The Impact of the Coronavirus on Bitcoin and Beyond

 

The Impact of the Coronavirus on Bitcoin and Beyond

The Impact of the Coronavirus on Bitcoin and Beyond

The value of Bitcoins is increasing during the COVID-19 epidemic. The speculation is whether the bitcoin will weaken, or increase, as the epidemic continues.

If there is one thing that financial markets do not like, it is the uncertainty that was given to the markets between 2020 and 2021. Not only did the corona virus cause coughs and deaths. It also affected financial markets, where people could not go to work in search of an unexpected future, the supply of products was becoming difficult, and many people lost their jobs.

But this is not the story of the bitcoins, which went through the glass roof and hit record high values ​​that people only dreamed of before the epidemic. As the world entered a new decade on New Year's Eve 2019, a bitcoin cost a little over 7 7,000. In March 2020, the price dropped to a value of about ً 5,000 but quickly regained its strength, and in 2021 it hit a record high of over ,000 67,000. The rate is changing day by day.

Increased demand for limited bitcoins

۔ The epidemic needed oxygen. For the bitcoin to be strong, and now the speculation is whether the bitcoin will remain in high values. The reason why bitcoins suddenly become so valuable is because of the technology behind bitcoin coding. When bitcoins were introduced in 2009, it already had a code that set an upper limit for having multiple bitcoins in circulation. This limit was 21 million bitcoins and was close to a long time. mining.

So, now bitcoins are a limited resource, and as the demand for limited resources grows, so does the value of that resource. Therefore, the bitcoin hit record highs.

During the epidemic, financial markets were shaken, leaving investors with a lot of money. Often the financial crisis causes more money to circulate through loans. Therefore, investors buy bitcoins because more coins will not circulate.

Will Bitcoin fall or rise in the entire Corona virus epidemic?

It is not easy to predict. The day after the news of a new mutation of the corona virus called 'Omicron' in South Africa, Botswana and Hong Kong, the world media like CNN; Stock markets reacted negatively. The threat of new epidemics based on a more resistant virus to a vaccine has shaken markets as they rely on vaccines to be the key to tackling the epidemic.

Bitcoins also fell in the morning following news of various virus outbreaks in South Africa. In just 12 hours, it dropped from 59 59,000 to 54 54,000 for the bitcoin. But if the modified virus continues to plague and allow inflation to rise again, the bitcoin could once again be seen as a safe haven and the demand for limited bitcoins could increase.