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The deadly Coronavirus has caused havoc and chaos to major stock markets around the globe and so far no exchanges are excluded from this pandemic. It is entering the 'bear market' as we all know since the drop is more than 20%.

Aside from the stock market, we can also see the impact of COVID-19 on the price of cryptocurrencies as most of the major cryptocurrencies dropped to its lowest in the year 2020. It is ironic how cryptocurrency is considered a safe haven and was created without any central authority that can have such a huge impact.

Credit: CoinGecko
With that being said, Bitcoin is considered not manipulated by any economic situation. This can be proven by the downturn of index SP&500 and the Bitcoin market escalated as well as when the Cyprus bank collapsed and Bitcoin manages to give support to that bank.

However, when facing the COVID-19 crisis, most investors can be seen to do huge sell-off of their Bitcoin possession as the fear of not having enough money frightens them.



We can see that even Bitcoin itself took a hit from this pandemic as we can see today and they are definitely not 100% protected against an economic crisis.

Panic Buying

You all probably heard of this term 'panic buying', especially amidst this Coronavirus outbreak. it seems that a lot of people are scared of being totally locked down in their homes and will not be able to get supplies from the outside.

Therefore, a huge sell-off of Bitcoin occurred so that people will have the money to buy stuff in bulk for long term storage in their homes.

According to the CEO of Interlapse technologies, cash will be far more important than holding on to Bitcoin since a lot of the essential supplies cannot be bought with Bitcoin and a lot of sellers prefer cash compared to cryptocurrency.

If you compare Gold with Bitcoin, people will still buy gold instead of Bitcoin since the price of Gold is determined by both supply and demand as well as it has an intrinsic value.

Regardless of all of that, some experts also encourage people to buy Bitcoin at this moment since you will be buying it at a lower price. It is also believed that the value of cryptocurrency will only rise in the future and it will not be wiped out from the face of the earth.

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Miners Being Affected

In China alone, there are more than half of the global miners and they are also being affected by this COVID-19 as well as the US. 

Currently, Bitcoin can still be mined since it has not reached the 21 million unit threshold that has been agreed by the community. After that, it will be a finite resource as no more Bitcoins will be mined and the miners will make money from the miner fees instead.

Based on Investopedia, Bitcoin will last until 2140. The question is, Will Bitcoin sustain after all the 21 million units are mined?

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