The state of flux that the entire world is experiencing right now is immensely difficult. In a situation where most of the companies are laying off their staff, a large chunk of the population is unemployed. Right now, everyone is focusing on surviving. They are trying to keep the cash flow ready in hand in case of emergency. Thus, the number of Cryptocurrency investors has considerably decreased during this time.
With all the aspects of the economy failing miserably, people are turning to their assets which they can easily cash. In many countries, due to the Government bans and protocols, the transaction in Bitcoin is not as simple as it would have been in other investments. This is discouraging many investors to indulge in Bitcoin investment at the moment.
Ever since its introduction, Bitcoin has always steadily moved upward in terms of value. In 2017, Bitcoin reached its highest value till date. This had caused uproar in the market. However, today, the value of Bitcoin is low as $4,000. Many investors have retracted their investments. They found it necessary to liquidate their assets, and most importantly, the ones that are not easily accessible.
Even though investing in Bitcoin is easy, not many people can keep their faith hooked to Cryptocurrency. Nobody fully understands the workings of the market. In order to avoid uncertainty, especially in times of crises, many investors have sold their Bitcoins.
In today’s market, new investors are discouraged in turn due to the downward sloping value of Bitcoin. They do not have faith in Bitcoin’s stability as a currency. The hospital sector is draining the funds in the economy. To meet hospital costs, people are pulling out their investments in other places in order to survive this pandemic. As a result, the investment in various sectors has gone down, and so has Bitcoins. The lesser the number of investors, the further lower the value drops.
Usually, the value of assets dropping would lead to a rush of investors in that field. That is not the case this time, due to the second wave of the coronavirus outbreak. Countries like India are the worst hit. Thus, even the uplifting of the Supreme Court ban on Cryptocurrency did not help the market in a country like India. The people are more focused on surviving this outbreak, instead of indulging in any other luxuries. People, who have enough savings to take a plunge in the Cryptocurrency market, check the digital coin investment platforms to form an idea about it.
It will take some years of recovery before the value of Bitcoin can reach a stable high. The major setback that the economy has faced in recent times due to the second wave of the ongoing pandemic will take a few years to settle. The recovery period comes much further into the future.
The Future of Bitcoin
For Bitcoin to reach the stature of Gold or Silver is a long time from here. The stability that the investors associate with the Gold or Silver market is barely found in the Cryptocurrency market. Even though the economy is slowly progressing towards a digital gold investment, for Bitcoin and other cryptocurrencies to step up, the fiat currencies have to step down.
For as long as the U.S. dollars keep going strong, there is not much hope for Cryptocurrencies like Bitcoin to soar high. The U.S. Government spends a huge amount to keep the American dollars devoid of any possible competition. With that sort of an arrangement, it is nearly impossible for Bitcoin to have a career graph wherein it replaces the dollars. However, if it follows the current trajectory, and moves upward eventually, both the concept of digital gold and that of Cryptocurrency will be easily acceptable to the people at large.
Investors are pinning their hopes on Bitcoin’s rise in value. If not in the near future, Bitcoin is predicted to have a great recovery soon.