Even though the year is only half way through, the markets haven’t shown this much volatility since the financial crash of 2008.
The COVID-19 Pandemic has pushed the global economy towards a recession. As the economic effects of the coronavirus are still yet to be fully felt, many in the crypto community and beyond thought that this period would be Bitcoin’s time to shine.
However, for a number of reasons, Bitcoin has failed to sustain a break past the key psychological barrier of $10,000. The failure to break the important level at a time of mounting geo-political concerns have raised questions as to whether or not Bitcoin is really a safe haven asset.
Bitcoin has a relatively high degree of accessibility which is improving daily. More and more people now have the ability to send and receive Bitcoin in a permissionless way than ever before.
Meanwhile, fiat currency is traditionally and demonstrably subject to a higher degree of uncertainty, due to its reliance upon third-party custodians.
Until the Bitcoin crash of December 2017, Bitcoin price prediction was very simple. The price was going up. After hitting a peak of around $20k the price stabilized and consolidated.
Despite a few spikes and drops, since 2017, there has been relative stability. This is good for long term growth, adoption, and enhances its safe-haven status. Think Gold. Traders love it because of its stability, especially in turbulent times such as this.
The World is Burning
Ok, the world isnt burning, but there are massive geo-political concerns that look as though they are going to get worse before things get better. With this in mind, it is only natural that people turn to Bitcoin and other digital currencies not just for every day living but also to shield them from volatile markets.
As we see in failing economies such as Venezuela, Crypto offers a way for economies to function and as the world becomes increasingly dysfunctional as each day passes, crypto’s functionality will be even more attractive
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