What to Possibly Expect from Bitcoin This Week
The spread of the Coronavirus has left everyone baffled. Its global impact has severely affected the world’s economy. Businesses are being shut down, companies are laying off employees, the currency value is dropping, the economy is collapsing, and most shockingly of all, the oil price dropped below zero. At this point, cryptocurrencies like bitcoin are in high demand now, more than ever. Bitcoin is a digital currency, which is supported by blockchain technology. The concept of cryptocurrencies focuses on safe electronic transactions.
Through bitcoins, safe electronic payments are possible. The reason why Bitcoin is so popular is not because of its increased value over the years, but because Bitcoin is not controlled by the government, and the government has zero authority over Bitcoin and its transactions. It is the feeling of freedom that people value even more during such times. A few economic disasters caused by the global pandemic COVID-19 have bought most activities to a stop.
A popular opinion in this economic crisis is that, once the world settles as soon as this pandemic is over, It’s the cryptocurrency, Bitcoin that saves the day, not the banks or government. It is also predicted that the value of one bitcoin will go up as far as $250,000.
In places where the stock market has crashed dramatically, the usage of digital money and fintech apps has increased. Many people are going cashless in this condition due to the pandemic, and Bitcoin is helping greatly in this scenario. Bitcoin is now a very safe and remote way of electronically transferring payments since there is a high risk of paying cash or swiping cards and contracting the COVID-19. At this point, Bitcoin is “immune” to the coronavirus. It is safe to say that a person shall not be hesitant when contemplating buying cryptocurrency or not, as the price is predicted to rise over the course of time.
The acceptance and use of Bitcoin will only grow in these next few weeks, from payments made in a coffee shop to something out of the imaginary in the near future. As of right now, many countries have had travel restrictions, and international payments are not always the fastest method of payment, especially now that most banks are closed due to the COVID-19 situation. This is where Bitcoin comes to play; Bitcoin can transfer money internationally in as little time as 10 minutes, whereas a bank would do the same in 3 business days minimum.
The extra fee for Bitcoin is almost ten times less as the fee for government banks when making international payments. This may increase, of course, over the course of this week as Bitcoin will be in more demand, but it will most likely still be less than the standard fees for international payments through a government bank.
Bitcoin is a platform that can never crash, unlike stock markets, and it is accessible every and anywhere, even at this point in the pandemic. With lockdown, where people are forced to self-quarantine themselves until the pandemic is over, it is nearly impossible for people to get access to ATMs. Luckily, Bitcoin is accessible anywhere, and the only thing you would need is a bitcoin wallet; this is where your bitcoins are stored and an active internet connection. It is rumored, that within the next few weeks, Bitcoin will be easier to access.
Many cryptocurrency companies are holding fundraisers and charities to help “save the day” during this tragic COVID-19 pandemic. Binance Charity, a blockchain technological platform, started a campaign called “Crypto Against COVID,” where it had received various donations amounting to 160 Bitcoins. Binance aims to have donations of 1 Million USD, to donate to hospitals later this week. Another crypto company, HelperBit, launched a Bitcoin Fundraiser with the name “Italian Red Cross.” Italy, like the USA and Spain, was one of the countries that were hit heavily by the virus, and it will use donations from the Red Cross organization to buy core infrastructure and medical equipment for the project and protection for the medical staff. Medical workers are wanted on the front lines, now more than ever. As of right now, Red Cross has achieved around 85% of its goal, but by the end of the week, it is predicted that it will reach about 92% of its goal.
The biggest drastic event happening to Bitcoin later this week is the “halving.” Halving bitcoin means to cut the production of Bitcoins every four years in half so that Bitcoin will only generate 50% (half) of the yield that is used to. You may ask why such an event is even taking place, well the answer, quite simply, is to ensure the scarcity of bitcoin and to make sure it prevents extreme price inflation. Bitcoin price took a drastic jump from around $7,500 to over $9,500 just two weeks before halving.
The halving of Bitcoin actually increases the value by up to 80 times, as seen from the past in 2012. In 2016, the value of bitcoin increased by 300%! This increase in price is due to the basic business principle; if the supply suddenly drops, but demand stays the same, the price will inevitably go up. So, you can only imagine what will happen to the value now, due to the Coronavirus and the halving of Bitcoin.