Financial markets globally are in a state of shock. Nationwide lockdowns might have kept the Coronavirus at bay in some cases. However, several small industries and businesses could not make past the lockdown.
The total number of people slipping into unemployed states soared past thirty million in the US alone. This number is much higher in some parts of the world.
Japan slips into an economic recession, as supply chains get completely devastated
The world’s third-largest economy slumped into a recession. Its economy shrank more than 3.4% in the first few months of the year. The COVID-19 pandemic is taking a toll in a heavily trade-dependent economy such as Japan.
Bitcoin shines through the Coronavirus crisis
In times of extreme crisis, Gold has always been perceived as the safest haven. And undoubtedly so! Gold prices increased to record levels this year. One of the ideas behind the use of Bitcoin was to stand guard as a safe investment in situations such as this. And for the patient investors, BTC has stayed true to its design.
If we look at the BTCUSD daily-chart, we can see a steady increase in prices. In such times of crisis, prudent investors look for preserving their wealth. And not think about profits!
BTCUSD helps in preserving investors’ wealth
BTCUSD, similar to Gold, has not only preserved investors’ wealth but helped increase the value. It is obviously applicable for the more patient investors, those who bought BTC at attractive prices and then held onto them.
With the US Federal Reserve hinting at more Quantitative Easing measures, people are hopeful of a recovery. The Coronavirus might indeed be the tipping point in the world of Finance. Could Bitcoin be the successor to Gold, only time would tell!