A new year is always expected to bring new joy and hope for everyone. The same was estimated with the current year 2020. But instead of coming up with a new ray of hope, it shunned down people’s hope with the arrival of pandemic disease, coronavirus. The disease made its beginning from China and got widespread all over the world. It resulted in the world economy coming to a halt. No medicine has yet come as a respite from the deadly virus. The only solution people got is a lockdown. Cryptocurrency, which was currently released from the ban by the Supreme Court of India, too came under the clutches of Covid19. But surprisingly, Bitcoin strikes back with reaching the target above $10K. It came as good news for many investors who were hoping for a Bitcoin investment plan but seem bothered about the corona impact on the crypto economy.
These investors were seeking a safe haven by investing in Bitcoin. And their hope came to be true when the crypto king, Bitcoin rose above the $10k in September which was much better in comparison to $3K in the previous year in December. It is really remarkable to observe how Bitcoin strikes back and other digital currencies coming at par with gold and becoming a safe-haven during crucial economic times. Volatility has always being a major factor that is responsible for affecting crypto trading. Despite its bull market run, the price of cryptocurrency remained below with short of $20K. However, this time, volatility has nothing to do with the price of Bitcoin. Rather, the main factor behind the latest surge of Bitcoin is coronavirus or Covid-19.
In the year 2016, the prices of bitcoin doubled and surged to make a high record. If Bitcoin strikes back like this, then this could revive the discussion about whether this leading crypto coin can be called money. Or whether an investment in Bitcoins can become an essential balanced portfolio part. Ever since cryptocurrencies have become a popular phenomenon, it is being accepted as an alternative to old payment methods but it is still at the risk of being hampered for unlawful activities. Besides this, there is also the absence of official regulation.
There came a warning to the consumers to carefully acknowledge the risks surrounding the cryptocurrency such as Bitcoin. This is the reason for banning the financial instruments linked with cryptocurrency by Financial Conduct Authority.
It would be no wrong to determine Bitcoin as money because it is being used as transactions over distance and time. Even though many would differ from this theory but still there are some who believe in it. But Bitcoin must also be referred to as a payment method for grocery buying or even for tax payment, otherwise, its value and utility will remain limited.
No matter how difficult the situation has become due to coronavirus, which is still persisting and has still not shown any signs to leave. However, Bitcoin strikes back amid the covid19 pandemic by crossing above $10K target in February which is far better than $3K in the previous year in December. Bitcoin has made a tremendous comeback and has come close to gold. Many investors even consider it as safe-haven during crucial economic times. Even though volatility is a bigger issue in the crypto world, still, Bitcoin has been successful in becoming investors' special choice for becoming a safe haven for investment. Performing well amid corona time is really applaudable.