At the end of 2019, the world learned of the possible coronavirus and made a mistake by classifying it as a distant threat. Fast forward to today and the COVID-19 pandemic is something that took the world by surprise. The virus spread like wildfire and took the lives of millions all over the globe. But the people aren’t the only ones that suffered as economies took a fall. This made people skeptical about their currencies and made them look for other solutions. That’s where cryptocurrencies like Bitcoin came to the spotlight.
Why is Bitcoin important?
The coronavirus hit the global economy hard. Stock markets all over the world experienced record declines in their share prices. The US stock market was among the ones that got hit hardest. The Dow Jones Industrial Average Index had its lowest point in a long time falling by 1, 191 points. But that wasn’t the end of it as in March it experienced three more drops that surpassed that record.
The index was down by 2, 013 points, then by 1, 465, and again by 2, 353 points. There was an effort to make the index go up but it only lasted a day leaving the US economy a mess. The European stock market was hit hard as well. The Pan-European Stoxx 600 index went down by 2.6 per cent and Germany’s DAX index was down by the same percentage. Recently the European stock market has managed to recover after the slump but the pandemic is far from over making the situation uncertain.
This dire state of the economy has forced people to look for alternatives. As a result, in the past couple of months, there has been a significant rise in the use of fintech apps. This is good news for anyone trading cryptocurrencies because trading Bitcoin has become more important than ever. Bitcoin trading platforms will help you get into the market with just a quick registration and a minimum deposit.
Furthermore, these apps let you access real-time data which is crucial when it comes to making investment decisions.
The status of Bitcoin
What made Bitcoin popular in past years is the degree of freedom that came with it. The currency isn’t bound to any kind of authority and it handles transactions directly from one user in the network to another. No personal information is needed for a transaction to happen which makes Bitcoin a secure currency in the cyber world. Moreover, the only thing users need to make a transaction is a smartphone or a computer and an internet connection.
In other words, Bitcoin is capable of making remote payments something which has become a necessity during these hard times. This is probably the reason why there has been a surge in the usage of fintech apps and why the value of Bitcoin has been growing since March. The predictions about the third halving of the currency stated that this may be what the currency needs.
According to recent news, the value of Bitcoin has reached $9,500 which puts it in a pretty good position. Besides, more and more local and international institutions have adopted Bitcoin as a tool necessary for battling the pandemic.
One example that best illustrates this is the CryptoFund that has been formed by UNICEF. The organization has stated that it has had several donations in the form of cryptocurrencies. The fund they formed is there to assist in handling the economic, educational, and health problems of the pandemic.
The US has been Bitcoin-friendly for some time but it wasn’t until recently that they took a more active approach. It was the COC that allowed the federal banks to provide clients with a crypto custody service. This was a good move as it lets crypto investors keep their digital assets in the same banks they keep their fiat assets. Additionally, by doing this the US acknowledges the potential of Bitcoin and the significant impact it can have during the pandemic.
With this information in mind, it’s clear that Bitcoin is an important cryptocurrency in one of the most difficult situations humanity has faced. What’s also evident is that this cryptocurrency changes the way everyone views finance and in its transformation to a necessary currency has shown it could be a useful tool.