The Coronavirus Has Served a Loft Purpose, in a Way
While the virus ultimately caused bitcoin to lose most of its value in mid-March of this year, those losses have largely been earned back. In addition, the Fed has resorted to the excess printing of money and the release of stimulus funds to assist people as they deal with a flailing economy and an illness that very few people really seem to understand. This excess printing of money has caused many to resort to bitcoin as a means of combatting possible inflation and hedging their wealth.
The coronavirus pandemic is occurring right as the world’s number one digital asset by market cap has undergone its third halving in its short, yet significant history, but despite all this, people seem to be more aware of BTC than ever. Is it possible the coronavirus has sparked this newfound attention towards bitcoin?
Muneeb Ali – founder and CEO of Blockstack – explained in an interview:
If the bitcoin network continues to grow in strength and the price continues its upward trend after the halving, it could be a huge signal to the public that bitcoin and blockchain are not one-off trends. They’re long term, cyclical phenomena. Bitcoin was born during an economic crisis, and it is fitting that it’s about to have its most visible test before the public during a similar, if not more dangerous, financial calamity.
Bitcoin first arose following the Great Recession of 2008. In its whitepaper, it is clear that Satoshi Nakamoto – the creator of bitcoin – takes issue with the idea that so many people are dependent on standard banks and traditional financial institutions, and bitcoin is designed to give financial independence back to the people.
Bank of America Securities believes the Federal Reserve is likely to print as much as $10 trillion in new bills, which will then be pumped back into the economy. As a result, Ali believes that bitcoin has never been more important, and that anyone who doesn’t get involved is missing out on a huge opportunity.
Now Is the Time for BTC to Be Declared King
It has never been a more fitting time to let people genuinely ponder the benefits of bitcoin. While bitcoin halves, average citizens, especially in western societies, are being forced to consider the question, ‘What is money?’ As governments are artificially propping up the stock market to save people’s pensions and checks for every household are being printed out of thin air, the illusion of sound money is being laid bare for the world to see… If bitcoin’s network strength continues after the halving, I anticipate more and more projects will begin anchoring themselves to the bitcoin blockchain as its durability becomes more undeniable.