Yes, we know, it is still a hard time for investors, especially in our market. Maybe today – if not for the coronavirus – for 1 BTC you would pay USD 15,000. Unfortunately, it’s different. In this article, however, we will about why the future of cryptocurrencies is optimistic.
The future of cryptocurrencies
We know that such articles are a bit of divination from coffee grounds. None of us knows the future. But it’s worth thinking about why it is worth being an optimist today. At least when it comes to cryptocurrencies.
Blockchain will save the economy and politics
The basis of Bitcoin is blockchain. Now, when we live in a time when supply chains are interrupted and logistics specialists are tearing their heads off, blockchain can be an ideal invention due to its transparency. Large companies and governments will want to create systems based on this technology. It’s not just about deliveries. We can also count on the development of programs for recording electoral votes and a general jump in interest in smart contracts.
In the above may use mainly Ethereum , but let us not delude themselves, even investors with speculative reasons also look tasty eye on Bitcoin and other leading cryptocurrencies.
Reprint and destruction of fiat currencies
This is an argument that comes up very often, but this text would be incomplete if we omitted it.
The Fed, ECB, People’s Bank of China and even the NBP – almost all central banks are printing money for power today. The reason is obvious – they count on them to overcome the economic crisis with helicopter money. This, of course, does not make much sense, but the bankers’ habits do their job. When the average Joe notices that he is paying for a loaf of bread 3 times more than eg a year ago, they will start to look for alternative currencies. This has already happened e.g. in Venezuela and may also start in western countries soon. Bitcoin can benefit because it is the perfect answer to the weakening national currencies.
The epidemic in China is coming to an end, and halving is approaching
First of all, the news not only from China is optimistic. The number of cases is also “flattening” in Lombardy, where the epidemic began in Italy. In Poland or Great Britain, the worst is ahead of us, but there is a chance that the situation will normalize by May. In turn, then, we will also have the halving in the BTC network, which until recently was considered a very bullish signal and in previous years began somehow speculative bubbles on cryptocurrencies.
The accumulation of these two factors (plus maybe some good news about the development of the coronavirus vaccine) can make us return to the bull market in a strong way.
What we know till not is that bitcoin did not perform well when the corona crisis began. It will probably not perform very well during the crisis, but when the corona crisis is over, bitcoin might explode as the best option to rescue people from the unlimited fiat money injected in a failed monetary system. Most likely, the Wuhan virus will be mastered soon . And remember, that the problem is no longer an epidemic, but an economic crisis that can overshadow the 2008 financial crisis.