of coronavirus on the crypto market?

According to the coronavirus outbreak the correlation between the cryptocurrency market and the equity market. 12th March 2020 the price of Bitcoin fell under four thousand dollars. Right after this incident, the S & P Index in the United States witnessed a sharp fall. It happened because as soon as investors realized that the flight for liquidity is increasing, they liquidated assets including cryptocurrencies into cash. However, Bitcoin prices started soaring up from April 2020 and in February 2021 they reached a new high.

As we speak about the angel investors, many of them comment that they were uncertain about the market performance of Bitcoin. As Bitcoin and S&P are not really in correlation, the shift in the market is pretty steep. While the cryptocurrency market has seen a surge, the other financial markets are still struggling to get a hold of the situation in the post-COVID-19 world.

Will cryptocurrency ever be a safe haven?

With the rise in pricing, many new investors are becoming interested in Bitcoin transactions and other cryptocurrencies. Many investors are voicing for Bitcoin over other financial assets. However, not all experts agree with that. Many well-known angel investors who have years of experience in the cryptocurrency market thinks otherwise.

According to them, gold and silver are still much safer as the market is more stable and reliable. Even though presently the trajectory of gold, silver, and Bitcoin appears to be the same, Bitcoin is still not the safe haven that people hoping it to be. The instability of the market still plays a huge role in deciding whether cryptocurrencies can be treated the same way as Fiat currency.

Many of the experts think that treating Bitcoin as a safe haven is a monumental change and this can happen only when the Fiat currency is under some serious threat. While some economists would see investing in cryptocurrencies as nothing short of gambling, some financial advisors think that it is a move towards digitalizing assets or digital gold to be specific.

Both the USA government and the Federal Reserve Board are trying to push billions and trillions of dollars into the struggling economy. Even with the inflation in effect and the US dollar value becoming much less than a few years back, the dollar still holds the primary place in the world economy. As long as the US dollar is the heart of the economy, it is difficult for cryptocurrencies to take that place.

How is cryptocurrency treated in other parts of the world?

There are many countries that do not allow investing in cryptocurrencies. From Algeria, Bolivia to Vietnam, Bangladesh, and many other countries have completely banned cryptocurrencies. As cryptocurrency has been used by criminals or people who are associated with money laundering, it is marked as a currency that is used in the underworld. Besides, the trading of Bitcoins cannot be controlled by the government or any other financial institution, which means it is not easy for the countries to regulate the amount of crypto moving around.

However, India is one such country that has recently lifted the ban and started allowing people to invest in Bitcoins. With the current struggling situation, people want liquid cash instead of digital currency. Equities are currently offering more benefits and looking more lucrative as a traditional form of asset.

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