COVID-19: The Next Bitcoin Boom

A phantom pandemic has gripped the world, and this has wreaked havoc on the economy, people's health, and caused financial ruin. Confined to the spaces of the four walls of their abode, many people have lost their jobs, unemployment rates are at a record high, and government institutions are scurrying to save the economy. In the crypto sphere, this does not look good at first glance. However, upon close inspection, this pandemic might very well be the cause for the next big boom, the next bitcoin bubble - and it is at our doorsteps. 

Let us look at the various circumstances that might contribute to the next bitcoin bubble. Happy reading!

India

In March, the Supreme Court of India overturned a two-year ban on cryptocurrencies in a historic verdict. Since then, buying and trading in bitcoinchampion.io have increased manifold, and the COVID-19 induced economic lethargy and lockdown has added fuel to the fire. 

Immediately after the imposed ban was lifted, several exchange platforms saw an explosive increase in trading volumes. One particular platform, "Cashaa India," saw an 800% surge in volumes within two days of lifting the ban. 

India is currently plagued by record unemployment levels that are worsened by the lockdown, and many believe that cryptocurrencies and blockchain technology could help a stagnant economy by creating new jobs. 

One of the main reason RBI imposed the ban was to curb the onslaught of scams that swept the country. Many were worried that enthusiastic investors could lose money to scams, as reports suggested that hundreds of thousands of people were joining crypto trading platforms every month. In 2017-28, news outlets consistently published stories of eager people with minimal knowledge of crypto being duped of colossal amounts of money. 

India and elsewhere

In 2017, as stories of early investors becoming millionaires became the hot topic everywhere, many speculators were driven by the 'fear of missing out' motto. Retail investors scrambled to get a piece of the cake. This led to the eye-gouging rally, as the price of bitcoins rose from $1000 per coin to around $20,000 within one year. 

Moreover, the 'halvings' that happen every four years, and this technical event has become a catalyst for substantial bitcoin rallies in the past. Though the May 2020 halving proved to be anticlimactic, top trading platforms have had a significant increase in new users since the beginning of the lockdown. 

Additionally, the benefits of bitcoins come to the forefront when looking at the myriad of issues traumatizing the economy now: People in many parts of the world and especially in China are afraid of paper currency for fear that it might contain the virus. Central banks and government authorities all over the world are currently pumping humongous amounts of 'freshly-minted' money into the economy to revive the dormant economy. 

Moreover, due to the dilution of currency ensued by the pandemic, asset scarcity is widespread. All these points are giving making investors feel bullish about bitcoins. 

This points to one thing: a significantly high chance for a new bitcoin bubble. Who knows, this might even put the 2017 bitcoin rally to shame.