We discussed how the recent Bitcoin Coronavirus price action bullishly solidifies the December 2018 bottom of $3,200, proves the resilience of the Bitcoin network and sets the stage for further upside, but this article goes into depth about how the economic stage is being set for a new all time high in the next few months due to the increasing need for transferability, censorship resistance, and provable scarcity.
1. The World increasingly wants to transact business digitally.
All of a sudden everyone became antisocial overnight. Doctor’s offices, who have gladly kept us in waiting rooms for decades, are scrambling to offer teleconferencing. Bosses are letting more employees work from home than ever and Zoom meetings are suddenly the preferred way to conduct business. Best yet, to the snickers of Bitcoin bulls everywhere, people would rather transfer money digitally than hand each other their Coronavirus-laden dollar bills. Even Bitcoin’s closest rival, gold, is seeing unexpected negative effects from the Coronavirus impact.
There have been issues mining gold and delivering it. While this is tremendously bullish for gold in the short term, as it will definitely lead to shortages, it further highlights Bitcoin’s ease of transferability, one of it’s long standing advantages over the coveted yellow metal.
2. The World just got a Fresh reminder of the power, reach, and audacity of governments
Italy went from one of the most liberal countries in the world to an authoritarian regime overnight. Just a month ago it was vibrantly liberal, and now there are bans on weddings, funerals, birthday parties and free movement. Even the United States of America has instituted martial law in many areas. China is welding people in their houses and we’re seeing similar tactics from world governments that would have been thought unthinkable last time we observed a full moon. Banks all over the world have restricted withdrawals and some even shut down.
Bitcoin’s core principle of anti-censorship directly addresses this concern and gives concerned investors a place to store wealth, completely out of reach of any of the increasingly overbearing governments around the world. The current economic backdrop sets the stage for investors to truly appreciate censorship resistance.
3. Government Currency is being Devalued at the fastest rate in history, all over the world
In the United States alone, trillions of dollars have been created in stimulus efforts to mitigate the looming economic threat which just ended wall street’s longest bull run in history. Germany is boasting unlimited cash and the European Central Bank isn’t backing away from this fight either, as Christine Lagarde pledges a 750 billion euro commitment. All of this money being created devalues the rest of it in circulation, bringing to light Bitcoin’s provable scarcity principle.
The general population currently doesn’t understand why creating money at this pace is alarming economists, but when the signs of inflation start to show, wall street and main street will be seeking alternative ways to store their wealth.
Bitcoin’s provable scarcity, transferability, and censorship resistance make it the perfect financial instrument to weather crisis situations just like the one unfolding right now.