5 Reasons to Invest in Cryptocurrency During the Pandemic – 2023 Guide
Coronavirus pandemic shook the foundations on which the modern world is built. Travels seized to exist, going to work was made impossible, shopping stopped, and sports were gone. The first few months of this year were not ones we’re going to remember for good. Across the world, the financial crisis started to show its ugly face. While we can’t see any lasting consequences of the ongoing situation, we can say that investors began to change their minds.
The US dollar and some precious metals started to lose their value. The traditional values are slowly exiting this world of ours, and we are lucky that they’re replaced by assets such as cryptocurrencies. Yes, cryptocurrencies started to grow in values since the early March, and the trend continues to this day. We can say that investing in crypto is a wise decision you can make right now. Please, go through our five reasons to invest in cryptocurrency during the pandemic, and tell us if you share our opinion. If we’re on the same page, that’s good; if not, please let us know why in the comment section.
1. It’s Protected Against The Inflation
This is what puts Bitcoin and other cryptocurrencies above FIAT ones. Cryptocurrencies have a set amount of them available at all times. Even the number you can mine is also fixed. This is what preserves its value. Thanks to the blockchain system, the number of any crypto can’t change with time, and it is because of this, a global crisis such as this one we currently have can’t affect it big time. COVID-19 affected all spheres of life, but crypto is surviving rather well.
The one thing that affects BTC and other altcoins is the halving. This needs to be done so that the exact number of BTC is known at all times. But, BTC is volatile, and this event doesn’t cause it to shift value when it occurs. This is what makes crypto more predictable compared to FIAT currencies that are going through times of turmoil. If you are eager to invest during the ongoing coronavirus pandemic, you need to know that it’s safer to put your trust into cryptocurrencies rather than in FIAT ones, for the reasons we listed above.
2. The Weakening of US Dollar
This crisis hit the United States of America more than any other country. In the US, you have more infected and diseased than in any other part of the world. Because of this, life in this country is almost halted. People can’t go to stadiums, and most larger gatherings are canceled. This caused the US economy to be shaken to the ground. But, despite this, the money operations are still ongoing in America and other parts of the world. Many transactions remained available thanks to Internet.
Yes, the Internet remained the same, but the US dollar weakened in recent times, and the trend continues. Many companies in the US are on the PPP loans (Payroll Protection Program), while millions of citizens are relying on public financial assistance. All of this weakens the dollar further, and their economy suffers. The US is a global force, and the dollar is one of the strongest FIAT currencies out there. Unfortunately, the trend changes. People who look to invest shift their view away from the US currency. The place where they look now is the crypto market. Many people even decided to put their $1.200 stimulus money into cryptocurrencies.
3. The History Repeat Itself
This isn’t always good, as it shows we didn’t learn from our mistakes. But, in the case of BTC and other cryptocurrencies, it could signal that we did learn a thing or two. In recent years it was noticeable that cryptocurrencies work better after encountering a financial crisis. After all, the most significant player on the crypto market, BTC, saw the light of the day after the 2008 global financial crisis. It has tendencies to gain value after a big problem hits and passes.
Through the years, we saw that crypto are volatile assets. With BTC know that it reaches the most prominent heights after reaching the low ends. When the COVID-19 pandemic started, it affected the crypto market. Many cryptocurrencies dropped in value. The drop was short, and after a while, it started going up. As this crisis is approaching its end, we can only expect that BTC would continue to grow. We can say that thanks to its resilience in the coming months, you could earn much if you invest in BTC today. Things like this about crypto is vital to know, and you can stay in touch by visiting hometownstation.com and keep yourself updated.
4. Prices Will Grow Further
As we already say, the situation on our hands turned the people who look to invest in cryptocurrencies. This causes their prices to soar high, and the trend is going to continue. For all of you willing to bet on BTC and another crypto, this is good news. The demand for crypto is on the rise right now, and this adds to its value. It’s interesting to see how many people started using various types of cryptocurrencies as their primary currencies. In the age of technology and the Internet, it is much easier to do so. This trend also increases the value of existing cryptocurrencies and gives birth to new ones. Handling money is becoming a thing of the past, and electronic financial communication using crypto becomes the norm. The more people use digital currencies, the more they are going to hear about them. With increased popularity, only the sky is the limit. If the ongoing crisis extends, we could see an even bigger rise in the value of cryptocurrencies.
5. It’s The Future
Today, even people bot involved with the Internet and technology have heard about cryptocurrencies. Those who are aware of them for a while now are already backing it with their assets. If you didn’t know, prestigious colleges such as Harvard or MIT already have their crypto funds. The credibility of cryptocurrencies is real, and if you haven’t looked into them, this could be an ideal moment. After all, the age of coronavirus mad people sit behind their computers more – why not take advantage of it?