The world watches with much anxiety to see just how much financial havoc COVID-19 will wreak on worldwide economies as growth is suspected to be at its worst since the year 2009, global shares shrug as the recession is imminent and thousands of lives are claimed worldwide by the infectious CoronaVirus outbreak. If we compare shuddering stock-markets to Bitcoin, will the cryptocurrency have what it takes to remain resilient and outshine conventional currency?
Bitcoin Versus COVID-19
Cryptocurrency does not deny the implications of the global pandemic, as it was designed with all possible causes of financial stress in mind. It is notable that tweets were made in an effort to warn the cryptocurrency public weeks ahead of time. And these warnings were not in vain as for the first time since January, Bitcoin was trading below $9000!
According to the fluctuation with Paxful’s BTC to USD calculator, we are not shocked to see that the chart depicting the Bitcoin price history reveals that the 12th of March 2020 scolded at $4857.10 to 1 BTC, as posts raising concerns were tweeted by crypto giants about the hit cryptocurrency (as a whole) might take, were made on the 8th of March. It is believed that cryptocurrency companies have done a better job preparing to take the knock of the disease than other industries.
Will Bitcoin recover?
It definitely seems that things will only deteriorate before they get better when we look at the rollercoaster ride that the Bitcoin price history chart has been. The Bitcoin managed to inflict pain on the entire crypto market, and with the unpredictable BTC price dropping at a slow 0.18% in the last 24 hours after recovering 6.70% in the past week, the status of Bitcoin is growing into an even greater topic of controversy than ever before.
Although, there are many positives that Bitcoin has yielded from the global financial crisis, such as Bitcoin Software firm Casa which is looking to implement financial management software in times of global pandemic. There are even Bitcoiners who have taken it upon themselves to fund research into developing the COVID-19 Vaccine.
Although there is a ton of controversy and uncertainty surrounding the topic, as there are companies such as Nasdaq are claiming that any kind of cryptocurrency is not a ‘fail-safe’ during the coronavirus outbreak, Bitcoin.com argues that it most definitely is as transferring money through Bitcoin ATMs requires less queuing and therefore reduces the risk of the spread of coronavirus.
Bitcoin’s Cold Competitor
The developers of cryptocurrency have implemented a way for traders to bet on the epidemic by generating a digital coin which derives its worth based on how many people are infected and the coronavirus mortality rate; enter the CoronaCoin. Coins are destroyed every 48 hours (as per the company’s website) in correlation to the number of lives the disease has claimed or the number of people who have been affected. Who could ever think that a global pandemic could inspire a new cryptocurrency into being?