The world is finally cozying up to Bitcoin in a pretty serious way, and that has even been fueled by the current Coronavirus global pandemic that has many central banks encouraging the use of cashless means of payment.
As such, the authorities seem to have, either knowingly or unknowingly, encouraged the use of cryptocurrencies as a mainstream means of payment. Indeed, many governments have slowed down on their earlier onslaught against cryptocurrencies.
Fiat Is Losing The Battle
While the use of cashless payments has been highly encouraged as means of steaming the spread of the COVID-19 through cash, many people have discovered cryptos in the process.
Indeed, there seems to have had a notable increase in the new people testing the waters in the crypto world. In this case, Bitcoin seems to be gaining the upper hand by virtue of it being the most popular as well as the most easily transferable and trustable cryptocurrency.
As such, the use of Bitcoin has been on the rise, meaning that people are now moving away from fiat currencies in the face of possible inflation and loss of value as the world stares at a possible global recession.
It is to be remembered that it’s the economic recession of 2008 and its subsequent effects that thrust Bitcoin into the limelight and fueled the rise of the larger crypto industry and altcoins entered the market following Bitcoin’s debut back in 2009.
The current economic crisis could have a similar effect where Bitcoin and altcoins gain more favor and mass adoption as a credible means of funds transfer. Also, Bitcoin seems to have already carved a special niche as a store of value rivaling Gold.
Short-Term Vs Long-Term
The optimism surrounding Bitcoin and the crypto market at large isn’t as far-fetched as some pessimists might want to believe.
Bitcoin is expecting its reward halving in May, an event that has been known to propel its price to new heights on multiple occasions.
Also, the possibility of the COVID-19 pandemic ending soon spells good news for Bitcoin. According to J. Williams, co-founder of Morgan Creek Digital, Bitcoin could hit a new All-Time-High value sometime in September. Williams let his opinion known in a tweet.
Understandably, the logic behind this projection points to the fact that the price may not shoot immediately before or after the halving, especially since the pandemic may take a few months to subside and pave way for a reset of the true market dynamics.