Corona Virus and Bitcoin Price
Bitcoin and other digital currencies ae still in their infancy because they cannot bear any economic turmoil. Unlike flat money, there are devastating effects on bitcoin prices due to current corona pandemic. Such prices fluctuation is not a new thing previously, the homicide of the Islamic Revolutionary Guard Corps-Quds Force left a remarkable impact on bitcoin prices in Iran and the prices shoot up by 4.74%.
The pandemic dropped bitcoin prices to such a level that many miners especially in china are forced to shut down their setups because of low profits. China has been the market leader in bitcoin mining since many years because of low electricity rates and more equipment availability but the COVID forces market dominator miner to close their setups. This virus have overall effected every field of life including the mining market and secondhand mining equipment which was considered to be the back bone of bitcoin mining industry. The deputy director of the blockchain Commission in China’s Ministry of Commerce, Wu Tong has already taken the precautionary measure by reducing the prices of such machines.
Corona has not ended yet, it continues to spread worldwide and economic storm has just started. A million of people are affected with this virus and thousands deaths have been reported. It is predicted that bitcoin prices fall further, trackback to $4000 or even less. If lockdowns are kept impose by countries than the financial crises may even turn more severe and consequently the bitcoin prices.
However, despite all the economic downturns bitcoin prices has increased this week and touch $6900 and the trend is still following. Why digital currency was developed? According to a report, this is the situation for which bitcoin was developed when people are afraid to touch paper money and wanted to make more online payments. Bitcoin act as safe haven asset in the prevailing market situations.
Therefore, bitcoin seems quite unreliable in current corona pandemic. The market is highly volatile, prices are changing in seconds. We cannot predict upcoming trends i.e. some experts are saying it as safe haven asset but the price fluctuations do not proves such statement. Just to be on safer side try to hold your coins and make right decision at the right time in order to have greater rewards. If you a novice than start trading low capital and when market become stabilize then make bigger investments.