- Bitcoin had a chance to shine during the coronavirus pandemic and it missed it due to temporary correlation.
- Supporters believe that it will show strength when it matters, as they praise its anti-inflation mechanisms.
- High-profile names from the financial industry keep insisting on limited supply and benefits of halving.
Over 11 years ago, when Bitcoin was created, the coin was promised to be a solution for the future. It was presented as something that should be able to prevent financial collapse during any future crisis. Satoshi Nakamoto, the coin’s creator, wanted for Bitcoin to be there when traditional finances fail.
Now, for the first time in 11 years after the coin emerged, the opportunity to test its performance under such conditions arrived. The whole world suffered due to the coronavirus pandemic, and Bitcoin finally got its time to shine. Unfortunately, this did not happen.
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However, Bitcoin bulls and its loudest supporters do not seem to care. They still see the coin and its future brighter than ever, especially as central banks continue to make all the wrong moves in order to preserve the economy, All of their efforts threaten to damage it even more, which is why Bitcoin bulls promote Bitcoin’s limited supply as its strongest weapon.
This doesn’t just include anonymous traders from Twitter, but also some of the biggest names in the industry, such as Tyler Winklevoss, Paul Tudor Jones, and Mike Novogratz.
Bitcoin attracts attention by doing the opposite from the Fed
The arguments emerged about a week ago, as Bitcoin went through its third halving. The halving refers to the rewards that BTC miners receive for processing transactions and ‘solving’ blocks. Their rewards for doing so come in the form of new Bitcoins, which are cut in half whenever a halving takes place.
So, with the central banks printing excessive amounts of money and threatening to crash the economy, Bitcoin is doing the opposite. In fact, it started surging as soon as the banks mentioned unlimited money printing.
As Bitcoin reduced the inflow of new coins, central banks are now trying to find additional solutions for handling the current situation. They are slashing interest rates, increased bond buying, and more than $8 trillion was dedicated to softening the blow caused by the virus.
Meanwhile, nobody likes the decisions that the central banks and the governments are making, which has pushed a lot more people towards crypto. At the same time, high-profile names continue to praise the crypto industry for its qualities and benefits.
It also helps that Bitcoin rallied about 30% this year, while the S&P 500 Index crashed by 11%, making BTC one of the best-performing assets in 2020. Of course, BTC is still far from its peak, but thanks to the halving, many expect that it will surpass it by far in months to come.